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Consumer Cyclicals
Large Cap
Market Cap £52.58bn
Enterprise Value £55.64bn
Revenue £12.46bn
Position in Universe 18th / 847

German lens maker Rodenstock prepped for 1.5 bln euro sale - sources

Wed 3rd February, 2021 1:52pm
By Arno Schuetze
    FRANKFURT, Feb 3 (Reuters) - German ophthalmic lens and
eyewear maker Rodenstock is being prepared for sale by its
private equity owner in a potential 1.5 billion euro ($1.8
billion) deal, two people close to the matter told Reuters. 
    Compass Partners, which is working with investment bank
Jefferies  JEF.N  on the divestiture, is expected to send out
initial information packs on the company in coming weeks with an
auction to kick off as early as after Easter, they said. 
    Rodenstock could be valued at 1.5-1.7 billion euros, or more
than 13 times its expected 2021 earnings before interest, tax,
depreciation and amortization of 115-130 million euros, one of
the sources said. 
    Compass Partners, Rodenstock and Jefferies declined to
    Rodenstock competes with companies like France-based
EssilorLuxottica  ESLX.PA  and Japan's Hoya  7741.T . Possible
buyers include strategic as well as private equity bidders, the
sources said. 
    Last year, the company received a 75-million-euro capital
injection from its owners to cope with a sales slump during the
coronavirus pandemic, after it had posted 2019 core earnings of
103 million on sales of 450 million euros.
    Revenues then recovered faster than expected on strong
demand for its high quality progressive-addition lenses,
Rodenstock said in June. 
    The company, which also makes spectacle frames and equipment
for opticians, was founded in Munich in 1877 and employs 4,900
    Following financial difficulties, Rodenstock's family owners
sold the company to buyout fund Permira in 2003, who passed it
on to Bridgepoint in 2006. Compass acquired a majority in
Rodenstock in 2016 and two years later took full control.
    Compass had initially planned to launch a sales process in
2020, but did not pursue the plan as the pandemic dented
Rodenstock's sales.
    ($1 = 0.8322 euros)

 (Reporting by Arno Schuetze; Editing by Pravin Char)
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