H.I.G. WhiteHorse Provides Growth Capital to Risparmio Casa

H.I.G. Europe

LONDON – April 29, 2019 – H.I.G. WhiteHorse, a credit affiliate of H.I.G. Capital, a leading global private equity and alternative assets investment firm with over €26 billion of equity capital under management announced today that it has provided a growth capital solution to Risparmio Casa, a leading Italian drugstore chain based in Pomezia, Italy.

Established over 30 years ago by the Battistelli family, the company has exhibited strong growth and industry-leading performance with 2018 revenues in excess of 350 million Euros. Risparmio Casa operates over 100 locations with an average area of more than 2,500 sqm, resulting in a dominant presence in Northern and Central Italy and Sardinia. Its leadership is grounded on a commercial strategy of every-day affordable prices and a unique and broad product assortment, offering its customer base a wide range of personal care, household and non-food products.

With this transaction, H.I.G. will support the Battistelli family in continuing to strengthen the company’s leading position in the Italian drugstore industry and achieve its growth plans.

Guido Lorenzi, Principal at H.I.G. WhiteHorse, commented: “This transaction demonstrates H.I.G. WhiteHorse’s willingness to invest in and support leading Italian companies in cooperation with entrepreneurial families. H.I.G. is delighted to partner with Risparmio Casa and the Battistelli family, committing its resources, experience and network to support the next stage of growth of the company”.

Fabio Battistelli, co-founder of Risparmio Casa, commented: “We have built Risparmio Casa into one of the most established players in the Italian retail drugstore market and are looking forward to further consolidating our leadership position and strengthening our company”.

Stefano Battistelli, co-founder of Risparmio Casa, commented: “We welcome H.I.G. WhiteHorse into Risparmio Casa, which will be instrumental in supporting the next phase of our growth, building upon our existing strengths and value proposition”.

About H.I.G. WhiteHorse
H.I.G. WhiteHorse is the credit affiliate of H.I.G. Capital focused on providing flexible debt financing solutions to middle market companies in Europe and the United States. Operating a broad investment mandate, H.I.G. WhiteHorse provides unitranche, senior and subordinated debt capital for refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalizations. Credit facilities typically range from €10 million to €75 million for companies with revenues of €40 million or more. For more information, please refer to the WhiteHorse website at: www.higeurope.com/whitehorse.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over €26 billion of equity capital under management.* Based in Miami, and with European offices in London, Hamburg, Madrid, Milan, Paris, and U.S and Latin American offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Stamford, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of €30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.

Contact:

Guido Lorenzi
Principal
glorenzi@higcapital.com

H.I.G. WhiteHorse
10 Grosvenor Street
London W1K 4QB
United Kingdom
P. +44 (0) 20 7318 5700
F. +44 (0) 20 7318 5749
www.higeurope.com/whitehorse

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GBfoods enters exclusive final negotiations with CVC Fund V to acquire Continental Foods

Continental Foods owns portfolio of iconic local consumer brands such as Liebig, Royco, D&L, Erasco and Blå Band.

GBfoods, a food company headquartered in Spain, announced today that it has entered into exclusive final negotiations with CVC Fund V following a firm offer made by GBfoods for the acquisition of the European group Continental Foods.

Continental Foods was established in 1933 as a division of the Campbell Soup Company and was acquired by CVC Fund V in 2013. With a turnover of around 400 million euros and a team of over 1,000 employees, it operates in five key European markets: Belgium, where also its HQ is located, France, Germany, Sweden and Finland. Continental Foods owns a portfolio of iconic local consumer brands such as Liebig, Royco, D&L, Erasco and Blå Band, among others, with a long heritage and brand awareness among consumers.

Commenting on the transaction, Ignasi Ricou, CEO of GBfoods, said: “GBfoods is delighted to have entered into exclusive final negotiations for the acquisition of Continental Foods. Continental Foods is a great group of very similar culture to GBfoods, complementary markets, local culinary brands, a long heritage and a great team.”

Steven Buyse, Partner at CVC Capital Partners, added: “We are proud of the transformation that the management team at Continental Foods has realised under CVC Fund V’s ownership. Continental Foods is a fantastic company and would be a great addition to GBfoods, who share the same passion for local brands.”

The GBFoods was advised by AZ Capital, PWC, and Clifford Chance. CVC Fund V was advised by UBS, ING and Cleary Gottlieb Steen & Hamilton LLP.

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The Carlyle Group Acquires 10% stake in Chinese home textile company Luolai Lifestyle Technology

Carlyle

Shanghai, China – Global investment firm The Carlyle Group (NASDAQ: CG) today announced that it has acquired a 10% stake in Luolai Lifestyle Technology Co., Ltd., a home textile company in China. Equity for the investment came from Carlyle Asia Partners V, Carlyle’s flagship $6.55 billion Asia fund focused on buyout and strategic investments across a range of sectors in Asia Pacific.

