Tag Archives: Consumer brands

Unilever to sell its Tea business, ekaterra, to CVC Capital Partners Fund VIII for €4.5bn

CVC Capital Partners

Unilever today announced that it has entered into an agreement to sell its global Tea business, ekaterra, to CVC Capital Partners Fund VIII for €4.5 billion on a cash-free, debt-free basis.

ekaterra is the world’s leading Tea business, with a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO®. The business generated revenues of around €2 billion in 2020.

Alan Jope, CEO of Unilever said: “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell ekaterra demonstrates further progress in delivering against our plans.

“We are proud of the place that our Tea business has in our company’s history. We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC Fund VIII’s ownership.  I would like to thank our Tea colleagues around the world for their passion and commitment to our Tea business and wish them well for the future.”

Pev Hooper, a Managing Partner at CVC Capital Partners said: “ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities.  ekaterra is well positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development. We look forward to working with the team to realise ekaterra’s full potential.”

John Davison, CEO of ekaterra, said: “ekaterra is a strong business with positive momentum and has an exciting future ahead under the new ownership of CVC Fund VIII. We look forward to the next stage of our journey as the world’s leading Tea business.”

Completion of the transaction is subject to completion of works council consultation processes and the receipt of certain regulatory approvals. Completion is expected in the second half of 2022. The transaction perimeter excludes Unilever’s Tea business in India, Nepal and Indonesia as well as Unilever’s interests in the Pepsi Lipton ready-to-drink Tea joint ventures and associated distribution businesses.

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3i invests in Mepal to accelerate international growth and strengthen its online business

3I

3i Group plc (“3i”) announces that it has agreed to invest in Mepal, a leading Dutch lifestyle consumer brand that is known for its innovative, high-quality and sustainable products for storing and serving food and drink.

Headquartered in Lochem, the Netherlands, Mepal offers food storage boxes, tableware and on-the-go items (e.g. lunchboxes, bottles and flasks) for adults and children which are sold through mass and specialty retail channels, e-commerce partners and Mepal’s own online channels. 3i is investing to support further growth in Mepal’s existing core markets of the Netherlands, Belgium and Germany as well as develop new markets in Europe. In addition, 3i will support Mepal in growing its online business, further benefitting from increased e-commerce opportunities.

Mepal has a strong track record in both innovation and design and has won numerous leading design awards. The company’s products are renowned for their original and premium design, functionality, convenience, quality and sustainability, resulting in market-leading levels of customer satisfaction.

Mepal has a strong focus on ESG; the majority of its products are made using 100% recyclable materials and most of its products are proudly made in Holland. Customers can re-order parts to extend the lifecycle of their products and the products themselves help reduce food waste and the usage of single-use packaging, such as plastic bags and single use cups and bottles.

Pieter de Jong, co-Head Private Equity 3i, commented: “We are excited about partnering with Rutger de Korte and his team to continue Mepal’s success as a winning customer proposition. We see substantial international growth opportunity through leveraging the company’s existing online capabilities as well as continuing to build on its strong presence in retail channels in the Netherlands, Germany and Belgium. We look forward to working with the management team to achieve Mepal’s ambitions as a premium household brand.”

Rutger de Korte, CEO Mepal, said: “Mepal is a very strong brand with 70 years of heritage. I am confident that with 3i as our partner, we will be able to achieve our growth ambitions in the years to come. I am looking forward to teaming up with 3i and taking the next steps together to continue the successful growth strategy of Mepal, through delighting our customers with smart and innovative products that last a lifetime.”

The transaction is subject to customary antitrust approvals.

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SPANX, Inc. and Blackstone Close Majority Sale, Secure New Investors Including Oprah Winfrey, Reese Witherspoon and Whitney Wolfe Herd

ATLANTA & NEW YORK – November 18, 2021 – SPANX, Inc., the mission-driven womenswear brand founded by Sara Blakely in 2000, today announced that funds managed by Blackstone (“Blackstone”), a leading global investment firm, have completed their previously announced majority investment in the business at a valuation of $1.2 billion. Additional new investors in SPANX participating in the closing include iconic female entrepreneurs Oprah Winfrey, Reese Witherspoon and Whitney Wolfe Herd, as well as female-founded investment funds G9 Ventures, founded by Amy Griffin, and Able Partners.

