Thom Europe hires advisers for $1 bln-plus sale or IPO - sources
30/11/2016 16:04
By Pamela Barbaglia and Martinne Geller
LONDON, Nov 30 (Reuters) - The owners of jewellery retailer
Thom Europe have hired banks to advise on a potential sale or
initial public offering (IPO) that could value the company at
more than 1 billion euros ($1.1 billion), sources familiar with
the matter told Reuters.
The Paris-based business, majority-held by European private
equity fund Bridgepoint, has picked Rothschild and Goldman Sachs
for a "dual-track" process next year to look at both a sale and
an IPO, the sources said, speaking on condition of anonymity.
Thom Europe in June reported annual earnings before
interest, tax, depreciation and amortisation (EBITDA) of 117
million euros, one of the sources said.
The appointment of advisers follows Reuters' exclusive
report last month that the company was interviewing banks as it
looks to expand across Europe. urn:newsml:reuters.com:*:nL1N1CY0F7
Created from the 2010 merger of French chains Histoire d'Or
and Marc Orian, Thom has about 1,000 directly-operated stores in
France, Italy, Germany and the Benelux where it sells various
jewellery brands.
The company, which recently took over rivals Stroili in
Italy and Oro Vivo in Germany, employs more than 5,000 people
and has been backed by France-based Apax, Altamir ALMP.PA and
Qualium Investissement since 2010.
Thom said in October those purchases would give it proforma
annual sales in excess of 620 million euros.
Officials at Thom Europe, Bridgepoint and Apax declined to
comment while Goldman Sachs, Rothschild, Altamir and Qualium
Investissement were not immediately available.
Thom, which also operates e-commerce sites, could be valued
at about 10 times its core earnings, two of the sources said,
reflecting industry multiples.
One of them said the process was more likely to result in a
sale than an IPO because capital market conditions remain tough.
The company - which operates in the market for affordable,
rather than luxury goods - is expected to draw interest from
other private equity funds, who could take over from Bridgepoint
and Apax and help drive expansion.
($1 = 0.9422 euros)
(Reporting by Martinne Geller; Editing by Mark Potter)
((martinne.geller@thomsonreuters.com; +44)(0)(2075420797;
Reuters Messaging: martinne.geller.reuters.com@reuters.net))
Keywords: THOMEUROPE M&A/