Deals in Focus

Deals in Focus | UK Large Cap 16th March 2020
17th March 2020 Atheneum Team
16th March 2020

Key Atheneum Experts

Former Head of Logistics – Kurt Geiger
Former Women Shoes Director – Givenchy
Former Senior EU Marketing Manager – Jimmy Choo

Key Information

Consumer
HQ – UK
Operations – Global

Cinven is reportedly exploring sale options for their stake in Kurt Geiger. The UK premium footwear retailer is expected to return £40-45M EBITDA for the fiscal year-end Jan-20. Bank of America is advising and is expected to market Kurt Geiger for 12x EBITDA. US wholesale business expansion; and continued EU and Asian growth contributed to increasing EBITDA by 5.6% between Jan-18 to 19, and a 3% YoY increase in sales.

Key Atheneum Experts

Former MD – MFG
Current Head of Retail UK – Shell
Current UK Retail Operations Manager – Shell

Key Information

Energy
HQ – UK
Operations – UK

Motor Fuel Group (MFG) is being prepared for a £3B sale. The UK based petrol forecourts company has an EV 10x earnings; suggesting its revenues would range from £250M to £300M. MRH, a competitor to MFG, was bolted on by the vendors in 2018 which contributed to the company’s success. It is expected other forecourt operators will express interest.

Key Atheneum Experts

Former Senior Strategy Director – Asda
Former Senior Supply Chain Strategy – Asda
Former Commercial Strategy Director – Sainsbury

Key Information

Consumer
HQ – UK
Operations – UK

Walmart onboarded Rothschild to reinitiate the sale process for UK grocery chain Asda. Asda was initially marketed to PE funds however major players Blackstone, Advent, CVC, KKR & Carlyle opted to not bid; potentially due to PE firms’ lack of interest in traditional physical retail models. Walmart took Asda private for £6.7B and has a valuation for £5B; an IPO is an attractive offer for Walmart, who would intend to keep a stake.

Key Atheneum Experts

Former Head of UK Operations – PD Ports
Former Director & GM – PD Ports
Former Transformation Director – Association British Ports

Key Information

Logistics
HQ – UK
Operations – UK

Brookfield Asset Management is inspecting options for a potential sale of PD Ports. The UK shipping terminal operator has operating profits in the range of £50-60M; with bankers estimate a valuation between £1.2-1.6B. Interest from pension funds and infrastructure funds has been expressed in the British port business as an attractive long term investment, given the industry stability.

Key Atheneum Experts

Former COO – Capita
Former Associate Director Debt Solutions – Capita
Current Group CFO – Cogital Group

Key Information

Commercial
HQ – UK
Operations – UK

Capita will be advised by Citi on their divestiture process. Capita is a UK process outsourcing firm, who are looking to sell 3 entities in their portfolio, including their debt solutions service. The sales will be used to increase investment as part of their turnaround strategy. It is hoped the large investments will restore investor confidence; recent full-year results prompted a 40% slump in shares. Market cap stands at £1150M.