SPANX was founded by Blakely 21 years ago when she took $5,000 in savings and set out to take on the male-dominated shapewear and undergarment industry. Blakely, who had never taken a business class in her life and was selling fax machines door to door at the time, wrote her own patent and invented the first SPANX undergarment in her apartment. Without ever taking any outside investment, she went on to turn SPANX into a global powerhouse that has changed the lives of women all over the world. Blakely has been named one of TIME magazine’s 100 Most Influential People in the world and was featured on the cover of Forbes magazine as the youngest self-made female billionaire. Through her personal foundation, Blakely has given millions of dollars to help elevate other women and in 2013 she signed the Giving Pledge, promising to donate half her wealth to philanthropy.

“I’m thrilled to welcome Oprah Winfrey, Reese Witherspoon, Whitney Wolfe Herd, G9 Ventures and Able Partners as investors of SPANX! This is an incredible, ‘pinch-me!’ full-circle moment because both Oprah and Reese have been longtime supporters of SPANX, and Whitney has been a gamechanger for women in business. Oprah was a big reason for SPANX’s early success when she named it one of her iconic ‘Favorite Things’ in 2000,” said Blakely, who now serves as Executive Chairwoman of SPANX. “To have the support of these smart, thoughtful, world-class female-founders who have also disrupted their industries to elevate and support women means everything. As we like to say at SPANX, ‘we’ve got your butt covered!’ With these new partnerships, that promise is as true as ever. I can’t wait to see what’s in store for the brand — and most importantly — for our customers.”

Oprah Winfrey said: “When Sara first came on The Oprah Show to tell us about her idea for SPANX, I knew it was brilliant. We’d all been cutting off our panty hose for years! So from the moment I wore my first pair, they became a staple in my wardrobe. It’s remarkable the business that Sara and her team have created, with the comfort and support of all women at the heart of their creations, and I’m happy to be part of the evolution.”

Reese Witherspoon, Founder of Hello Sunshine, said: “As a self-made founder who has built an absolute powerhouse of a brand, Sara is an inspiration to female entrepreneurs everywhere. In addition to developing a remarkable product and business that literally supports women every day, Sara has become a role model for leveraging your success to elevate other women. I’m so proud of Sara and the entire SPANX team, and I cannot wait to see what the future has in store for this incredible company.”

Ann Chung, Global Head of Consumer for Blackstone Growth (BXG), said: “Since creating the shapewear category more than two decades ago, Sara has built the company into a leading apparel brand and online force – and they’re just getting started. We’re so excited to partner with their team and this iconic group of co-investors to further accelerate the business’ growth through new product innovation, geographic expansion and continued digital transformation.”

As previously announced, Blackstone and SPANX intend to create an all-female SPANX board of directors, and Blackstone’s investment team for the transaction was all women. Blakely will continue to maintain a significant equity stake. Blakely, along with SPANX’s existing senior management team, will also continue to oversee daily operations.

Blackstone’s investment in SPANX, made through its Blackstone Growth (BXG) and Tactical Opportunities businesses, is the most recent example of a number of innovative female-founded companies the firm is proud to back. This includes in just the last two years Bumble, the online dating app where women make the first move founded by Whitney Wolfe Herd; Hello Sunshine, the mission-driven media company that puts women at the center of every story it creates, founded by Reese Witherspoon; Hotwire Communications, a leading provider of cutting-edge fiber-based telecommunication services co-founded by its CEO Kristin Johnson; GeoComply, a global leader in geolocation compliance technology, co-founded by its Chairman Anna Sainsbury; and Medable, a leading cloud platform for patient-centered clinical research, co-founded by Dr. Michelle Longmire. This is in addition to female-led technology businesses in which Blackstone has invested such as Ancestry.com, Articulate and Ellucian.

SPANX was represented by Goldman & Sachs and Allen & Co. in the transaction, with legal representation from Cravath, Swaine and Moore. King & Spalding served as Blakely’s legal advisor. Blackstone’s financial advisor for the transaction was JPMorgan and legal advisor was Simpson Thacher & Bartlett LLP.

ABOUT SPANX, INC.

Founded by Sara Blakely in 2000, SPANX, Inc. is a dynamic women’s brand that has revolutionized an industry and changed the way women around the world get dressed. The mission of the brand is to make things better and more comfortable for women. Through tremendous consumer demand, the company has expanded into offering both innerwear solutions and figure-flattering outerwear, activewear and swimwear. SPANX is constantly identifying and solving problems from a women’s point of view. With smarter, more comfortable must-haves including leggings, denim, the Perfect Pants collection, activewear, intimates and innovative shapewear, SPANX elevates women through product and empowers them to look and feel their best. Further information is available at www.spanx.com. Follow SPANX on Facebook, Twitter and Instagram @SPANX.