Founded in 1992, Luolai is a top player in China’s home textile industry. The company engages in the research and development, design, manufacture and sale of home textile products. Over the past 20 years, Luolai has established a retail network with almost 3,000 stores across 31 provinces and cities in China. It operates under its own brands, such as LUOLAI and LOVO, and has acquired and served as an agent for approximately 20 brands. Luolai was listed on the Shenzhen Stock Exchange in September 2009 (SZSE stock code: 002293).

Jason Xue, President of Luolai, said, “We are delighted to partner with Carlyle and look forward to leveraging the advantages of its global network and deep industry experience. We will work closely with Carlyle to execute new business strategies, further expand and grow our online and offline businesses, and capture future growth opportunities in China’s home textile industry.”

Nina Gong, Managing Director of Carlyle’s Asia Buyout advisory team, said, “Luolai is China’s top home textile provider with a strong and complimentary brand portfolio with high-quality products and an extensive store network. We believe that rising disposable income in China and the ‘consumption upgrade’ process will continue to deliver healthy growth in the home textile industry and for Luolai. We will leverage our expertise and portfolio in the consumer and industrial sectors to help the company expand its store network, enhance supply chain efficiency and brand equity.”

As one of the first and most active international private equity investors in China, Carlyle has invested more than US$9 billion of equity in over 100 transactions in China as of December 31, 2018.

* * * * *

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyles purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.

Press Contact:

The Carlyle Group

Tammy Li
Phone: +852 2878 5236
Email: tammy.li@carlyle.com

Citigate Dewe Rogerson

Linda Pui
Phone: +852 3103 0118/ +852 9700 0178
Email: linda.pui@citigatedewerogerson.com

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TPG-Led Consortium Invests in APM Monaco

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TPG Capital

HONG  KONG and BEIJING—17 April 2019 — TPG, a leading global alternative asset firm,  today announced that it has led a consortium of investors and reached a  definitive agreement to invest in APM Monaco (“APM” or “The Company”), a  leading contemporary jewellery brand, synonymous with the  chic of Monaco and South of France lifestyle. The brand originated in Monaco  and successfully grew a global footprint with a significant presence in Asia.  TPG and its partners will together acquire 30% of the company from its existing  shareholders. TPG is investing in APM through TPG Capital Asia, the firm’s  Asia-focused private equity platform. China Synergy is an investment platform  jointly set-up by TPG and CICC Capital, and Trail is a Paris-based European  private equity investment firm. The transaction is expected to close in a few  months. Additional terms were not disclosed.

“APM  Monaco’s team is proud and look forward to writing a new chapter of our brand  history. TPG Consortium is the ideal leading global partner to continue to  develop our contemporary luxury vision,” said Philippe Prette, founder and CEO  of APM. “TPG’s unique expertise in growing iconic brands and their belief in  our innovative products and business model makes them an excellent partner to  work with, and at the same time, China Synergy and Trail bring their respective  strengths in China and Europe. We look forward to the opportunities that lie  ahead of us as we expand domestically and globally optimizing our strengths  with their expertise while keeping the strong identity and values of the brand”.

APM started  as an original design manufacturer (ODM) for leading European distributors 37 years  ago. The Company relocated productions to China in 1992 and launched its own  jewelry brand APM Monaco 20 years later. Headquartered in Hong Kong, APM  combines contemporary luxury with fast retailing, two best-performing  categories, capitalizing on strong demand from an upcoming generation and  increasing lifestyle spending in China. With its in-house design experts, APM  is a pioneer in the fashion jewelry space with strong product innovation. By  the end of 2018, APM had approximately 200 stores in 26 countries.

“The  founders and management team of APM have successfully built a fashionable brand  that resonates well with consumers and has a loyal following. We are impressed  by the Company’s creativity, vision for the luxury industry, and values,” said  Chang Sun, Managing Partner, TPG China. “As investors, we are excited by the  opportunity to partner with dynamic entrepreneurs like Philippe to bring their  vision to the next level and look forward to working with the Company’s  management team to accelerate growth by leveraging our global resources. We are  also very happy to partner with China Synergy and Trail to accomplish this  deal.”

“This  is a perfect demonstration of the power of partnership,” said Ding Wei, CEO of  CICC Capital, “TPG, China Synergy, and Trail each contributes distinctive  competitive advantages and collectively bring irreplaceable value to the Company.”

