Windshield megadeal could fix Europe’s broken IPO window
Belron is the sort of business that might help investors warm up to more deals
While the Nasdaq and New York Stock Exchange fight to attract rocket companies and giant AI start-ups, one of the biggest hopes for Europe’s IPO market is a company that fixes car windscreens. Belron, owner of brands including Autoglass and Safelite, is considering an initial public offering in Amsterdam that could value it at around €30bn.
That might not spark as much excitement as SpaceX, but it’s important to walk before trying to run. IPOs are a risky business that rely heavily on how confident investors are feeling, and after a very long winter for European listings, Belron is the sort of business that might help them warm up to more deals.
For one thing, it is well known, and not just because of the catchy jingles on its adverts. Belron’s majority owner, Belgian conglomerate D’Ieteren, is already listed and publishes figures on Belron’s performance, so investors have years of data to judge and plenty of analyst coverage. Chief executive Carlos Brito, the former head of brewer AB InBev, is also a known quantity.
The US IPO market followed a similar pattern after a sharp slowdown starting in 2022, with a gradual reopening led by carve-outs from established companies such as Johnson & Johnson’s Kenvue and well-known groups like Arm.
Belron’s core business is also profitable and predictable. Windshield repair is not cyclical and, unlike some motor-related businesses, it should not be sent skidding by the growth of driverless cars. Instead, the increasing complexity of windshields — which now often contain special coatings and sensors — is leading to higher repair costs that boost Belron’s margins.
An attractive price would also help. An enterprise value of €30bn, including €8bn of net debt, would value it at around 17 times ebitda: relatively high by European standards, but less than what BlackRock paid when it invested in 2021.
The biggest potential stumbling block is that hefty debt pile. Belron completed the largest debt-funded dividend on record in 2024, borrowing €8.1bn. By June, it had brought its net debt down from 6 times ebitda to around 4.8 times, or 4.3 times using the company’s preferred adjusted figures. That is still too high for comfort for many public market investors.
It’s always helpful when investors can see that an IPO is more than just an opportunity for insiders to get out. Belron can help its chances by raising new funds too, and by avoiding the impression of being in a rush. After almost five years with only a handful of listings, bankers might love a quick deal, but Belron’s job is supposed to be strengthening windows, not breaking them.