April
Deals List

It has been a year since lockdowns, economic restrictions and remote working were imposed for many. Following the sharp fall in the markets in 2020, the rebound has been dramatic¹. As we note in our Private Equity Market Snapshot, buyouts and venture capital have had a very strong start to 2021.

Private Equity Snapshot April 2021

With continued access to debt markets and support from governments, European valuations are expected to increase in the next 12 months as competition between corporations, private equity sponsors and SPACs continues to heat up². This increased competition, however, has posed a challenge to firms making new investments, with the risk of overpayment and lower returns.

Siparex Groupe, along with management and other investors, entered into exclusive negotiations to acquire the company from listed private equity firm Groupe IDI³. Headquartered in Paris, Winncare designs and manufactures medical beds, therapeutic cushions and hospital furniture. It has production facilities in France and business units in five countries. Winncare sells primarily to nursing homes and hospitals, with the new investment expected to boost growth through the development of cross-selling initiatives and geographic expansion.

Glovo, the Spanish delivery app, raised £383.08 million in its series F funding round led by New York-based investment managers Luxor Capital Group and Lugard Road Capital⁴. Glovo will use the funds to expand its Q-Commerce unit, which is responsible for its quick-delivery services and grocery operations, as well as “dark stores” – small warehouses Glovo uses to fulfil orders from retailers. Glovo estimates that the Q-Commerce network enables it to make deliveries in its biggest cities within 10 minutes⁵. The fundraising is the largest ever for a Spanish start-up and reflects the significant growth potential in the online delivery sector. The last month has been particularly busy within the delivery sector, with Gorillas in Berlin, Everli (formerly Supermercato24) in Italy, Getir in Turkey, and Rohlik in the Czech Republic collectively raising approximately £665 million⁶.

CA Healthcare Acquisition Corp, a U.S.-based SPAC, has agreed to acquire LumiraDx Limited, a next-generation point of care diagnostics testing company based in the UK⁷. Upon closing, LumiraDx and its common shares are expected to trade on Nasdaq. Among other products, LumiraDx has developed a high sensitivity COVID-19 antigen test that is currently being deployed globally in partnership with governments, healthcare systems and retail chains. Its key customers include the Bill and Melinda Gates Foundation, CVS Pharmacy and the UK’s National Health Service. According to Bloomberg, this is the largest SPAC deal for a healthcare company in the past year⁸. The deal is expected to strengthen LumiraDx’s presence in the point of care testing market, while also supporting increased production and ongoing R&D efforts.

KPS Capital Partners, LP has agreed to acquire an 80% stake in the European Tinplate Business of US industrials group Crown Holdings⁹. The European Tinplate Business comprises 44 manufacturing facilities across Europe, the Middle East and Africa, which produce food and aerosol cans among other items¹⁰. The deal follows KPS’s investment in the aluminium rolling business of Norsk Hydro in March, underscoring KPS’s track record and advantage in the sector, as well as the ongoing opportunity in carve-outs of European divisions from large industrials.

Infracapital has agreed to acquire a majority stake in EnergyNest, the global market leader in thermal batteries¹¹. The funding will support EnergyNest’s rollout of its thermal batteries, designed to store energy in the form of heat and decarbonise industrial processes. Given the EU’s target to reduce CO2 emissions by at least 55% by 2030, and various other ambitious carbon reduction targets around the world, this investment will help EnergyNest to meet demand for long-term energy storage solutions in what is estimated to be a €300 billion-plus market¹².