ABOUT BLACKSTONE

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $731 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

MEDIA CONTACTS

SPANX:
Lauren Hauther
(470) 868-8492
LHauther@spanx.com

Blackstone:
Matt Anderson
(518) 248-7310
Matthew.anderson@blackstone.com

OR

Mariel Seidman-Gati
(917) 698-1674
Mariel.seidmangati@blackstone.com

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Ardian provides Berlin Brands Group with additional growth capital

Ardian

Berlin / Frankfurt am Main, September 1, 2021 – Ardian, a world leading private investment house, announces today that it is providing additional growth capital to Berlin Brands Group (“BBG”), a global e-commerce company based in Berlin, through its fifth generation of Expansion Funds. Over the course of the transaction, Ardian will once again become a minority shareholder in BBG and support the company during its next growth phase alongside majority shareholder and CEO Peter Chaljawski, as well as BBG’s new and second largest shareholder, Bain Capital.

Berlin Brands Group is a pioneer in direct-to-consumer (D2C) brand marketing. The multi-brand company sells a range of over 3,700 products under 34 own brands and via 100 online channels across 28 countries. The brands encompass the household appliances, consumer electronics, gardening and fitness equipment segments, including Klarstein (klarstein.de), auna (auna.de), blumfeldt (blumfeldt.de) and Capital Sports (capitalsports.de).

As a key part of its next growth phase, BBG launched a comprehensive M&A roll-up strategy in 2020 focusing on acquiring, integrating and scaling e-commerce brands across its platform. Ardian supported the group’s management in implementing this strategy and now plans to further contribute to establishing BBG as the leading global D2C consolidator.
Ardian was already invested in BBG via its third generation of Expansion Funds from July 2015 to September 2021.

“We have benefitted greatly from Ardian’s expertise as a reliable investment partner in recent years. We are therefore thrilled that Ardian will also accompany us during our next growth phase.” PETER CHALJAWSKI, Founder and CEO of BBG

“BBG continues to show significant growth potential and we fully support the company’s strategy, as well its excellent management team led by Peter Chaljawski. We look forward to continue our successful partnership.” MARC ABADIR, Managing Director in Ardian’s German Expansion Team

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$120bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world. Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 800 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of more than 1,200 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.

www.ardian.com

ABOUT BERLIN BRANDS GROUP

Berlin Brands Group (BBG) is a global e-commerce company and one of the pioneers in the direct-to-consumer business. The Berlin-based hidden champion currently sells over 3,700 every day and trendy products across 34 of its own e-commerce brands. The goal: to become one of the world’s leading
e-commerce companies with a ‘global house of digital brands’.

www.berlin-brands-group.com

Press contact

ARDIAN – CHARLES BARKER CORPORATE COMMUNICATIONS

Peter Steiner

ardian@charlesbarker.de Tel: +49 69 79409027

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21 Invest Italy signs a binding agreement to acquire Zanzar, a leading Italian group in insect screens

21 Invest Italy is pleased to announce that it has entered into a binding agreement to acquire a majority stake in Zanzar, European leader in the development and production of insect screens based in the South of Italy.

Founded in 1985 by Angelo L’Angellotti, Zanzar was at first focused on the production of insect screens and then enlarged its product offer to other window accessories like shutters, blinds, awnings and pergolas thanks to recent acquisitions.

Zanzar is still managed by the founder and has experienced a strong growth over the years, reaching a total turnover of about €M 80, about 35% of which is generated on international markets with a total workforce of about 400 employees.

Across its 11 production sites, Zanzar has developed an extremely efficient operating model, that ensures customers can experience a high level of service and quality, with extremely fast delivery times. The continuous investments made over the years and still underway will provide the company with significant room to grow, both increasing penetration in already served markets and expanding its international footprint.

21 Invest will support the company’s development on an organic basis, including the integration of the companies acquired in the past years, as well as, through a build-up strategy, with a number of potential targets already identified in order to expand product range and market coverage.

The current management team will continue running the company, headed by the Chairman Angelo L’Angellotti. The project also envisages the managerialization of the company, through the involvement of professionals, either already with the company or to be recruited, with the ultimate aim of strengthening Zanzar’s organizational structure.

Alessandro Benetton, Founding Managing Partner of 21 Invest states: “We are delighted to support Zanzar in pursuing further development. Partnering with an entrepreneur and a company that over the years have shown enormous potential is at the basis of our investment strategy. I firmly believe that the synergy between Zanzar’s DNA and 21 Invest’s industrial approach will allow the group to further strengthen its leadership position in the sector, further accelerating the growth path developed over time.”

Angelo Angellotti, Chairman of Zanzar, affirms: “The partnership with 21 Invest is a milestone in a journey that began more than 35 years ago. With 21 Invest we will be stronger and ready to take on future growth opportunities in Italy and abroad, both organically and through add-on acquisitions.”

