Tag Archives: Consumer brands

The deal-by-deal team enters a partnership with management of Sumo

Hercules Capital

(Oslo, 17 November 2020) A company funded by a group of experienced restaurant investors and managed by Fredrik Kongsli and Fredrik T. Bysveen, has entered into an agreement with Sinco AS to acquire Sumo AS, Norway’s largest Asian fusion restaurant chain. With its playful Asian fusion concept, strong brand, and successful restaurants, Sumo represents a strong foundation for further expansion.
Sumo has established 9 successful restaurants in Bergen, Oslo, Stavanger, and Jessheim. The company has created an easy-to-like Asian fusion menu based on high quality ingredients. The company expects to generate a turnover in 2020 of approximately NOK 180 million. Despite the Covid-19 outbreak, Sumo has experienced a solid topline momentum in 2020, proving the strength of the concept and management team.

Simon Simonnæs, the CEO and previous majority owner, will together with other key employees retain 48% ownership after the transaction. “It has been our ambition to accelerate the expansion of Sumo both in Norway and abroad. Together with Kongsli and Bysveen and the highly experienced team of restaurant investors they bring, we will have the competence, capacity, and financial resources to accomplish this ambition over the next few years.”

“We are impressed by the outstanding track record, the strong culture and the enthusiasm in the organization. Sumo has a unique offering that makes people want to return again and again. The food is popular and the people working there are hands-on and genuinely service minded. In addition, Sumo is capturing the takeout trend and has been successful in building a popular brand through social media. We believe Sumo has a large potential for further growth both in Norway and abroad”, says Fredrik Kongsli.

Salsa Bergen AS will also be part of the transaction. Salsa is a successful Latin American restaurant located in Bergen that has rollout potential.

Closing of the transaction took place 17 November 2020.

Contact:
Fredrik Kongsli, Chairman Sumo & Salsa
Telephone: +47 98 01 22 51

Simon Simonnæs, CEO Sumo & Salsa
Telephone: +47 938 89 500

The buyer was advised by DLA Piper and PwC.

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KKR and Rakuten to Acquire Stakes in Seiyu from Walmart, Focus on Accelerating Digital Transformation of Japanese Retail: Seiyu Positioned to Become Japan’s Leading Omnichannel Retailer

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KKR

November 15, 2020

  • KKR to purchase majority stake and new Rakuten subsidiary to acquire minority stake in Seiyu
  • Walmart to retain 15% stake and work with KKR and Rakuten to accelerate Seiyu’s digital transformation to become Japan’s leading omnichannel retailer
  • The complementary retail expertise KKR and Rakuten bring, including track records of driving growth in e-commerce and digital marketing platforms across the globe, will help Seiyu become the local, innovative, value retailer of choice
  • This transaction reflects Walmart’s commitment to building strong, local businesses by bringing together the right parties in the right structure to meet unique market needs

TOKYO & BENTONVILLE, Ark.–(BUSINESS WIRE)– Walmart Inc. (“Walmart”), KKR & Co. Inc. (“KKR”) and Rakuten, Inc., (“Rakuten”) today announced the signing of definitive agreements under which KKR will purchase a majority stake and a new Rakuten subsidiary will purchase a minority stake in Seiyu GK (“Seiyu” or the “Company”) in a deal valuing the business at ¥172.5 billion (approx. $1.6 billion).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201115005157/en/

Under the terms of the agreements, KKR will acquire a 65% stake in Seiyu, and Rakuten will acquire a 20% stake, through a newly created subsidiary focused on retailer digital transformation. Walmart will retain a 15% stake in Seiyu. The new ownership structure enables Seiyu to take advantage of KKR, Rakuten and Walmart’s combined retail expertise and innovation as a standalone company and accelerate its digital transformation to further benefit both Seiyu’s customers and business partners.

KKR, Rakuten and Walmart are committed to supporting Seiyu’s growth and this unique ownership structure reflects a shared belief in Seiyu’s long-term strategy in Japan. Last year, Seiyu launched an ambitious strategy to accelerate growth through a more concerted focus on providing value, fresh produce and digital convenience to customers. The Company has already met or exceeded operational and financial goals across key areas, including market share, customer satisfaction, associate engagement and financial performance. Together, the three companies look to bring complementary strengths to build on Seiyu’s momentum and support its efforts to become Japan’s leading omnichannel retailer.

KKR and Rakuten’s investment in Seiyu is further intended to deliver a range of substantial benefits over time for the Company’s customer base, including:

  • Accelerated investment in digital channels to facilitate app-based shopping, payment and delivery services;
  • Introduction of new options for cashless payment;
  • Improved service experience across both online and offline channels; and
  • Enhanced product offering at everyday low prices to stay ahead of its customers’ shopping needs.

