Pan-European private equity firm Silverfleet Capital has agreed to sell its majority stake in 7days, a German supplier of workwear for the healthcare industry, to a consortium of private equity firms, Chequers Capital and Paragon Partners, generating a 3.1x gross money multiple.
Completion of the transaction is subject to regulatory approval and is expected by January 2021.
Founded in 1999 in Lotte, Germany, 7days is a leading supplier of modern and innovative medical workwear. 7days designs, produces and offers a wide range of high-quality products ranging from tunics to lab coats to more than 300,000 medical professional customers in 12 countries, among them Germany, Austria, Switzerland, France, Belgium, the Netherlands and Scandinavia.
Due to a fully integrated multi-channel sales platform, which combines active catalogue marketing with a strong focus on e-commerce, as well as a vertically integrated business model with diversified sourcing and its own design and CSR[1]-compliant production capabilities, 7days has experienced stable and anti-cyclical growth, both domestically and internationally. Today, the company employs 240 staff across 4 locations and is forecast to generate revenues of over EUR 40 million in 2020, a 19% CAGR under Silverfleet’s ownership.
7days is a certified member of the amfori BSCI (Business Social Compliance Initiative), which focuses on improving social standards in global value creation chains, and adheres to the BSCI Code of Conduct for fair and social production.
Silverfleet invested in 7days in early 2018 out of its mid-market fund. With the market for medical workwear highly fragmented, Silverfleet identified great potential for sustainable, long-term growth and expansion into new markets, and therefore designed and implemented a successful transformation and internationalisation strategy for the company. As part of this strategy, 7days acquired Denmark-based Praxis Herning, a supplier of medical workwear for the Scandinavian markets in December 2018, expanding 7days’ geographic reach significantly. In addition, over its hold period of just under three years, Silverfleet supported the company in growing its online sales capabilities and implementing internationally recognised CSR supplier and production standards.
Joachim Braun, Partner at Silverfleet Capital, says: “We would like to take the opportunity to thank Ulrich Doelken and Carsten Meyer, CEO and CFO of 7days respectively, for the trusting relationship over the past years. 7days is a typical example of a Silverfleet investment: a leader in a niche market with potential for operational transformation and international expansion, strong USPs and an experienced management team. We are very pleased to have been able to support them on their growth journey and to help develop 7days as a leading and innovative European provider of high-quality and fashionable medical workwear. We are delighted to now leave the business in such capable hands for its further future growth.”
Benjamin Hubner, Principal at Silverfleet Capital, comments: “We have taken a number of important steps to expand the market-leading position of 7days, both organically and through a strategic acquisition. 7days has proved not only to be resilient, in particular during the current Covid-19 pandemic, but also to grow sustainably above market averages.”
Ulrich Doelken and Carsten Meyer, CEO and CFO of 7days, add: “In recent years, we have managed to position ourselves very favourably in the European market for medical workwear by significantly improving our online sales channels, targeting new customer segments based on their individual requirements and expanding into the Scandinavian market through a targeted strategic acquisition. This would not have been possible without the support of Silverfleet Capital, which we are very thankful for. 7days continuously strives to provide the best-in-class medical workwear for healthcare professionals in order to achieve the highest customer satisfaction levels. Looking to the future, we are thrilled to continue this journey with our new private equity partners, Chequers Capital and Paragon Partners.”
The Silverfleet team that worked on the transaction included Joachim Braun and Benjamin Hubner. Silverfleet was advised by William Blair (M&A), PwC (Financial, Tax, ESG), Latham & Watkins (Tax), McDermott (Corporate Legal), Shearman & Sterling (Banking Legal), and goetzpartners (Commercial).