“APM  Monaco’s transformation from a European company into an Asian-focused market  leader has been highly successful”, said Xavier Marin, Managing Partner of Trail.  “As the European member of the consortium, we are thrilled to partner with  Philippe and the whole management team to bring APM Monaco into the premier  global jewelry brand position.”

2019  marks TPG’s 25th year investing in Asia, since establishing its first  regionally-dedicated fund in 1994. Comprised of approximately 50 investment  professionals, the TPG Asia team pursues investments in a broad range of  industries, with a significant focus on consumer, financial services,  healthcare, and TMT/new economy.  Across  platforms, TPG has significant experience partnering with strong consumer  brands to build and scale their businesses. Select current and past investments  include Anastasia Beverly Hills, Cirque du Soleil, Ducati, Lenskart, Rodan +  Fields, and Viking Cruises, etc.

Natixis  acted as the exclusive financial advisor to APM Monaco on this transaction. LPA-CGR  and Paul Weiss acted as joint counsel of APM Monaco. Cleary Gottlieb Steen  & Hamilton acted as the legal advisor for the Consortium.

About TPG

TPG  is a leading global alternative asset firm founded in 1992 with more than $104  billion of assets under management and offices in Austin, Beijing, Boston,  Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow,  Mumbai, New York, San Francisco, Seoul, and Singapore. TPG’s investment  platforms are across a wide range of asset classes, including private equity,  growth equity, real estate, credit, and public equity. TPG aims to build  dynamic products and options for its investors while also instituting  discipline and operational excellence across the investment strategy and  performance of its portfolio. For more information, visit www.tpg.com.

About China Synergy

China  Synergy is an investment platform set-up jointly by TPG, the leading global  alternative asset firm, and CICC Capital. This platform targets investment  opportunities both in China and overseas that will benefit from the key trends  in the Chinese economy, underpinned by the sponsors’ strong cross-border  investment and business development capabilities.

CICC  Capital, a wholly owned subsidiary of China International Capital Corporation,  has become a leading private equity brand in China, and a significant player to  promote the transformation of Chinese economy.

About Trail

Trail is an independent European private equity investment  firm with over €750 million cumulated capital managed to date. With its two  strategic partners, Silk Road Fund and CICC, China’s preeminent investment  bank, Trail has set-up a first-of-its-kind investment platform across Europe  and Asia. Trail’s team helps high performing small and mid-size European  companies scaling up in size, scope and geographical boundaries with a specific  focus on China.  Trail is committed to  long-term, responsible and value-creating investment. It has three offices in  Paris, Luxembourg and Beijing.

 

Media Contacts

For TPG
Tracy Hu
thu@tpg.com

For CICC
Sherry Tan
tans@cicc.com.cn

For Trail
Christelle Alamichel
calamichel@gmail.com

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Ball Group sold to German private equity fund, and Axcel III can be closed

Axcel

Following a successful transformation of Ball Group, which produces and sells plus-size women’s clothing, Axcel has entered into an agreement to sell the business to a German private equity fund and can therefore close Axcel III.

With more than 100 concept stores in Northern Europe and the online platform zizzi.dk, Ball Group is among the fastest-growing brands in the international plus-size segment in Europe. The company posted revenue of just under DKK 600 million in the last financial year.

“The strategy has been to move from having several brands to being a focused retailer with its own stores and a significant online position. We’ve trimmed the business and focused on developing Zizzi, and we now have the right combination of an inviting store universe and a strong, fully integrated e-commerce platform. We’ve built a scalable business that has achieved 70% top-line growth over the last three years,” says Kuno Kildetoft, CEO of Ball Group.

“We’re working on being customer focused and have so far rolled out our international store and online universe in nine countries, primarily in Northern Europe. There has been high growth across channels, and we’ve been particularly successful in accelerating the development of our online platform. I’m now looking forward to seeing this positive development continue with the new owner and would like to thank Axcel for their help in bringing us so far,” Kuno Kildetoft finishes.

Asbjørn Mosgaard Hyldgaard, who has been responsible for the investment at Axcel since the standard sizes were divested in 2016, is also pleased with the management’s achievements and that new ownership is now in place:

“The fact that we’re now selling shows that we’ve been able to execute our plan to transform Ball Group into a leading player in the niche market for plus-size fashion. The results over the last three years are testimony to the outstanding job done by Kuno Kildetoft and his team, which has fully met our expectations. As owners, we’re very happy to see Ball Group continue its journey with its new owner and wish them all the best for the future.”

Ball Group is the 11th and final exit from Axcel’s third fund, which was established in 2005.

“It is with great satisfaction that we’re now closing Axcel III, which overall has been one of the stand-out performers among the European funds started in 2005,” says Christian Schmidt-Jacobsen, Managing Partner at Axcel.

Axcel and Ball Group were advised by Deloitte and Plesner.