KKR will bring its deep expertise in the Japanese market to Seiyu, in addition to its decades-long track record of investing in the subsidiaries of large corporations and empowering them to unlock their potential as successful, independent companies. KKR will further leverage its sector and operational expertise to enhance Seiyu’s retail transformation efforts and will make available its network of advisors, portfolio companies and specialists to create value.

The new ownership structure builds on previously established collaborations between Rakuten and Walmart, including the popular Rakuten Seiyu Netsuper online grocery delivery service and Rakuten Group’s partnership with Walmart that includes ebook service support in the United States. Rakuten will further accelerate digital transformation of Seiyu and other Japanese retailers through its new subsidiary Rakuten DX Solution, leveraging its 100M+ membership base and technology.

Seiyu will continue to have access to Walmart’s global retail best practices, sourcing network and scale to maintain the price leadership and value it provides to customers.

Seiyu CEO Lionel Desclee will continue to lead the business through a transition period, after which he will take on a new role within Walmart. A new Board of Directors comprised of representatives from KKR, Rakuten and Walmart will be formed to focus decision making locally, and plans to appoint a new CEO following the close of the transaction.

Judith McKenna, President and CEO of Walmart International, commented, “This past year has been one of the most extraordinary in Seiyu’s rich 57-year history. Our associates have been exceptional, adapting brilliantly to serve customers at a time when they needed it most and outperforming against an ambitious transformation plan. We have been proud investors in this business over the past 18 years and we are excited about its future under the new ownership structure. Today’s announcement is important because its focus is on bringing together the right partners in the right structure to build the strongest possible local business. We look forward to supporting Seiyu’s growth and success, alongside KKR and Rakuten, as a minority investor.”

Hiro Hirano, Co-Head of Asia Pacific Private Equity and CEO of Japan at KKR, said, “KKR is pleased to invest in the success of Seiyu given the important role it plays in the lives of customers across the country. We are also excited by the prospect of working with Seiyu’s associates, who have dedicated themselves to supporting the business in spite of this year’s unprecedented challenges. We will focus on working closely with Seiyu’s management team and associates and leveraging the expertise of Rakuten and Walmart to enhance the customer experience, meet their ever-changing needs, and make shopping more accessible through digitalization. This investment is a true milestone for KKR in Japan and reinforces our commitment to the market as well as our continuing efforts to champion the long-term success of local businesses.”

Kazunori Takeda, Group Executive Vice President and President of Commerce Company, Rakuten, Inc., said, “By building on our successful partnership on Rakuten Seiyu Netsuper and our deep experience in online retail and data-based marketing, we look forward to accelerating digital transformation of Seiyu brick and mortar retail and further merging the best of offline and online retail to offer Seiyu customers the best possible OMO1 customer experience. The planned establishment of Rakuten DX Solution will also allow us to offer digital solutions optimized to transform retail at Seiyu and in new future partnerships with retailers across Japan.”

KKR is making its investment from its Asia private equity fund. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2021.

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,400 stores under 55 banners in 26 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting https://corporate.walmart.com, on Facebook at https://facebook.com/walmart and on Twitter at https://twitter.com/walmart.

About Seiyu:

Established in 1963, Seiyu is a nationwide supermarket chain in Japan with more than 300 retail units. Through its supermarket and hypermarket formats and Rakuten Seiyu Netsuper delivery service, Seiyu offers customers a broad assortment including fresh food, general merchandise, and apparel products across Japan from Hokkaido to Kyusyu. Offering EDLP to our customers, Seiyu contributes to making their everyday life more convenient as a leading, innovative, local value retailer powered by Walmart, its parent company.

About KKR:

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR Co.

About Rakuten:

Rakuten, Inc. (TSE: 4755) is a global leader in internet services that empower individuals, communities, businesses and society. Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded to offer services in e-commerce, fintech, digital content and communications to approximately 1.4 billion members around the world. The Rakuten Group has over 20,000 employees, and operations in 30 countries and regions. For more information visit https://global.rakuten.com/corp/.

About Rakuten DX Solution:

A new Rakuten Group subsidiary planned for establishment in January 2021 to support the digital transformation of brick-and-mortar retailers across Japan and to promote the merger of offline and online retail (OMO) in order to serve customers with a seamless and personalized retail experience.

1 OMO: “Online Merges with Offline” refers to breaking down the barriers between online services and offline brick-and-mortar stores in the retail space in order to provide customers with a seamless, personalized experience.

