Engineering Group - comment
The sale of Alfahealth to Accenture is a positive for the bonds; it will materially deleverage Engineering and offer an exit for Bain. We estimate the two businesses represent €60m of EBITDA, with a sale multiple of 10x => €600m sale proceeds. This would reduce leverage from 4.2x to 2.5x and push interest cover beyond 3x. The remaining Engineering Group business has a revenue of about €1.5bn and an EBITDA of €220m, with leverage of 2.5x; this would be an easier package to float or sell.