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Tech24 Acquires Commercial Kitchens

HCI Equity Partners

Tech24 Completes Sixth Add-on Acquisition

GREENVILLE, SC, November 8, 2021 — Tech24, backed by HCI Equity Partners, announced today it acquired Commercial Kitchens, Inc., based in Milford, Connecticut on November 3, 2021. Tech24 is a national provider of repair and maintenance services for food service and commercial HVAC equipment. Commercial Kitchens represents the sixth add-on acquisition in HCI’s consolidation strategy in the highly fragmented foodservice repair market.  Financial terms were not disclosed.

Commercial Kitchens is a founder-owned business, providing repair and preventative maintenance services for commercial grade kitchens to healthcare, education and other institutional customers, across Connecticut, New York and northern New Jersey. The Company has full-service contracts with most of its customers. Commercial Kitchens represents an attractive addition to the Tech24 platform by adding a complementary location in the Tri-state area which provides entry to the institutional foodservice end market.

“We are very pleased to add Commercial Kitchens to the Tech24 family,” said Dan Rodstrom, CEO of Tech24.  “We look forward to working closely with Rich Pinto and the team to offer their fixed cost service model across the entire, growing Tech24 platform. This approach has provided a valuable service model to institutional customers looking for budget certainty.”

Rich Pinto, CEO of Commercial Kitchens, stated, “Our success has been built on bonding with our customers by guaranteeing superior work and deep knowledge about food service technology. We are excited about this opportunity to join with and grow the unique Commercial Kitchens model under the Tech24 national umbrella. Our existing contract partners will continue to receive the same high level of service they have come to expect.”

Doug McCormick, HCI’s Managing Partner commented, “We are pleased with the pace of our acquisitions for the Tech24 platform and the increasing set of capabilities we can provide to our customers.  Commercial Kitchens has a strong history of successfully supporting its customers and provides a specialized expertise to the entire Tech24 organization.”

Quarles and Brady served as legal counsel to Tech24.

 

About Tech24

Tech24 provides installation, preventative maintenance and repair for foodservice facilities across the US. The Company specializes in cooking, refrigeration, beverage and specialty foodservice equipment, as well as performs HVAC, electrical and plumbing services. For more information, please visit www.mytech24.com.

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Ardian invests in Strategie Media Conseil to build on the leading luxury real estate classifieds platform in France

Ardian

02 NOVEMBER 2021 GROWTH FRANCE, NICE

Nice, November 2nd, 2021 – Ardian, a world leading private investment house, today announces the acquisition of a minority stake in Strategie Media Conseil, a leading French digital real estate classifieds platform offering luxury and high-quality properties via its two websites – Résidences Immobilier and Maisons & Appartements.

Founded in 1994 by Jean-Pierre Cohen and Eric Bernt, the Strategie Media Conseil (SMC) Group has become one of the leading digital real estate classifieds platforms in France, connecting homebuyers and tenants with around 2,000 real estate agencies. The company currently employs nearly 50 people.

Originally launched as a real estate media publisher operating in the French Riviera, the Group took the strategic decision to establish its digital presence via its two real estate classifieds platforms in order to adapt to the evolutions of its clients’ business and to market expectations. The Group has also expanded its geographical footprint across France in new strategic regions thanks to its sales force and its proprietary software tools.

Ardian Growth’s investment in the Group will enable SMC to build on its strong presence in the French market by expanding its offering and geographical reach, cementing its leading position in the luxury real estate and intermediate housing segments. To this end, the Group will be able to draw on Ardian Growth’s technological and industry expertise, global footprint and diverse network of entrepreneurs.

Jean-Pierre Cohen, Co-Founder at SMC, said: “To step up our growth and continue delivering fantastic customer experience to buyers, agents and sellers, we will, with the support of Ardian Growth’s team, invest in growing our team and developing our digital platform while expanding our high added-value service portfolio for real estate agents.”

“Our investment in Strategie Media Conseil is a perfect example of our approach of backing ambitious entrepreneurs with solid expertise who are looking to take their companies to the next level. The Group is a strongly performing digital real estate classifieds platform with a clear strategic focus and an impressive track record. We look forward to working closely together with Jean-Pierre and its team, to expand the platform and ensure that SMC’s exceptional offer is more widely available across France.” said Alexis Saada and Léa Chaplain for Ardian Growth.