Walmart
Blake Jackson
+1 479 204-1028
blake.jackson@walmart.com

Seiyu
Miyuki Moriguchi
miyuki_moriguchi@walmart.com

KKR
KKR Asia Pacific
Anita Davis
+852 3602 7335
Anita.Davis@kkr.com

Finsbury (for KKR Japan)
Deborah Hayden, +81 70 2492 0463
Hannah Perry, +81 70 3769 9633
FinsburyKKRJapan@finsbury.com

KKR Americas
Kristi Huller, Cara Major, Miles Radcliffe-Trenner
+1 212 750-8300
Media@kkr.com

Rakuten, Inc.
Corporate Communications Department
global-pr@mail.rakuten.com

Source: KKR

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BC Partners to acquire leading European braintainment company Keesing from Ergon Capital and Mediahuis

Ergon Capital

13 November, 2020 – London, UK – BC Partners, a leading international investment firm,
has announced today that it has signed an agreement to acquire the leading European
braintainment business, Keesing Media Group (“Keesing”) from Ergon Capital and
Mediahuis.

Founded in the Netherlands over 100 years ago, Keesing has a presence in over 40
countries and is already the largest puzzle content developer in Europe. It owns a number of
market-leading brands and is also in the process of releasing new digital offerings which will
allow it to leverage its existing content to new audiences.
BC Partners is confident that Keesing is well positioned to benefit from the increased focus
on brain training and mental wellbeing. This investment will support ambitious growth plans
for the Company, which includes digital expansion as well as organic growth initiatives in its
existing countries (such as France, the Netherlands, Germany and the UK), as well as
ongoing consolidation of the European market and entry into new continents.
Terms of the transaction were not disclosed, and it is subject to customary regulatory
approvals.

Nikos Stathopoulos, Partner at BC Partners said, “Keesing has many of the characteristics
that we typically look for in our investments. It is the clear market leader in a sector with
proven resilience, with a strong management team and multiple opportunities for growth. We
are therefore looking forward to partnering with the Keesing team to utilise the business’
unique content and proprietary technology to extend its leadership in brain health.”
Pieter Lambrecht, Partner at Ergon Capital added: “It has been a privilege for us and our
partner Mediahuis to support Philip Alberdingk Thijm and the outstanding Keesing team over
the past years in their extraordinary growth story, thereby realizing 9 add-on acquisitions and
strengthening the strategic focus on brain health. We are convinced that Keesing will
succeed in its further global and digital expansion and believe BC Partners is an excellent
partner for the company’s next phase of growth.”

Philip Alberdingk Thijm, CEO of Keesing concluded: “We are very grateful and happy with
the tremendous support we have had from the Ergon team since our buy-out from the
Telegraaf Media Group in 2017. Today a new chapter begins with BC Partners. This next
phase in our transformational journey will allow us to further fuel our ambition to consolidate
our international print markets as well as expand our digital footprint across the world”.

Quore acted as financial advisor to BC Partners. Kirkland & Ellis served as legal counsel to
BC Partners.
ING and DC Advisory acted as financial advisors, and Baker McKenzie as legal counsel, to
the sellers.

Note to editors
About BC Partners
BC Partners is a leading international investment firm with over €27 billion of assets under
management in private equity, private credit and real estate. Established in 1986, BC
Partners has played an active role in developing the European buy-out market for three
decades and for over a decade in North America. Today, BC Partners executives operate
across markets as an integrated team through the firm’s offices in Europe and New York.
Since inception, BC Partners Private Equity has completed 117 private equity investments in
companies with a total enterprise value of over €149 billion and is currently investing its tenth
private equity fund. For more information, please visit www.bcpartners.com.

About Keesing Media Group
Keesing Media Group is the biggest braintainment company in Europe, producing more than
100 million puzzle books a year and offering ample online brain games. Since its foundation
by Amsterdam journalist Isaac Keesing in 1911, the company has grown into the market
leader in print, online and app puzzle formats. The company offers brain game fans all over
the world challenging and innovative concepts for the best puzzle experiences. The
company is headquartered in Amsterdam and has offices in 15 countries. Visit
www.keesing.com.

About Ergon Capital (“Ergon”)
Ergon is a mid-market investment company with over €1.0 billion of assets under
management from select European institutional investors and families. Ergon is a disciplined
and discreet value investor, which provides “patient and friendly capital” to entrepreneurs
and managers, who need capital, industrial or technological solutions to accelerate the
development of their companies. Ergon makes equity investments in leading companies with
a sustainable competitive position in attractive niche markets located in the Benelux, France,
Germany, Italy and Iberia. Ergon is advised by Ergon Capital Advisors which has offices in
Brussels, Paris, Munich, Milan, and Madrid.

Since its inception in 2005, over successive investment programs, Ergon has raised
approximately €2 billion, invested in 27 companies (of which 9 in the Benelux, 4 in France, 3
in Germany, 8 in Italy and 3 in Spain) and completed approximately 60 add-on acquisitions
for a total aggregate transaction value of over €4.5 billion. Ergon’s current portfolio consists
of 14 companies across its target sectors.