About Ball Group
Ball Group was founded in 1988 as a privately owned company. In 2007, the business was purchased by the Danish private equity firm Axcel, which in 2016 decided to focus exclusively on the Zizzi brand, targeting the plus-size segment. Accordingly, the other brands were divested. The stores were run on a franchise model until 2018, when the remaining franchise stores were acquired by Ball Group.
Approximately 150 employees work at the company’s head office in Billund, Denmark.

About Axcel
Founded in 1994, Axcel is a Nordic private equity firm focusing on mid-market companies and has a broad base of both Nordic and international investors. Axcel has raised five funds with total committed capital of jst over EUR 2.0 billion. These funds have made 53 platform investments, with almost 100 major add-on investments and 43 exits. Axcel currently owns 10 companies with combined annual revenue of around EUR 930 million and some 4,000 employees.

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Eurazeo Brands completes investment in Q MIXERS

Eurazeo

PARTNERSHIP WILL FUEL Q MIXERS’ CONTINUED GROWTH
Paris, April 4th , 2019 – Eurazeo, a leading global investment firm with approximately €17 billion in assets
under management, is pleased to announce it has completed an investment in Q Mixers, a premium
carbonated mixer brand based in New York. This marks Eurazeo Brands’ fourth investment since May 2017,
and its first investment within food and beverage. In partnership with founders Jordan Silbert and Ben Karlin,
Eurazeo Brands has invested $40 million in Q Mixers, joining existing investors including First Beverage
Ventures.

Born in a Brooklyn kitchen in 2007, Q Mixers elevates the cocktail with mixers crafted to a high standard of
quality and sophistication. Q mixers pair the best ingredients with high carbonation to deliver a truly
spectacular drinking experience together with spirits or non-alcoholic alternatives. Today, Q Mixers is the
fastest-growing premium mixer brand in the United States, and the number one mixer brand among top
bartenders. Q Mixers come in a variety of innovative and classic flavors all made without artificial sweeteners
and are proudly served in thousands of the country’s leading restaurants, bars, and hotels. Consumers can
purchase Q mixers directly at grocery retailers nationwide.
Jordan Silbert, CEO and Founder of Q Mixers stated, “Over the past 12 years we have built an incredible
community that shares a fundamental vision: your mixer should be as great as your spirit. Together with
Eurazeo Brands we will build this company into the mixer brand of choice.”

“The US premium mixer market has reached an inflection point,” said Ben Karlin, President and CoFounder of Q Mixers. “Our growth is rapid and accelerating – but we are in the early stages of disrupting a category long dominated by brands that don’t resonate with today’s discerning drinkers. Premium penetration in mixers substantially lags spirits, and we expect high growth in the years ahead. We look forward to working with Eurazeo Brands and tapping into their expertise to scale our business and establish category leadership globally.”

Eurazeo Brands will provide Q Mixers with proven brand building, operating, and category expertise. The
investment proceeds will be used to accelerate Q’s marketing activities, including the continued development
of a strong consumer and influencer community, and to support Q’s rapid expansion within both the grocery
and on-premise channels.

As part of Eurazeo Brands’ investment in Q Mixers, Jim Goldman, senior advisor to Eurazeo and a seasoned
food and beverage executive with 30 plus years of experience building and leading brands, and George
Birman, a member of the Eurazeo Brands investment team, will join Q Mixers’ Board of Directors.
Jill Granoff, CEO of Eurazeo Brands, said, “Q has established itself early on as a differentiated and exciting
brand led by passionate and entrepreneurial founders and highly experienced sales leadership. Given the
tremendous growth opportunity within this category, we are excited to be partnering with Q and to be making
the first of multiple food and beverage investments at Eurazeo Brands.”
Eurazeo Brands aims to invest a total of $800 million in high potential U.S. and European consumer
companies with differentiated brands across a wide range of verticals including beauty, fashion, home,
wellness, leisure and food.

About Q Mixers
Q makes the world’s best carbonated mixers – spectacular beverages crafted with authentic ingredients, more carbonation and much less sugar to perfectly complement the world’s finest spirits and non-alcoholic alternatives. Our tonic water, ginger beer and other flavors are proudly carried by thousands of America’s best restaurants, bars and retailers including Whole Foods, Safeway, Kroger, Total Wine and Amazon. For more information please visit Qmixers.com. Follow on social media: @Qmixers, #HIGHBALLR.

About Eurazeo
Eurazeo is a leading global investment company, with a diversified portfolio of €17 billion in assets under management,
including nearly €11 billion from third parties, invested in over 300 companies. With its considerable private equity, venture capital, real estate, private debt and fund of funds expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its 235 professionals and by offering deep sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term.
• Eurazeo has offices in Paris, New York, Sao Paulo, Buenos Aires, Shanghai, London, Luxembourg, Frankfurt and
Madrid.

