FT : German online listings company Scout24 explores €5bn sale

German online listings company Scout24 explores €5bn sale
US buyout group Silver Lake expected to be among bidders

Scout24, the German online listings company, is exploring a sale that may see the business taken private for more than €5bn just three years after it attained a public listing. 

The Munich-based company has been working with advisers for weeks as a number of private equity firms weigh bids for the business, which is best known for its ImmobilienScout24 home listings and AutoScout24 car listings across Europe.

Silver Lake, the US technology focused buyout group, is expected to be among the bidders with the most serious interest. In May, the firm bought the UK company behind the property search website Zoopla in a £2.2bn all-cash deal. 

A sale to private equity would mark one of Germany’s biggest leveraged buyouts in years and come as the buyout industry, armed with billions in dry power, is hunting for ever larger deals. It is not certain that the process will result in a sale, according to people close to the situation. A spokesperson for Scout24 declined to comment.

Scout24 was previously owned by Hellman & Friedman, which acquired a controlling stake from Germany’s Deutsche Telekom in 2013, listed the business in 2015 and finally exited its remaining stake earlier this year.

Shares in the company, which closed with a market value of €3.87bn on Thursday, have risen 6.6 per cent over the past year. However, they are off 24 per cent since their high in July. It has net debt of €857m. 

Applying a normal takeover premium of 20-30 per cent, a deal for Scout24 would see the company valued at more than €5bn including debt. 

A deal at that size would surpass the value of last year’s €4.1bn takeover of German generic drugmaker Stada, which was acquired by Bain Capital and Cinven.

In its most recent financial results, Scout24 reported sales of €385.9m in the nine months to the end of September, an increase of 11 per cent from the same period a year ago. Its earnings before interest, tax, depreciation and amortisation climbed 14.3 per cent to €196m in that time. 

This week the company named two new independent directors to its board. The move followed last month’s announcement that Tobias Hartmann had taken over from Gregory Ellis as its new chief executive, earlier than had been originally expected.

At the time Hans-Holger Albrecht, Scout24 chairman, said: “I am delighted that we were able to make the transition at the top management level of Scout24 six weeks earlier than planned and wish Tobias Hartmann every success and all the best for his start.” The company employs about 1,200 people.

Earlier this year, Scout24 agreed to pay €285m for finanzcheck.de, a site that offers comparisons on consumer loans in real time.

WSJ : LVMH Close to Deal for Hotel Operator Belmond

LVMH Close to Deal for Hotel Operator Belmond
French luxury-goods company’s bid would value Belmond at about $2.6 billion

French luxury-goods company LVMH Moët Hennessy Louis Vuitton SE LVMUY 0.63% is close to a deal to acquire Belmond Ltd. BEL -1.78% , a London-based owner and operator of high-end hotels around the world, according to people familiar with the matter.

LVMH is near an agreement to pay $25 a share in cash for Belmond, a transaction that would value the company’s equity at around $2.6 billion, these people said. That bid would represent a more than $7 premium to where Belmond shares closed Thursday on the New York Stock Exchange.

Belmond’s enterprise value, including debt, would be about $3.2 billion, said people familiar with the offer.

The Paris-based luxury-goods company, which owns fashion brands like Fendi and Louis Vuitton and champagne maker Dom Pérignon, would be a surprise winner in a highly competitive sales process. For weeks, Middle Eastern and Asian government funds, big hotel brands and private-equity firms have dominated the bidding, say people familiar with the process.

But LVMH now looks poised to prevail, and an announcement could come as early as Friday, these people said. The French company’s shares closed at €255.85, up €1.50, or 0.59%, on Thursday in Paris.

A Belmond sale would be the latest sign that luxury travel is booming after an extended downturn, when many leisure travelers and businesses shunned paying up for high-end accommodations.

The hospitality company has full or partial stakes in virtually all of its 36 hotels, making it one of the last hotel operators to own most of the properties its manages. The hotels include Cipriani in Venice, the Grand Hotel Europe in St. Petersburg, Russia, and the Copacabana in Rio de Janeiro.

After years of spurning all takeover offers, the Belmond board announced in August that it had initiated a strategic review that effectively put the company up for sale. Belmond’s share price has soared more than 50% since the announcement.

Founded as Orient-Express Hotels, the business became a stand-alone company in 2000 and changed its name to Belmond in 2014. It also offers luxury train rides, including the Venice Simplon-Orient-Express, river cruises in Europe and Asia, and owns the venerable '21' Club restaurant in New York City.