For more information on Ergon, please visit www.ergoncapital.com.

About Mediahuis
Mediahuis is one of the leading media groups in the Netherlands, Belgium, Luxembourg and
Ireland. As a publisher, Mediahuis unconditionally believes in independent journalism and
strong and relevant media making a positive contribution for man and society. From this
vision, Mediahuis is continuously investing in its strong brands, both printed and digital. With
about 3,900 employees, Mediahuis has an annual turnover of approximately 1 billion euro.
Since its creation in 2013, Mediahuis has built a highly diversified portfolio of news media
and digital brands. The national and regional news titles of Mediahuis deliver daily news to
more than 10 million readers, both digitally and in print. In addition to these news brands,
Mediahuis also operates a number of important digital marketplaces in Belgium, the
Netherlands, Luxembourg and Ireland, in particular in the domain of real estate, the job and
recruitment market and the automotive market.

Media contacts:
Keesing Media Group
Odette Akersloot
press@keesing.com
+31 6 1927 8365

BC Partners
Pro-bcpartners@prosek.com
+44 (0)777 181 0803
Ergon Capital
John Mansvelt
jm@ergoncapital.com
+32 2 213 60 96

Mediahuis Group
An Steylemans
An.steylemans@mediahuis.be
+32 473 55 71 48

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Mindful Chef finds new home with Nestle after 5x growth

Piper

We are delighted to announce that Mindful Chef has been bought by Nestlé. In a wonderful two-year journey since we invested £6m in December 2018, sales have increased fivefold to £50m.

It’s astonishing how something so special has been built in such a short period of time – school friends Giles Humphries, Myles Hopper and Robert Grieg-Gran only founded the company in 2015. Since then, it has delivered over 9.5 million meals to households across the UK and become the nation’s highest rated recipe box according to Trustpilot.

As the name suggests, it has come to embody a mindfulness about the suppliers it chooses, the healthy ingredients it uses, and the brand’s impact on the environment. As well as being a certified B-Corp, for every meal sold, a school meal is donated to a child living in poverty through the firm’s ‘One Feeds Two’ initiative, which has seen more than five million meals donated so far.

The brand’s focus on health and nutrition has also seen Mindful Chef appointed the official nutrition partner for the English Institute of Sport while its partnership with the British Heart Foundation aims to raise awareness of how a healthy, balanced diet can help support heart and circulatory health. Testament to this, Sir Andy Murray, Victoria Pendleton CBE and Will Greenwood MBE are among its legions of fans.

As a truly purpose-driven brand, we are proud to have backed a team that embody our own values. We love nothing more than finding great custodians for our partner brands and, in Nestle, they now have a lifelong partner that can help them achieve their mission of getting more people to eat healthily.

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Online supermarket Pieter Pot raises € 2.7 million to make circular packaging for groceries the norm

Shift Invest

The Dutch startup Pieter Pot raises € 2.7 million to meet the great consumer demand for sustainable alternatives to single use packaging. The ‘packaging-free’ online supermarket now serves the whole of the Netherlands and in total some 30,000 consumers have signed up for the waiting list. Also, major brands are partnering with Pieter Pot. The capital injection will be used to scale operations and develop Pieter Pot’s own circular packaging.

Online supermarket Pieter Pot raises € 2.7 million to make circular packaging for groceries the norm

 

Martijn Bijmolt (28) and Jouri Schoemaker (30) have been working for just over one year on the online supermarket with a circular packaging system that makes the sustainable choice also the convenient choice. Often, the sustainable option still takes too much effort, energy and money. “Pieter Pot changes this. Online delivery means that no one has to carry around jars (‘pot’ in Dutch) and the product range can be much larger than in physical ‘packaging-free’ shops. In addition, we offer our products at prices that are comparable to ordinary supermarkets,” says Schoemaker. “With our playful brand and jars that don’t need to be hidden, we show that it’s much more fun to go shopping without all the packaging waste.”

The approach gets traction. Last year Jouri and Martijn operated from an attic room and they served their city, Rotterdam, on a cargo bike. After a crowdfunding campaign that raised half a million Euros at the end of 2019, Pieter Pot is serving all of the Netherlands. A year later, the ambition has increased which gets noticed. Three impact-oriented venture capital funds, SHIFT Invest (also the party behind Vandebron), Future Food Fund and InnovationQuarter, together invest € 2.7 million in Pieter Pot. Janneke Bik, Peter Arensman and Tijl Hoefnagels on behalf of the investors: “It is impressive what Pieter Pot has achieved in a relatively short period of time. With this investment, they will be able to scale up operations, serve the tens of thousands of people on the waiting list and develop their own circular packaging. Every person in the Netherlands uses an average of around 25kg of plastic per year. Pieter Pot’s solution can make an important contribution to the reduction of single-use packaging and make circular packaging for groceries the norm.”