• Eurazeo is listed on Euronext Paris.
• ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA
ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA

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The Carlyle Group to Invest in TOKIWA Corporation through a Strategic Business and Capital Alliance

Carlyle

Tokyo, Japan – Global investment firm The Carlyle Group (NASDAQ: CG) today announced that it has agreed to invest in TOKIWA Corporation (TOKIWA), a global cosmetics company engaging in the research, development and manufacturing of cosmetic products through a strategic business and capital alliance.

Headquartered in Nakatsugawa, Gifu, TOKIWA has been established for more than 70 years and is well-known for its innovations in cosmetic formulations and componentry. TOKIWA has advanced research and development capabilities with more than 400 patents worldwide, and is a supplier to prominent beauty brands around the world. A steady supply of high-quality products and its agility to respond to rapidly growing market demand has enabled TOKIWA to develop a strong reputation among its business partners. The company is also well positioned to benefit from the rising demand and admiration for safe, quality “Made in Japan” cosmetic products, fuelled by a booming tourism market.

Through the alliance, TOKIWA will work with Carlyle to establish itself as a global leader in the cosmetics manufacturing industry. Carlyle will leverage its in-depth knowledge of the cosmetics and consumer industries, corporate management skills, as well as its global network, to support TOKIWA’s marketing efforts and brand positioning in the growing global cosmetics market and lay the foundations for the company’s business expansion. Carlyle will help TOKIWA and its partners achieve further growth, deliver value to consumers, and support TOKIWA to become a valuable global company that can continue sustained, long-term growth as indicated in the company‘s philosophy.

Hitomi Hibino, Executive Vice President of TOKIWA, said, “Since our founding, we have continued to change and innovate. With ‘Sustainable Innovation’ as our motto, we have always strived to turn our customers’ confidence into lasting trust. We are pleased to work with Carlyle, which has a proven record in Japan and will add impetus to our organization’s initiatives.”

Yusuke Watanabe, Director of the Carlyle Japan advisory team, said, “We are very pleased to have been chosen as TOKIWA’s strategic partner. We will work to enhance TOKIWA’s business operations, assist its marketing efforts, and expedite the company’s domestic and overseas expansion. We look forward to working with TOKIWA as the company continues to create ’beauty, emotion and joy‘ for its customers around the world.”

Equity for this transaction will come from Carlyle Japan Partners III, L.P., Carlyle‘s third buyout fund in Japan. As one of the first global players to enter the Japanese market, Carlyle has engaged in investment activities in Japan since 2000, with 25 investments.

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is acting as exclusive financial advisor to Carlyle, while Nishimura & Asahi is acting as legal advisor.

* * * * *

About TOKIWA Corporation

Company Overview

Name

TOKIWA Corporation

Establishment

July, 23, 1948

Head Office

3-20, Momoyamacho, Nakatsugawa, Gifu

Business Description

Research, development and manufacturing of cosmetics (for detail, please refer to the website:

https://www.tokiwa-corp.com/)

Key Subsidiaries

TOKIWA HOLDINGS AMERICA, INC. (US)

TOKIWA COSMETICS AMERICA, LLC. (US)

KUNSHAN TOKIWA COSMETICS CO., LTD. (China)

TOKIWA SUBIC CORPORATION (Philippines)

SONAX CORPORATION (headquartered in Saitama, Japan)

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.

The Carlyle Group is the only global investment firm that has dedicated Japan buyout funds denominated in Japanese yen. Carlyle’s Japan buyout funds, which have made 25 investments in Japan, have experience supporting Japanese companies’ business expansion overseas, enhancing their operational efficiency and strengthening their management infrastructure.

Press Contact:

The Carlyle Group
Tammy Li
Phone: +852 2878 5236
Email: tammy.li@carlyle.com

Ogilvy Public Relations Worldwide Japan
Yusuke Yamanaka, +81 (0)3-5793-2388
Abi Sekimitsu, +81(0)3-5791-8725
E-mail: CarlylePress.Tokyo@ogilvy.com

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Maesa enters next growth phase with Bain Capital Private Equity as its new partner

BainCapital

PARIS, NEW YORK, LONDON, March 28th, 2019 – Bain Capital Private Equity, a leading global private investment firm, has signed a definitive agreement to acquire a majority stake in Maesa, a global beauty brand incubator supplying leading retailers and beauty companies operating worldwide. Under this joint ownership of Bain Capital Private Equity and Maesa’s co-founders and management, the company will enter the next phase of its growth strategy.