For LVMH, an acquisition of Belmond would expand its reach in the luxury world and greatly increase its position in the hospitality business. The luxury-goods company has the Bulgari hotel brand and Cheval Blanc, a collection of luxury properties.

>>> What to look at today -14th of December 2018

Asian stocks fell with U.S. equity futures as caution returned to global markets, with data showing continued weakness in China’s economy. The yuan dropped with the Aussie, while the yen edged higher with Treasuries.
Shares in Hong Kong and Japan bore the brunt of declines as equities fell across the region, though some losses were pared as the session progressed. Futures on the S&P 500 Index sank and the yuan dipped as a slew of Chinese economic data reinforced worries about the country’s slowdown. Japanese bonds ticked higher even as the central bank pared purchases at a regular operation for the first time since June, in the wake of the recent slide in yields.
US After Hours SBUX / COST -3%, ADBE -1.4% following earnings/guidance

Nikkei -2.02% Hang Seng -1.62% CSI -1.55% Shanghai -1.41% Shenzen -2.39%

Eur$ 1.1350 CNH 6.8895 CNY 6.8878 JPY 113.57 GBP 1.2614 CHF 0.9946 RUB 66.3915 TRY 5.3673 WTI$ 52.26 -0.59%

S&P -0.69% EuroStoxx -0.55% FTSE -0.84% Dax-0.65% SMI -0.66%

Macro :
- European Car Sales Slump for Third Month With No Sign of Rebound
- Citigroup Says Buy Global Stock Dip as Earnings Worries Overdone
- German Govt Wants to Tighten Rules for Foreign Takeovers: WiWo
- Goldman Still Prefers Strong Balance Sheets Amid Credit Concerns

Keep an eye on :
- AGS BB : Ageas Fails to Have FSMA’s Miscommunication Ruling Overturned
- AD NA : Ahold Delhaize’s AH To Go, Thuisbezorgd Cooperating in Amsterdam
- AIR FP : BOC Aviation to Purchase Two Airbus A350-900 Aircraft
- AJAX NA : Ajax Says CFO Jeroen Slop to Leave at End of Season
- AZN LN : Astra Study Suggests Combo Benefits Patients With More Mutations
- ATL IM : Cerchiai Intends to Resign From Autostrade Board
- AUTN SW : Autoneum Cuts 2018 Ebit Margin View on Restructuring Costs
- BKIA SM : Bankia Readies Sale of EU3B Real Estate Portfolio: Confidencial
- DIA SM : DIA to Propose Garcia-Legaz as New Chairman: El Confidencial
- DUFN SW : Dufry Wins New Five-Year Duty Free Concession at Kuwait Airport
- ELIO FP : Bertrand Corp. Stake in Elior Rises to 5% as of Dec. 7: AMF
- ELIS FP : Elis Announces Acquisition of Curantex
- GALP PL : Galp Plans to Invest EU45.2m at Its Sines Refinery Until 2023
- O2D GY : ZTE German Telefonica Deal to Expire at End-2018: Handelsblatt
- G24 GY : Germany’s Scout24 Exploring Potential Sale: FT
- GFS LN : speculation that its cash-handling business may attract bids after it’s split off
- GIVN SW : Givaudan in Talks to Buy Albert Vieille in Fragrance Expansion
- SHBA SS : Handelsbanken Has Closed 20% of Its Finland Branches, DI Says
- HNL GY : Dr Hoenle Full Year Ebit EU30.7 Mln
- ISR GY : Isra Vision Full Year Revenue EU152.5 Mln
- MC FP : LVMH Close to $2.6 Billion Deal to Acquire Belmond, WSJ Reports
- MGGT LN : Meggitt FY Consensus Too Low; Citi Says Buy on Civil Improvement
- MBTN SW : Meyer Burger Cuts 2018 Ebitda Target on Margin Pressure
- NG/ LN : National Grid Faces Potential Finl Penalty Enforcement Action
- NOKIA FH : Deutsche Telekom Re-Evaluates Purchasing After Huawei’s Troubles
- NDA SS : Nordea Has Fallen Behind on Cost Cuts, Gardell Tells Talouselama
- OVS IM : Retail Apocalypse Crushes BC Partners’ Clothing Company in Italy
- RI FP : Pernod Shares Imply 43% Likelihood of Elliott Success: Jefferies
- RNO FP : Ghosn’s Pay at Renault Found Compliant as Nissan Divide Widens --> 7201 JP -0.48%
- RNO FP : Nissan Board Had Approved Ghosn’s Discretion on Board Pay: Asahi
- RNO FP : Renault Shd Split CEO/Chairman Roles: Proxinvest in Challenges
- ROTH FP : French CAC Index Unchanged in Review; Rothschild to Join SBF 120
- RPS LN : RPS Group Held Takeover Talks With Charterhouse: FT
- SAB SM : Intrum Buys Banco Sabadell’s Real Estate Servicer Solvia
- SAL IM : Salini Ready to Pay Panama Obligations, Has Cash Available: CFO
- SFER IM : Salvatore Ferragamo Names Alessandro Corsi New CFO
- SCYR SM : Sacyr Says Panama Court Ruling Will Have No Impact on Results
- ALSEN FP : Sensorion’s Seliforant Meets Tolerability Main Goal in Study
- STAN LN : Standard Chartered Cuts More Than 200 Jobs in India: Reuters
- SOFTOXME NO : Softox Solutions to Offer Up to 680k Shrs NOK22/Shr
- SEV FP : Suez Has Been Picked by Toulouse for Water Contract, Debon Says
- TLG GY : TLG: Total Property Portfolio Value to Exceed EU4b as of Dec. 31
- ZURN SW : Zurich Again Proposes Jasmin Staiblin for Election to Board

