26 November 2020
Silverfleet announces sale of 7days
Silverfleet Capital, the leading Pan-European private equity firm, has agreed the sale of 7days, a leading supplier of modern and innovative medical 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 provides a wide range of high-quality products to more than 300,000 medical professional customers across 12 countries, including Germany, Austria, Switzerland, France, Belgium, the Netherlands and Scandinavia.
Silverfleet’s mid-market fund invested in 7days in January 2018, having identified the potential to consolidate a highly fragmented medical workwear market, and achieve long-term growth and expansion through a successful buy & build strategy. Supported by the macro dynamic of ageing populations, one of five ‘megatrends’ that drive our investment theses, the projected increase in global healthcare expenditure and medical workforce numbers underpinned Silverfleet’s conviction in the sustained growth of the medical workwear market.
Since then, Silverfleet has supported 7days’ acquisition of Denmark-based Praxis Herning, expanding its geographic reach significantly, and helped the company grow its online sales capabilities across all regions, whilst implementing internationally recognised ethical supplier and production standards. 7days is now 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.
With its fully integrated multi-channel sales platform, 7days has experienced stable and anti-cyclical growth, both domestically and internationally. Throughout Silverfleet’s ownership of just under three years, 7days has proved not only to be resilient during the current COVID-19 pandemic, but also to successfully enter and grow in new markets. Today, the company employs 240 staff across four locations, and is forecast to generate revenues of over EUR 40 million in 2020, a CAGR of 19% under Silverfleet’s ownership.
Joachim Braun, Partner at Silverfleet Capital, said: “We would like to take the opportunity to thank 7days’ management team for the trusting relationship over the past three 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 the company 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 demonstrated not only its robustness throughout a global pandemic, but also its ability to grow sustainably above market averages.”
Ulrich Doelken and Carsten Meyer, CEO and CFO of 7days, added: “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. 7days continuously strives to provide the best-in-class medical workwear for healthcare professionals, and, looking to the future, we are thrilled to continue this journey with our new partners.”
The Silverfleet team working on the transaction included Joachim Braun, Partner, and Benjamin Hubner, Principal, both based in Silverfleet’s Munich office. 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).