120,000 single-use packaging reduced

Pieter Pot is having an impact in two ways: reducing of packaging waste and decreasing the CO2 footprint of consumers. In one and a half years, 121,318 single use containers have already been saved. The impact of this is enormous, even compared with recyclable packaging. Alternative packaging, which potentially can be recycled, have a higher CO2 footprint than the circular jars of Pieter Pot. “Even if packaging gets recycled, it still costs a lot of energy. You can compare it to a bottle or a can of beer: bottles are the more sustainable option after they have been reused around 10 times”, says Schoemaker.

Haribo, Heinz and Ecover partner with Pieter Pot

More and more A-brands want their products in Pieter Pot’s circular packaging. The first big brands that are now also available in the jars of Pieter Pot are Haribo, Heinz and Ecover. In the near future, their products will be sold in new jars, especially designed by Pieter Pot. These jars will be more user friendly and lighter, giving them an even lower CO2 footprint.

About Pieter Pot

Pieter Pot is the first online supermarket to deliver ‘packaging-free’ groceries by filling products in reusable jars and delivering them to consumers. The jars contain food and non-food products from both the Pieter Pot private label and well-known A brands, from rice to sweets, from olive oil to shampoo. Empty pots are taken back to be washed and refilled; a circular process which reduces the large number of (plastic) packaging.

About SHIFT Invest

SHIFT Invest is a Dutch venture capital fund that invests in innovations in food & agriculture, clean (bio-based) technologies, circularity and smart materials. Through its investments, SHIFT strives to create environmental impact alongside financial return. Together with the fund partners, SHIFT offers entrepreneurs a broad network and knowledge of the sector. SHIFT is managed by New Balance Impact Investors (NBI), an experienced team of investment professionals and entrepreneurs. NBI manages five venture capital funds, backed by strong and involved partners that share their mission of turning investments into impact

About FutureFoodFund

Future Food Fund is a € 12m seed capital fund, founded and funded by 30 entrepreneurs. Mainly with a background in food&agri and technology, these entrepreneurs wish to actively contribute to the success of the fund, not only with money, but also with experience and network. Future Food Fund is aimed at Dutch companies that want to impact the food&agri sector with innovative technology and / or disruptive business models.

About InnovationQuarter

InnovationQuarter is the regional economic development agency for Zuid-Holland. InnovationQuarter invests in innovative companies from Zuid-Holland with growth ambitions, assists international companies in establishing themselves in this unique delta region and organises (international) cooperation between innovative entrepreneurs, knowledge institutions and the government. Together with the business community, InnovationQuarter develops Zuid-Holland into one of the most innovative regions in Europe.

As a lifecycle financier InnovationQuarter provides companies with financing in different phases of growth. InnovationQuarter invests from three funds: IQCapital, UNIIQ and ENERGIIQ.

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Eurazeo Brands announces its first european transaction with an investment in Swedish Brand Axel Arigato alongside its founders

Eurazeo

Paris, 9 November 2020
Eurazeo today announced an investment in Axel Arigato, a Swedish premium sneaker, ready-to-wear and accessories brand recognized for its contemporary design, high-quality products and creative brand universe. Eurazeo Brands, the division of Eurazeo focused on differentiated consumer brands, is investing €56 million to become a majority shareholder, alongside its Founders Max Svärdh and Albin Johansson. This marks Eurazeo Brands’ first investment in Europe and highlights its transatlantic ambition and coverage.

Founded in 2014 in Gothenburg, Sweden, Axel Arigato is a high-growth, digitally-native company that has quickly become a leading player in the European premium sneaker market. The Company’s main objective is to embrace the now and always look for the tomorrow, with strong cultural references including music, art and architecture. As a result of its differentiated value proposition relying on minimalist and modern design, superior quality and a sustainable approach, the brand’s revenues have almost tripled since 2016.

Axel Arigato built a successful multi-channel distribution strategy with a strong direct-to-consumer foundation. The large community that stands behind the brand is highly engaged thanks to the company’s event-driven marketing strategy, its “drop of the week” model and unique online content. Its products are distributed worldwide through its e-commerce website, major online marketplaces such as Farfetch, MyTheresa and Ssense, six Axel Arigato retail locations, and select prestige department stores such as Le Bon Marché, Harrod’s and Saks Fifth Avenue.

