Triton preps Polygon exit in Jefferies-led process – sources

20 January 2021

Triton Partners is preparing to exit portfolio company Polygon, a Swedish property damage control specialist, through a sale process led by Jefferies, four sources familiar with the situation said.


The process timeline is not yet clear, two of the sources and a fifth one said. It is planned for the first half of this year, two of them added.


Polygon’s LTM EBITDA is in the region of EUR 90m, two of the sources said. The company recorded EUR 677m FY19 revenue, with EUR 81.3m adjusted EBITDA and EUR 44.3m EBITA. Germany is Polygon’s biggest single market, with the company generating approximately half of its revenue there in FY19.


The COVID-19 pandemic and European travel restrictions could affect the timeline of the process, two of the sources said. However, since it is a service business, physical site visits are not necessary and travel restrictions should not hinder the process if the sponsor wants to proceed, one of them added. The business is overall not impacted by the pandemic, the other source said.


Polygon is expected to attract sponsor interest, three of the sources said. EQT  is among those interested, one of them said. Polygon would be a good fit for EQT’s portfolio company Recover Nordic, this and another of the sources said. However, a merger between Polygon and Recover Nordic could raise antitrust concerns, one of the sources said. 


There are no obvious trade buyers for Polygon, one of the sources said.


Polygon is an attractive asset for another sponsor as the European market is still fragmented, affording plenty of consolidation opportunities, one of the sources said. While there are other similar sized players, there are no pan-European providers, this source added. As a non-cyclical company, it is also resilient to economic downturns, this source said. 


It makes sense for Triton to exit now as the reconstruction and restoration sector is hot with plenty of sponsor interest for such assets, a sector banker said. 


Recent sector deals in Europe include the acquisition of Bautrocknung Schmittgall (BTS), a German water damage restoration company by ARTUS, a German damage restoration services provider backed by Odewald KMU II, in October; and the merger of svt Holding, a Germany-based passive fire protection and restoration management company backed by Ergon Capital Partners, and French competitor Odice in September. 


EQT acquired Recover Nordic from Agilitas in 2019. Both Recover Nordic and Polygon have been actively consolidating the market. 


Polygon’s latest acquisitions include German property damage restoration companies RecoSan and SMD Sanierungs-Management in January and December, respectively; and RENOVO Brand- und Wasserschadensanierungs, an Austria-based provider of water and fire damage restoration in November. It made five acquisitions in 2020 and seven in 2019, according to Mergermarket records


Polygon was acquired by Triton in 2010 as a spinoff from Swedish industrial air quality solutions provider Munters. It offers restoration services for water and fire damage, as well as climate solutions. 


Triton, Polygon and EQT declined to comment. Jefferies did not respond to a comment request.