TDR-Backed Modulaire Group Weighing Initial Public Offering
(Bloomberg) -- Modulaire Group, the European designer of modular work spaces that is backed by private equity firm TDR Capital, is weighing an initial public offering.
The company is considering its strategic and financing options, including a potential IPO, it said in a Tuesday statement confirming an earlier Bloomberg News report. The cost of insuring Modulaire’s debt dropped following the news. The company’s five-year credit default swaps fell 13%, the most since Nov. 17, according to ICE Data Services.
Goldman Sachs Group Inc. and Morgan Stanley are advising TDR, which may also explore a sale of Modulaire, according to people familiar with the matter. Modulaire could be valued at about 5 billion euros ($6 billion) in any transaction, the people said, asking not to be identified as the details aren’t public.
No final decisions have been taken on whether to proceed with any transaction, Modulaire said in its statement. Representatives for Goldman Sachs, Morgan Stanley and TDR declined to comment.
Modulaire designs modular buildings that can be rented for work and living, as well as portable storage units, across Europe and Asia. TDR acquired the company, then known as Algeco, in 2004 and has since grown it through a string of bolt-on transactions. During 2019 and 2020, Modulaire completed eight deals that in part helped it expand in the Nordic region, according to its website.
The company reported a 29% increase in revenue including acquisitions to 335 million euros for the third quarter of last year. Earnings before interest, taxes, depreciation and amortization rose 34% to 101 million euros, including acquisitions.
TDR is keeping busy with potential deals in Europe. It announced a bid for credit manager Arrow Global Plc Monday, and is part of a consortium bidding for Aggreko Plc in a takeover that could value the world’s biggest supplier of portable power generators at about 2.25 billion pounds ($3.1 billion).
©2021 Bloomberg L.P.