Article
Lenders Pitch Recap Options to Astorg After Failed Sale of Solina; Sponsor Focused on Add-On Acquisitions
Direct lenders and banks are pitching Astorg with dividend recapitalization solutions for its French ingredients maker Solina after the withdrawal of a sale process last week, sources told Octus.
Nonbinding offers from rival private equity firms showed the valuation gap was between €500 million and €1 billion, sources said.
Astorg therefore decided to continue with its growth strategy and expects to close add-on acquisitions early in 2026, after which the sale could be relaunched, the sources added.
The sponsor is not actively looking for a dividend recap as it is focused on executing on this business strategy as a core priority, another source said.
However, in the interim lenders are pitching a debt-funded dividend deal and could add up to 2x of second lien or PIK debt to the existing senior debt or maximize leverage through a new senior debt package, sources said.
The business was marketed off forward-looking EBITDA of around €330 million while reported EBITDA is about €290 million, as reported. Lenders were structuring the deal off EBITDA in between the two figures and pitching leverage ratio of between 6.5x and 7x during the auction, as reported.
Solina has around €1.4 billion-equivalent of senior debt across its euro and dollar term loan Bs, which were repriced in January, as reported.
|
03/31/2025
|
EBITDA Multiple
|
|||
|---|---|---|---|---|
|
(EUR in Millions)
|
Amount
|
Maturity
|
Rate
|
Book
|
|
|
||||
|
€171.5M Senior Revolving Credit Facility due 2028
|
–
|
Jan-2028
|
|
|
|
€920 million First Lien Term Loan B due 2028 1
|
920.0
|
Jul-2028
|
EURIBOR + 3.500%
|
|
|
$603 million First Lien Term Loan B due 2029 2
|
521.0
|
Mar-2029
|
EURIBOR + 3.250%
|
|
|
Total Senior Debt
|
1,441.0
|
4.4x
|
||
|
Total Debt
|
1,441.0
|
4.4x
|
||
|
Less: Cash and Equivalents
|
(82.0)
|
|||
|
Net Debt
|
1,359.0
|
4.1x
|
||
|
Operating Metrics
|
||||
|
LTM Reported EBITDA
|
330.0
|
|||
|
|
||||
|
Liquidity
|
||||
|
RCF Commitments
|
171.5
|
|||
|
Plus: Cash and Equivalents
|
82.0
|
|||
|
Total Liquidity
|
253.5
|
|||
|
Credit Metrics
|
||||
|
Gross Leverage
|
4.4x
|
|||
|
Net Leverage
|
4.1x
|
|||
|
Notes:
Cash is estimated. RCF Assumed to be undrawn. LTM Reported EBITDA is estimated pro forma EBITDA. 1. €135 million Fungible Incremental 1L TLB in January. 2. $185 million Fungible Incremental 1L Term Loan B due 2029 in January |
||||
Solina was acquired by Astorg from Ardian in May 2021. It bought Saratoga Food Specialties in November 2022, according to the sponsor’s portfolio page. The business was founded in 1988, and currently services more than 18,000 customers. Solina specializes in designing and producing customized ingredient solutions for a wide range of clients in the savory food industry, according to its website.
This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.