Surpassing competition, Maesa has grown to be the leading global provider of beauty brand incubation and strategic outsourcing. By housing vertically integrated Marketing, Design, Engineering, Product Development and operations, Maesa provides customers unsurpassed speed to market providing exclusive products across the beauty industry including haircare, colour cosmetics, personal care and fragrance. Identifying white space opportunity globally, Maesa has incubated the creation of successful exclusive brands such as Kristin Ess Hair Care and Flower Beauty and partners with a wide range of retailers including Walmart, Target, Sephora, AS Watson, Ulta, Dollar General and H&M. It is Maesa’s unique model that combines the disciplines of designers, beauty merchants, consumer marketing and custom packaging development, which provides a truly differentiated and integrated service to its clients.

“We believe that Bain Capital Private Equity is the right partner to help us take Maesa into its next phase of growth as a global beauty supplier and beauty brand incubator” said Julien Saada & Gregory Mager, Co-Founders of Maesa. “Bain Capital Private Equity has a unique understanding and confidence in our long-term growth strategy, culture and people, bringing valuable global reach and expertise which will support us in our future growth plans”.

Bain Capital Private Equity has a distinguished track record of investing in and partnering with founders and management teams to accelerate the growth of companies. Its consumer and retail investments have included Bugaboo, Maisons du Monde, Sundial Brands, Virgin Voyages and Canada Goose. “The Bain Capital team has a long and successful history of working with founders to support the growth of differentiated business models that are leading change across their sectors,” said Nigel Walder, a Managing Director at Bain Capital Private Equity.

“Greg, Julien and the management team have built a remarkable business. We could not be more excited to partner with Maesa to continue to develop this innovative brand creation approach in an evolving beauty landscape.” said Miray Topay, a Principal at Bain Capital Private Equity.

Maesa is headquartered in New York, NY, USA and Levallois-Perret, France. Founded in 1997, Maesa has grown over the last 22 years to over 300 employees across seven offices globally and generates approximately over $230m in global annual sales. The founders and the management team of Maesa remain substantial shareholders alongside Bain Capital Private Equity and will continue to focus on driving the growth of the business, investing in leadership and developing talent. Andera Partners, a minority shareholder, will be selling its investment as part of the transaction. The team at Maesa thank Andera for their support.

The transaction remains subject to regulatory approval and is expected to complete in the first half of this year.

Maesa was advised by Financo. Bain Capital Private Equity was advised by Lazard and RBC Capital Markets.

About Maesa
Founded in 1997, Maesa is a global beauty brand incubator supplying leading retailers and beauty companies operating worldwide. Maesa designs and manufactures exclusive brands and private labels for mass, drug and specialty retailers and provide outsourcing solutions to beauty brands. In combining design, beauty merchant and production expertise under one roof, Maesa is a driving force in beauty brand incubation. For more information visit www.maesa.com.

About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of approximately 240
investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 19 offices on four continents. The firm has made primary or add-on investments in more than 760 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, managing approximately $105 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus. For more information, visit www.baincapitalprivateequity.com.

 

 

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A strong 2018 for Action: 23% sales growth and 230 stores added in 7 European countries

3I

Highlights 2018
(unaudited, amounts in € millions)
2018 2017 2018 vs
2017
Net sales 4,216 3,418 +23.3%
LfL sales growth1 3.2% 5.3%
Operating EBITDA2 450 387 +16.3%
Number of stores 1,325 1,095 +230
Number of employees3 46,000 41,000 +5,000

1 Calculated on stores open for more than 12 months 
2 Earnings before interest, tax, depreciation, amortization and non-recurring items
3 Number of employees as of 31 December, rounded in thousands

Sander van der Laan, CEO, commenting on the 2018 results:
2018 was another successful year for Action showing strong growth driven by 3.2% like-for-like sales growth and the addition of 230 stores. Our continued success underlines the strength of the Action customer proposition of a broad, surprising and ever-changing product range at the lowest price. During 2018, we have accelerated our pipeline of five new distribution centres (DCs) and invested in our organisational and supply chain infrastructure to support the strong growth of our customer proposition, store network and expansion into new countries. Action remains focused on its international growth strategy with the ambition to become a €10 billion sales company over the medium term.”

Adrian Bellamy, Chairman of the Board of Directors:

“The fundamentals of Action’s proposition and business model remain compelling. Action performed very well last year particularly considering the significant challenges facing many of the retail concepts across our markets, and I would like to express the appreciation of the Board to all our employees.  Action will continue to invest in growth and a more resilient supply chain to support this growth.”

Strong financial results

Action performed very well with strong sales growth across all countries. Consolidated net sales totalled €4,216 million, up 23.3% compared to 2017. Healthy like-for-like growth in all our markets resulted in an overall like-for-like sales growth of 3.2%. Operating EBITDA increased by 16.3% to €450 million from €387 million in 2017.

