Teufel owner Naxicap expected to bring home speaker maker to market in 2H – sources

20 May 2021 - 02:02 pm UTC

Patrick Costello, Deane McRobie, Ryan Gould and Barbara Pianese

Naxicap is readying Germany-based audio-equipment maker Teufel for a sale that could launch as early as the second half of this year, six sources familiar with the matter told Mergermarket.

 

The Paris-based sponsor has held discussions with potential advisers but is yet to award a mandate, according to one of the sources.

 

DC Advisory is likely to be appointed, four of the sources said.

 

A move to sell Teufel would follow a bumper year for the producer of headphones, soundbars and home cinema gear, three of the sources said.

 

The company is expected to be marketed off EUR 40m EBITDA, four of the sources said. Its EBITDA is forecast to rise to EUR 47m next year, a source added. Another source suggested the company’s revenue and EBITDA are around EUR 200m and EUR 30m, respectively.

 

Naxicap could aim to fetch a 13x-15x EBITDA multiple for the asset based on its 2021 figures, one of the sources said. Financial sponsors or family offices would be logical buyers for the firm, this source continued.

 

Teufel reported EUR 23.2m EBITDA on the back of EUR 116.5m revenue in the financial year to 30 June 2019, according to its most recently available filings. It had around 217 employees and generated nearly all its revenue in the German-speaking DACH region and the Netherlands, the same filings state.

 

Naxicap acquired Teufel from Hg in 2018 for an estimated deal value of EUR 138.85m, according to Mergermarket data.

 

The company’s development has been “quite good” over the last three years, one of the sources said. Its performance in the fourth quarter of 2020 was “phenomenal” and the best in its history, a sector banker commented.

 

Founded in 1979, Teufel is a manufacturer of high-end audio equipment for the home such as speakers, headphones, soundbars and home cinema gear. The company largely sells directly to end customers via its own website and operates a network of six stores in Germany and Austria.  

 

Its direct-to-consumer business model will be seen as an e-commerce success in light of the coronavirus pandemic, the sources said. Still, because Teufel’s performance was so impacted by COVID-19, its equity story is up in the air and will depend on how it builds on the success of this past year, the third source said.

 

Naxicap and DC Advisory declined to comment. Teufel did not respond to requests for comment.