Leveraging its proven brand building, operating and consumer expertise, Eurazeo Brands will partner with Axel Arigato to support its growth, in Europe in particular, by investing in its digital and e-commerce capabilities, developing its retail footprint in major European cities and enhancing the brand’s sustainability positioning. In addition, Eurazeo will provide its CSR expertise and international network throughout Europe, Asia and the United States to support the brand’s development in key markets.

Laurent Droin, Managing Director of Eurazeo Brands, said:
We have targeted the high-end sneaker market due to the premiumization and casualization trends we are seeing globally and believe Axel Arigato is an innovative and high potential brand in this sector, relying on an authentic and contemporary designer-based approach. We are delighted to partner with Max and Albin, and we look forward to working with the company to accelerate its international growth, strengthen its digital platform and expand in retail – bringing this impressive brand to new customers worldwide.

Albin Johansson and Max Svärdh, Founders of Axel Arigato, said:
We are very proud of the company we’ve built so far. Axel Arigato has established a strong presence in the premium sneaker market and a strong connection with our customers, driven by our unique value proposition, diverse range of products and successful direct-to-consumer strategy. Choosing the best partner for Axel Arigato was critical to continuing our momentum – Eurazeo’s deep brand-building experience and international network are key to accelerating our growth.

About Axel Arigato
• Axel Arigato is a Swedish designer sneaker brand. Digitally native and founded in 2014 by two friends, Max Svärdh and Albin Johansson, in Gothenburg, the brand has a differentiated positioning thanks to superior quality, wide product offering, a design conveying Nordic minimalist culture as well as a fair perceived price point. The strong brand universe is rooted in a global lifestyle experience, which resonates with a large and engaged community globally. Axel Arigato’s international presence is established through a multi-channel distribution strategy, including own website and retail stores, as well a selective network of online retailers and wholesalers.

About Eurazeo
• Eurazeo is a leading global investment company, with a diversified portfolio of €18,5 billion in assets under management, including €12,9 billion from third parties, invested in over 430 companies. With its considerable private equity, real estate and private debt expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its nearly 300 professionals and by offering in-depth 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, Seoul, Shanghai, London, Luxembourg, Frankfurt, Berlin and Madrid.
• Eurazeo is listed on Euronext Paris.
• ISIN : FR0000121121 – Bloomberg : RF FP – Reuters : EURA.PA

EURAZEO CONTACTS

PRESS CONTACT

PIERRE BERNARDIN
HEAD OF INVESTOR RELATIONS
mail : pbernardin@eurazeo.com
Tél : +33 (0)1 44 15 16 76

VIRGINIE CHRISTNACHT
HEAD OF COMMUNICATIONS
mail: vchristnacht@eurazeo.com
Tel: +33 1 44 15 76 44
MAITLAND/amo
DAVID STURKEN
mail: dsturken@maitland.co.uk
Tel: +44 (0) 7990 595 913

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3i invests in MPM to accelerate international expansion

3I

3i Group plc (“3i Group”) announces that it has agreed to invest c. £125m alongside management for a majority stake in MPM, an international leader in branded, premium, natural pet food.

Headquartered in Manchester, UK, MPM was founded in 2002 and owns leading brands such as Applaws, Encore and Reveal. The company differentiates itself through its high quality, human-grade products, its natural, clean-label ingredients and its “cat first” proposition. MPM’s loyal customer base places great importance on its sustainable sourcing and recyclable packaging. It has an established presence in the UK, EMEA and APAC with a fast growing business in North America. International sales account for more than 60% of revenues. MPM has developed strong relationships with key retailers across pet specialist, grocery and online channels.

Over the past six years, MPM has grown consistently at double digit CAGR and is highly cash generative. The premium wet cat food market is large and is forecast to continue to grow at c. 7% p.a. The market has proven resilient through economic downturns and Covid-19, with pet ownership increasing amongst a highly engaged and loyal community for whom pets are seen as family members.

Rupert Howard, Director, 3i, commented: “We have been tracking MPM for a long time and are delighted to invest in this rapidly growing, resilient business. Owners looking to feed their pets natural, high quality food with recognisable ingredients are drawn to MPM’s brands across a variety of channels and geographies. MPM fits well with 3i’s desire to invest in strong mid-market businesses where we see significant headroom for further international growth. We look forward to supporting Julian, James and their excellent team with their ambitions.”

Julian Bambridge, CEO, MPM, added: “3i has a formidable track record in helping its companies to grow internationally, particularly in the US market. This will be especially key for MPM as we look to accelerate our expansion in North America. The 3i team also has significant brand expertise through a number of its consumer investments which will be of great benefit to MPM.”

-Ends-

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The Carlyle Group Acquires Leading Pet Health and Nutrition Provider Manna Pro Products from Morgan Stanley Capital Partners

Carlyle

NEW YORK – The Carlyle Group today announced that it has acquired a majority stake in Manna Pro Products (“Manna Pro”) from investment funds managed by Morgan Stanley Capital Partners (“MSCP”). Financial terms of the transaction were not disclosed.