These results were achieved despite a very challenging year for the broader European retail industry – amongst others caused by exceptional weather in the winter, summer and fall of 2018 which affected customer footfall across the entire retail industry in Europe.

Sales were also impacted by a number of specific issues:

  • Operational challenges in our two French DCs which led to availability of stock issues in many stores during the second and third quarters of 2018.
  • The “Gilets Jaunes” protests in the second half of the year and railway strikes (20 days in the first half) which led to reduced sales growth at key times in France.
  • Weather-related delays to the delivery of our two most recent DCs in France and Germany; these DCs are now operational but their delayed opening resulted in a supply chain capacity shortage in the second half of the year which in turn led to a delay in opening 20 stores from quarter 4 2018 to quarter 1 2019 in France.

The supply chain situation is now stabilised and has resulted in a strong performance in France and elsewhere in the final months of 2018. Like-for-like sales growth increased in quarter 4 2018 to a healthy 4.4% overall (above the rate seen in the previous three quarters) with higher and stable stock availability seen across the French network of stores. Strong like-for-like sales growth continued during the first eleven weeks of 2019.

Our gross margin was impacted by stock clearance in two of our categories: Decoration and Garden & Outdoor. The stock level in these categories is now well-balanced.

Our operating expenditures were impacted by:

  • an incremental increase in transportation costs due to the delay in the opening of two new DCs.
  • start-up costs for new DCs.
  • a decrease in productivity of our stores due to the operational challenges in the supply chain.
  • the current labour market confronting us with higher hourly rates.
  • a significant step-up in IT and incremental investments to strengthen the capabilities in our commercial, planning and supply chain teams for future growth.

Following our recapitalisation in March 2018, Action de-geared from 5.5x EBITDA to 4.4x EBITDA during the remainder of the year, as a result of strong cash generation and continued profit growth.

International expansion

The Action customer proposition – a broad, surprising and ever-changing product range at the lowest price – continues to be extremely well received in all the markets in which we operate.

Last year, Action added 230 stores and renewed 48 stores. The majority of the new stores were opened in France and Germany. In Poland, the success of our six store pilot, started in 2017 led to the opening of an additional 19 stores in 2018. In 2019, Action will continue with its store roll-out programme in France and Germany and will accelerate its store growth rate in Poland.

Action accelerated its store renewal programme in the Netherlands and Belgium: 48 stores were refurbished, enlarged or relocated in 2018 compared to 27 the year before.

Continuing investment in the Action organisation and supply chain infrastructure

Action continues to invest for future growth with a substantial focus on the organisation and the supply chain infrastructure. Action is accelerating the roll-out of its DC network: Action currently has seven operational DCs including Belleville (F) and Peine (D), which started operations in early 2019. A further three DCs will open before the end of 2020 and will lead to a doubling of the number of DCs over a three year period. This investment will facilitate further store roll-out in existing and new countries.

The DC expansion is being accompanied by the roll-out of new IT systems to support end-to-end supply chain planning and a significant people investment in parallel areas of supply chain infrastructure

Number of stores on December 31,
by geography
2018   2017 2018 vs
2017
The Netherlands 378 367 +11
Belgium & Luxembourg 172 153 +19
Germany 288 216 +72
France 424 335 +89
Austria 38 18 +20
Poland 25 6 +19
Total 1,325 1,095 +230

Action Social Responsibility

Our Action Social Responsibility strategy consists of four building blocks: product, people, environment and citizenship. During 2018 we implemented several initiatives, for example:

  • Product: we finalised our policies for the sourcing of timber and cotton and for the use of chemicals and packaging materials and started the implementation with our suppliers. We increased our number of products with a sustainable quality label such as FSC, UTZ or Oeko-Tex. In addition, we started the phasing out of single use plastic products.
  • People: we created 5,000 jobs and now employ 129 different nationalities. In 2018, we had over 24,000 participants in our training programmes.
  • Environment: we recycle all cardboard and plastic transport packaging. All our new stores and distribution centres will be equipped with energy-saving lights. The new DC in Belleville is BREEAM certified and is equipped with a solar power plant on its roof.
  • Citizenship: as part of our partnership with SOS Children’s villages, we supported over 1,100 children in Asia. This number will be increased to over 1,300 for 2019.

