31 January 2023
Takeover offer for Va-q-Tec
EQT Private Equity, together with co-investors Mubadala and Cinven, recently made an offer for Va-q-Tec. EValuation Capital Management is, through the EV Micro Companies Growth Fund, shareholder in Va-q-Tec.
EQT Private Equity, together with co-investors Mubadala and Cinven, has launched a cash offer for the entire company at a price of €26.0 per share. This is a 98% premium to Va-q-Tec’s average share price in the three months prior to this announcement and a 46% premium to its closing price prior to this announcement.
EQT, a large private equity party operating under the wings of the Swedish Investor AB, purchased Envirotainer mid-2022. Envirotainer is a worldwide player in so-called active (i.e. with electricity) insulation and cooling applications for, among others, the pharmaceutical industry. Va-q-Tec is also active worldwide, but in the field of passive (i.e. without electricity) insulation and cooling applications with their own patented vacuum insulation panels. EQT intends to merge the businesses of Envirotainer and Va-q-Tec in pharmaceutical refrigeration solutions. The other activities of Va-q-Tec in the field of integrated products for buildings, refrigerators, freezers and heat supply, among other things, will be transferred to the new entity Va-q-Tec 2.0.
EQT intends to declare the offer unconditional upon registration of at least 62.5% of the shares. At that time, EQT will initiate a 10% capital increase of new shares at €26.0 per share, or €35 million, to fund the future growth of Va-q-Tec.
We do not find the offer convincing enough in terms of valuation given the excellent growth prospects of Va-q-Tec. It should be taken into account that the price of Va-q-Tec also suffered from the poor stock market sentiment in recent months and, according to the manager, was now strongly undervalued. For EQT, this acquisition is of enormous strategic value, creating a market leader in the field of temperature-controlled air cargo containers; and with which important synergies can be achieved. In addition, the other activities (which will eventually be put into a separate company) are very promising and also represent a value.
However, the families of the founders of Va-q-Tec’s have already indicated that they will tender the majority of their 25.8% stake. The Management Board and Supervisory Board of Va-q-Tec are also sympathetic to the offer. EQT aims to delist Va-q-Tec, which may complicate the position of minority shareholders after the offer has been declared unconditional.
Amsterdam, 23 January 2023
On behalf of EValuation Capital Management
Profile EValuation Capital Management
EValuation Capital Management is the fund manager of the EV Smaller Companies Fund and EV Micro Companies Growth Fund and is supervised by the AFM and DNB. It has an experienced investment team which, in addition to the founders Charles Estourgie and Willem de Vlugt, consists of Dirk Verbiesen, Patrick de Pont, Nils ten Berg and Henri-Jan Staal.