Manna Pro, a St. Louis-based manufacturer and marketer of specialty pet care products, provides food, treats, and a wide assortment of high-quality health and wellness products for companion pets and hobby animals. With roots dating back to 1842, Manna Pro has a long history of excellence in pet nutrition. Today, Manna Pro has developed into an industry leader providing nutritionally wholesome products for dogs, cats, backyard chickens and other companion pets. A leader in the fields of pet health and nutrition, the Company is well known for its innovative product development and commitment to sustainable practices.

“We are grateful to have partnered with the extraordinary management team at Manna Pro during a period of tremendous growth as they advanced their position as a leading provider of pet health and nutrition,” said Aaron Sack, Head of Morgan Stanley Capital Partners. “During MSCP’s ownership, Manna Pro built on its long history with strong organic growth and benefited from several critical companion pet acquisitions, including Fruitables, Hero Pet and most recently Doggie Dailies, that expanded Manna Pro’s online presence and created opportunities to reshape the supply chain and operations. We’re excited for Manna Pro to continue this positive trajectory as they enter a new phase with the exceptional team at Carlyle. ”

“We’re excited to partner again with John Howe and the talented Manna Pro management team, as we have known many of the key business leaders for more than six years,” said David Basto, a Carlyle Managing Director. “Our prior partnership with Manna Pro was a great success, and the business’ momentum has only continued. Strong recent organic growth and the relative fragmentation in the categories in which the Company plays give us a high degree of confidence in the opportunities ahead for Manna Pro.”

“Strong execution and enduring category tailwinds are driving exceptional growth for Manna Pro, and we believe there is meaningful runway for continued expansion, both domestically and internationally,” said Jay Sammons, Carlyle’s Head of Global Consumer, Media & Retail. “With multiple avenues for future value creation, including growing the core business and increasing the scale of acquisitions, we look forward to supporting the Company’s growth plans with our differentiated global capabilities and resources.”

“We are pleased to be working again with the team at Carlyle as we build on the substantial growth we’ve experienced in partnership with MSCP,” said John Howe, CEO, Manna Pro. “Our business has evolved significantly over the past three years with the expansion of our high quality product offering, increased investment in brand building, improved operations, and intense focus on growth and sustainability. With increasing demand for products that help pet parents care for and nurture their pets, we appreciate MSCP’s support in achieving our leadership position and look forward to working with Carlyle again as we continue our mission.”

The investment in Manna Pro is a continuation of Carlyle’s long-term global commitment to Consumer, Media & Retail, in which it has invested more than $21.5 billion of equity since inception. Equity capital for the investment will come from Carlyle Partners VII, an $18.5 billion fund that makes majority and strategic minority investments primarily in the U.S. in targeted industries, including Consumer, Media & Retail.

Debevoise & Plimpton LLP acted as legal advisor to MSCP. Kirkland & Ellis acted as legal advisor to The Carlyle Group and William Blair & Company acted as financial advisor to Manna Pro, with co-advisory support from Lincoln International.

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 $230 billion of assets under management as of September 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

About Morgan Stanley Capital Partners
Morgan Stanley Capital Partners, the middle-market focused private equity business of Morgan Stanley Investment Management, has invested capital in a broad spectrum of industries for over two decades. Morgan Stanley Capital Partners focuses on privately negotiated equity and equity-related investments in North America and seeks to create value in portfolio companies primarily through operational improvement. For further information about Morgan Stanley Capital Partners, please visit to  www.morganstanley.com/im/capitalpartners.

Media
Morgan Stanley Media Relations
Lauren Bellmare
212.761.5303
Lauren.bellmare@morganstanley.com

The Carlyle Group Media Relations
Brittany Berliner
212.813.4839
brittany.berliner@carlyle.com

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Eurazeu sells its entire stake in FARFETCH

Eurazeo

Paris, 3 November 2020

Eurazeo today announced the completion of the sale in the market in recent days of all its shares in Farfetch, a Eurazeo Growth portfolio company.

This disposal resulted in net proceeds of €90.4 million, corresponding to a multiple of 4.1x cash-on-cash and an IRR of around 38%. It is the second portfolio exit for Eurazeo Growth, after PeopleDoc in 2018.

Eurazeo had been a shareholder in Farfetch, an online marketplace connecting fashion and luxury goods brands as well as multi-brand boutiques with customers in 190 countries, since May 2016. Over this period, the Group accompanied the company’s growth, particularly by helping it develop its business among luxury goods brands and expand its geographic footprint in China and other countries.
Yann du Rusquec, Partner at Eurazeo Growth, said:

Eurazeo Growth is especially proud to have supported Farfetch in its development strategy since 2016. We wish José Neves and his teams every success with their future growth plans.