>>> Europe : Brokers Upgrades & Downgrades - 14th of December 2018

>>> Up
* Lundbeck Upgraded to Overweight at Barclays; PT 335 Kroner
* Meggitt Upgraded to Buy at Citi

>>> Down
* Cellnex Downgraded to Equal-weight at Barclays; PT 26 Euros
* Equinor Downgraded to Sell at Goldman; PT 230 Kroner
* GAM Holding Cut to Underperform at MainFirst; PT 2.50 Francs

>>> Initiation
* Applus Rated New Outperform at BBVA; PT 14 Euros
* AstraZeneca ADRs Rated New Buy at SunTrust; PT $48
* Bayer Reinstated at Morgan Stanley With Overweight; PT 82 Euros
* Glaxo Rated New Hold at SunTrust; PT 38 Pence
* Leoni Reinstated at MainFirst With Neutral; PT 34 Euros
* Roche Reinstated Overweight at Morgan Stanley; PT 307 Francs

>>> Call

>>> Albert Vieille in exclusive talks to be acquired by Givaudan

Albert Vieille in exclusive talks to be acquired by Givaudan
14 DEC 2018
Givaudan S.A. [VTX:GIVN], today (14 December), announced it has entered exclusive negotiations to acquire Albert Vieille SAS. Financial terms were not disclosed.
Press release:
Expanding capabilities in natural ingredients for the Fragrance Division
As part of its 2020 strategy to expand the capabilities of its fragrance business, Givaudan today announces that it has entered into exclusive negotiations to acquire Albert Vieille SAS, a French company specialised in natural ingredients used in the fragrance and aromatherapy markets.
Albert Vieille has unique know-how in the realm of aromatic plants and specialises in 100% pure essential oils and speciality natural ingredients. The natural ingredients are used for the formulation of perfumes and aromatherapy products.
With its origins dating back to 1920, and with more than 50 employees, Albert Vieille is based close to Grasse, in France, and has a manufacturing facility in Spain, with its products sold globally through a network of distributors. They source their raw materials across the world, where fragrant crops are harvested and have developed over many years strong capabilities in natural ingredients sourcing and processing.
Gilles Andrier, CEO of Givaudan said: “Acquiring Albert Vieille will fit nicely with our 2020 strategy to enrich Givaudan’s palette with novel in-house natural ingredients that our perfumers will use to offer best quality and creative solutions to our customers. This acquisition will also allow us to enter the market of essential oils for aromatherapy, which will contribute to our 2020 strategy for ‘health and well-being’. It is another step in reinforcing our presence in Grasse, where the perfumery know-how has recently been awarded World Heritage Status by UNESCO.”
Maurizio Volpi, President of Givaudan’s Fragrance Division said: “Albert Vieille will bring to Givaudan the expertise to further develop and vertically integrate our natural capabilities. We will combine our existing know-how with those of Albert Vieille to meet the needs of our customers who are facing an increasing demand from consumers for more natural and sustainable fragranced products.”
While terms of the deal will not be disclosed, Albert Vieille’s business would have represented approximately EUR 30m of incremental sales to Givaudan’s results in 2017 on a proforma basis. Givaudan plans to fund the transaction from existing resources. The transaction is expected to close in the first quarter of 2019.