The sale of Danish home furniture group Muuto is forging ahead with management presentations expected to commence in the coming weeks and both local and non-Nordic mid-market sponsors are showing interest in the asset, said a source close to and two sources familiar with the transaction.
Banks are expecting to offer all-senior loan packages around the 3x leverage mark while some funds could stretch up to the 4x mark for unitranches, according to the two sources familiar.
The group is being marketed with an expected 2017 EBITDA of above DKK 120m (cEUR 16m), said the source close.
Muuto’s rapid growth and general dependence on consumer spending are, however, reasons for financiers to be cautious, the two sources familiar noted.
EBITDA hiked from DKK 53.2m in 2015 to DKK 77.8m in 2016, an increase of 46%, according to company accounts. Muuto generated EBITDA of DKK 42.5m in 2014, DKK 27.9m in 2013 and DKK 16.7m in 2012.
Danish small-cap private equity house Maj Invest acquired 45% of the equity in Muuto in 2014. A 3x levered debt package provided by Jyske Bank backed the transaction, said the source close.
Muuto’s founders Kristian Byrge and Peter Bonnén retained the remaining shares.
The sale of Muuto is expected to be completed in December, according to the source close.
FIH Partners is advising Maj Invest on the auction.
Muuto was founded in in 2006 and sells furniture, lamps and related accessories. The group operates a network of more than 1,300 distributors in more than 50 countries.
Maj Invest and Muuto declined to comment.