About Eurazeo
• Eurazeo is a leading global investment company, with a diversified portfolio of €18.5 billion in assets under management, including nearly €12.9 billion from third parties, invested in over 430 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 nearly 300 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, São Paulo, Seoul, Shanghai, London, Luxembourg, Frankfurt, Berlin and Madrid.
• Eurazeo is listed on Euronext Paris.
• ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA

EURAZEO CONTACTS

PRESS CONTACT

PIERRE BERNARDIN
HEAD OF INVESTOR RELATIONS
Email: pbernardin@eurazeo.com
Tel: +33 (0)1 44 15 16 76

VIRGINIE CHRISTNACHT
HEAD OF COMMUNICATIONS
Email: vchristnacht@eurazeo.com
Tel: +33 (0)1 44 15 76 44

MAITLAND/amo
DAVID STURKEN
Email: dsturken@maitland.co.uk
Tel: +44 (0) 7990 595 913

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TorQuest Partners and Caisse de dépôt et placement du Québec Announce Investment in Barrette Outdoor Living

Cdpq

Private Equity, Québec Québec, Ontario and Middleburg Heights, Ohio,
share

 
TorQuest Partners (“TorQuest”) and Caisse de dépôt et placement du Québec (“CDPQ”) today announced a majority investment in Barrette Outdoor Living Inc. (“BOL” or the “Company”), North America’s leading manufacturer of wood-alternative fence and railing products. TorQuest and CDPQ are partnering in this transaction with BOL’s owner, Les Entreprises Barrette Ltée, who will retain a significant minority interest in the Company, and BOL’s management team, led by CEO Jean desAutels. Terms of the transaction were not disclosed.

BOL manufactures and sells vinyl, aluminum and steel fence and railing; composite decking; and other outdoor products sold through specialty retailers, home centers and lumberyards. The Company’s scale, vertically-integrated operations, and broad portfolio of fence, railing and decking systems have driven a consistent history of distribution channel penetration and market share gains in its core outdoor living repair and remodeling market. BOL has also grown through acquisitions, which have expanded the Company’s geographic reach and built its product portfolio into the most comprehensive in the industry.

Jonathan Fraser, Partner at TorQuest, said: “This investment continues our well-established strategy of building relationships with successful Canadian entrepreneurs to support ownership transitions. BOL has experienced exceptional growth over the past decade due to its unparalleled operational capabilities and its industry-leading customer service levels. We believe the business is well-positioned to capitalize on the attractive industry dynamics in the North American outdoor living sector and we look forward to partnering with the BOL team to drive the business through its next phase of growth.”

This is the tenth Fund IV platform investment for TorQuest, which recently closed its fifth fund, TorQuest Partners Fund V, with $1.375 billion of committed capital.

Kim Thomassin, CDPQ’s Executive Vice-President and Head of Investments in Québec and Stewardship Investing, added: ” With this transaction, CDPQ is delighted to support Les Entreprises Barrette, a successful Québec company, with its evolution and development plan. Thanks to its ambitious growth strategy and numerous transformative acquisitions, BOL is now a North American leader in a fast-growing industry. CDPQ’s investment and support will help accelerate the company’s expansion in the coming years, securing its position as a leader.”

CEO Jean desAutels, said, “I am extremely proud of the accomplishments of the BOL team and believe it is the right time, and TorQuest and CDPQ are the right partners, to help build the business from here. BOL has a great foundation and is ready for its next stage of growth.”

Moelis & Company LLC and PricewaterhouseCoopers Corporate Finance Inc. served as financial advisors to BOL on the transaction.

About Barrette Outdoor Living Inc.

Barrette Outdoor Living is the leading North American supplier of exterior home products to the residential market. Barrette Outdoor Living produces vinyl, aluminum and steel fence and railing; composite decking; and other outdoor products sold through specialty retailers, home centers and lumberyards. Barrette Outdoor Living employs more than 2,000 people at 10 locations throughout the United States. For more information, visit www.barretteoutdoorliving.com.

About TorQuest Partners

Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than CA$3 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund IV, a CA$925 million fund that closed in June 2016.  In March 2020, TorQuest announced the closing of TorQuest Partners Fund V at CA$1.375 billion. TorQuest invests in middle market companies, and works in close partnership with management to build value. To learn more about TorQuest Partners, please visit www.torquest.com.

About Caisse de dépôt et placement du Québec

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and para-public pension and insurance plans. As at June 30, 2020, it held CA$333.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit www.cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

For more information

  • Sandy Blackwood
    Longview Communications Inc.
    416 649-8005

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