Babcock Wanson's sale process kicks off with lender education meetings

Babcock Wanson, the French industrial boiler manufacturer, is back on sale after a COVID-19-induced hiatus. The sellside held lender education meetings at the beginning of this week, according to sources, and first-round bids are expected in late January.

DC Advisory is conducting the sale process, it was reported.

The incumbent debt is roughly €30 million, one of the sources said. In May 2016, FCDE (Fonds de Consolidation et de Développement des Entreprises) bought the company, with Kartesia acting as sole mezzanine financing provider and minority shareholder in the acquisition.

The company has relatively flat margins but has proven to be resistant to cycles, one of the sources commented, and it could interest bank or debt fund financing, at roughly 4.5x leverage for the former and 5x for the latter.

The company is being marketed off EBITDA of €11 million, it was reported.

Operating in France, the U.K., Spain, Italy, Portugal and Poland, Babcock Wanson is a player in the design and manufacturing of industrial boilers and associated services. Its products are manufactured at two production sites — one in Nérac, France, and the other in Cavenago, Italy.