 

Our annual brochure UPDATE 2018, with an extensive overview of Action in 2018, is now available to download at www.action.com/update2018

Download this press release  


About Action
Action is the fastest-growing international non-food discounter with 1,352 stores in the Netherlands, Belgium, France, Germany, Luxembourg, Austria and Poland. Action employs 46,000 people. In 2018 total sales were EUR €4.2 billion. Around one third of the more than 6,000 products Action offers is part of our standard range. The rest of the range is dynamic and changes frequently. Action introduces more than 150 new items every week.  Our product range consists of 14 categories: decoration, DIY, toys & entertainment, stationery & hobby, multimedia, household, garden & outdoor, laundry & cleaning, food & drink, personal care, pets, sports, clothing and linen. Action offers private labels and well-known brands. Action is able to charge extremely low prices due to its large scale and efficient purchasing, optimal distribution and the cost-conscious culture across the organisation. Action makes no concessions on the quality, safety or production conditions of our products. Our Action Ethical Sourcing Policy ensures a responsible social and environmental approach to manufacturing.

For further information (not for publication):

Action

Action: Yvette Moll
Tel +31 (0)228 31 17 64
Mail press@action.nl
www.action.com

 

ActionLogo_NEWmarch18.png

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Platinum Equity to Acquire Spanish Seafood Provider Iberconsa from Portobello Capital

Platinum

LOS ANGELES (March 7, 2019) – Platinum Equity today announced the signing of a definitive agreement to acquire a majority stake in Grupo Ibérica de Congelados, S.A. (“Iberconsa”) from Portobello Capital and affiliates of the company’s founding families. The sellers and members of the Iberconsa management team will be minority investors alongside Platinum Equity. Financial terms were not disclosed. The transaction is expected to close in Q2 2019.

Headquartered in Vigo, Spain, Iberconsa is a global provider of frozen seafood products, including hake, Argentine red shrimp and squid. The company is vertically integrated across the full value chain, including wild catch, processing, commercialization and distribution.

“Iberconsa has established itself as a leader in the markets it currently serves,” said Platinum Equity Partner Louis Samson. “The company has grown substantially in recent years and can benefit from Platinum’s operational expertise to help maximize the benefits of its increased scale. We also intend to further grow the business through new acquisitions by deploying our M&A resources to help the management team expand the company’s product portfolio and geographic reach.”

Iberconsa maintains an owned fleet of 45 vessels, five processing plants and four cold storage distribution facilities. Iberconsa’s fleet operates primarily in Argentina, Namibia and South Africa, and the company’s products are sold in more than 60 countries.

“Iberconsa has established itself as a leader in the markets it currently serves,” said Platinum Equity Partner Louis Samson. “The company has grown substantially in recent years and can benefit from Platinum’s operational expertise to help maximize the benefits of its increased scale. We also intend to further grow the business through new acquisitions by deploying our M&A resources to help the management team expand the company’s product portfolio and geographic reach.”

“We are proud of everything Iberconsa has accomplished during our ownership, expanding its fleet and establishing itself as a strong platform for additional growth in a fragmented market,” said Juan Luis Ramírez, Founding Partner at Portobello Capital. “We are re-investing in the business because we believe it is well positioned for continued success.”

Iberconsa CEO Alberto Freire will continue to lead the business following the transfer of ownership.

“We believe in the future of our company and are confident that Platinum Equity is the right partner to help us achieve the next stage of growth and expansion,” said Mr. Freire.

Platinum Equity’s proposed acquisition of Iberconsa is the latest example of the firm’s increasing momentum in Europe. Last year Platinum Equity completed the $2.1 billion acquisition of Zug, Switzerland and Chesterbrook, PA-based blood glucose monitoring company LifeScan from Johnson & Johnson. The firm also acquired Wyndham’s European vacation rental business for $1.3 billion.

Platinum Equity sold Exterion Media to British media and entertainment group Global in November 2018, and sold Paris-based Worldwide Flight Services to Cerberus Capital Management, L.P. in October 2018 in a transaction valued at approximately €1.2 billion.

Lazard and Deloitte are serving as financial advisors to Platinum Equity on the acquisition of Iberconsa. Latham & Watkins is serving as Platinum Equity’s legal advisor on the transaction.

Nomura and Ernst & Young (“E&Y”) are serving as financial advisors to the sellers. E&Y is also serving as the sellers’ legal advisor on the transaction.

About Platinum Equity
Founded in 1995 by Tom GoresPlatinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years Platinum Equity has completed more than 250 acquisitions.

About Portobello Capital
Founded in 2010, Portobello Capital is a leading independent Mid-Market Private Equity manager based in Spain that invests in Southern Europe. It has €1.3 billion of assets under management, a team of 27 professionals and 15 companies in its portfolio (Angulas Aguinaga, Centauro and Vivanta, among others). Portobello Capital manages two primary funds: Fund III was closed at €375 million in August 2014 and it is fully invested, and Fund IV closed in February 2018 and is currently being invested. Portobello Capital is also managing a secondary vehicle with €300 million.

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