Lucrative sale to Thermo
Zug – “HBM has done a great job!” according to analyst Stephan Vollert from Sal. Oppenheim, who lauded the sale of German portfolio company Brahms AG. The Swiss venture capital specialist cashed in net proceeds of about a85m, freeing the Zug-based company of its worries on how to pay back a convertible bond in early 2010. Brahms was sold for a330m to global lab supply multi Thermo Fisher Scientific Inc. (see page 21). The US company agreed to pay 4.4 times Brahms sales (around a75m) and 22 times the company’s EBITDA (a15m). “These multiples demonstrate that M&A deals take place at good, reasonable prices,” says Vollert in his analysis. HBM invested just a4.1m in Brahms in August of 2005, making the diagnostic specialist one of the most lucrative investments in HBM’s history, with an investment multiple at the end of the deal of 21.6x. As a consequence, Vollert lifted the firm’s fair value from CHF50 to CHF57, and gave HBM stock a buy recommendation.