• Handful of sponsors remain in competitive process
• EV cutoff 14x-15x EBITDA for NBOs
• Leverage pitches hover around 5x EBITDA

A handful of sponsors are vying to acquire A. Eberle as the sale process for the German energy measurement and control technology firm advances, seven sources familiar with the situation said.

Around four or five private equity firms have been admitted to the auction’s second round, including midmarket sponsor EMZ Partners, the first six sources said. ESG-focused investor Summa Equity has also advanced to the next stage, according to the first four sources.

In addition, Bregal Unternehmerkapital (BU) is among the parties to advance to round two, the first three sources plus the fifth source said. Berlin-based sponsor Capiton has also stayed in the running, according to the first and second sources.

Non-binding offers (NBOs) for A. Eberle were collected in December following a highly competitive first round in which a wide range of PE firms were potentially looking to table an offer for the privately held firm.

The valuation cut-off for sponsors to proceed to round two was high, and successful NBOs for A. Eberle came in at an EV/EBITDA multiple of at least 14x-15x EBITDA, the fourth and fifth sources said. The company was expected to command a valuation multiple in the double-digit EBITDA range given tailwinds in the energy sector.

Sellside advisor Case Cassiopeia is marketing the firm off around EUR 10m FY25 EBITDA, implying an enterprise value (EV) of at least EUR 140m-EUR 150m for offers admitted to round two. The business posted EUR 9m-EUR 10m in EBITDA and EUR 35m in sales in FY24, Debtwire previously reported.

While the process for A. Eberle continues to be competitive, it is not being run on an aggressive timeline, nor is it expected to conclude quickly, the second and seventh sources said. Due diligence is likewise just getting underway with second-round bidders, the fifth and seventh sources noted.

Bidders are nonetheless reaching out lenders to line up buyout financing as the auction proceeds, the second and seventh sources, plus an eight and ninth source said. The sellside is not organising lender-education sessions, and sponsors are approaching financiers independently to gauge indications, the second source added.

Some private credit funds could consider leveraging the firm at around 5x-5.5x EBITDA, the second, seventh and eighth sources said, implying a potential debt quantum of around EUR 50m-EUR 55m.

Bank pitches are coming in closer to around 4.5x EBITDA, the eighth source added, noting that some private credit pitches could stretch past 6x as a result in order to remain competitive.

This news service previously reported that lenders including private credit providers were keen to offer buyout financing for A. Eberle, with unitranche financing potentially the more likely outcome as pitches were shaping up to be “aggressive”.

While lenders generally like the company, A. Eberle is on the smaller side, and financiers will likely look for proof it can grow in its niche market in preparing their offers, the ninth source said.

The firm’s voltage-monitoring and management technology is used in energy-grid expansion and feeds into decentralised energy-generation trends, this publication previously reported. Much of A. Eberle’s continued momentum will also hinge on these infrastructure developments as a result, the eighth source noted.

Nuremberg-based A. Eberle supplies energy suppliers and industrial companies with advanced measurement and control technologies that regulate voltage and enhance the reliability and availability of energy networks, according to its website.

Bregal Unternehmerkapital declined to comment. Case Cassiopeia, A. Eberle, Summa Equity, EMZ and Capiton did not respond to requests for comment.