More information on the websites:

WWW.MAISONSETAPPARTEMENTS.FR

WWW.RESIDENCES-IMMOBILIER.COM

 

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$114bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base.
Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 800 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of more than 1,200 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.

www.ardian.com

 

ABOUT STRATEGIE MEDIA CONSEIL

Founded in 1994, Strategie Media Conseil (SMC) develops two digital real estate classifieds platforms: Maisons & Appartements, a leader in high-quality housing and Résidences Immobilier, a leader in luxury real estate. Initially specializing in real estate media, the Group has established its digital presence becoming one of the leading digital real estate classifieds platforms in France. The Group retains its dual media offering with the monthly publication of its print magazines. With its 60,000 ads, Maisons & Appartements has expanded across the South of France, from Monaco through the Rhône-Alpes region to the Atlantic Coast. With around 20,000 luxury real estate ads covering Paris, the Atlantic Coast and the French Riviera and around 4,500 pages a year in its magazine version, Résidences Immobilier is one of France’s leaders in luxury real estate.

LIST OF PARTICIPANTS

  • STRATEGIE MEDIA CONSEIL

    • JEAN-PIERRE COHEN

  • STRATEGIE MEDIA CONSEIL ADVISORS:

    • M&A ADVISORS: EDMOND DE ROTHSCHILD (JULIEN BÉRAUD, GONZAGUE POURADIER-DUTEIL, AUDE-AMEL CHERAITIA)
    • LEGAL ADVISORS: HUBERT EVRARD (BOSIO-EVRARD & ASSOCIÉS)
    • FINANCIAL ADVISORS: ALVAREZ & MARSAL (JONATHAN GIBBONS, SAMIH HAJAR, SIMANE IDBALKASSM, MAXIME FRYDMAN)

  • ARDIAN

    • ALEXIS SAADA, LÉA CHAPLAIN

  • ARDIAN ADVISORS:

    • LEGAL ADVISORS: MCDERMOTT WILL & EMERY (DIANA HUND, FANNY RECH, MARIANNE ZWOBADA (CORPORATE); ANTOINE VERGNAT, CÔME DE SAINT VINCENT, MATTHIEU RANNOU (TAX); PIERRE-ARNOUX MAYOLY, SHIRIN DEYHIM, CLARISSE DE ROUX (FINANCING))
    • TAX, LEGAL AND EMPLOYMENT AUDIT: FIDAL (KATIA JARQUIN, LORRAINE RAIMBERT-NUSSE, MIKAËL MAHEUST)
    • FINANCIAL ADVISORS: EIGHT ADVISORY (CHRISTOPHE DELAS, FABIEN THIEBLEMONT, ARTHUR HUON)

  • FINANCING

    • LEAD BANK: SOCIÉTÉ GÉNÉRALE (GAËLLE COUDERT-MAJOULET)
    • PARTICIPANTS: BNP PARIBAS (AURÉLIE GIORDANO, BRUNO CHAUDAT, MATHIAS RONZEAUD), CAISSE RÉGIONALE DE CRÉDIT AGRICOLE MUTUEL PROVENCE CÔTE D’AZUR (CHRISTOPHE LEJEUNE, BENJAMIN BREBAN, STÉPHANIE TOURRET)
    • FINANCING ADVISORS: SIMMONS & SIMMONS (COLIN MILLAR)

PRESS CONTACTS

ARDIAN

HEADLAND

ardian@headlandconsultancy.com

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American Water Announces Agreement to Sell its Homeowner Services Group to Funds Advised by Apax Partners

  • American Water agrees to sell its Homeowner Services Group to funds advised by Apax Partners LLP (“Apax”) in a deal valued at $1.275 billion
  • At closing, American Water will receive $480 million in cash and a $720 million secured Seller’s Note bearing a 7% annual interest rate with a five-year term
  • Additional purchase price of $75 million if certain milestones are met
  • American Water also enters into revenue sharing agreement on revenue generated from on-bill billing arrangements with American Water customers
  • American Water’s core regulated business strengthened as cash proceeds from the transaction will be redeployed into the regulated water and wastewater businesses in near- and long-term
  • Proposed sale further narrows market-based business focus to regulated-like Military Services Group

 

American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today announced that it has agreed to sell its Homeowner Services Group to funds advised by Apax in a deal valued at approximately $1.275 billion.

Upon closing of the transaction, American Water will receive $480 million in cash and a $720 million secured Seller’s Note bearing a 7% annual interest rate with a five-year term. In addition, the transaction includes a delayed payment to American Water of $75 million if certain milestones are met by December 31, 2023. The structure of the transaction enables initial cash proceeds to be redeployed into the regulated water and wastewater business to fund near-term incremental capital investments, while interest on the Seller’s Note will provide a stream of earnings over the term of the note. Upon maturity, the proceeds from the repayment of the Seller’s Note are expected to be used to fund a continually growing capital investment in the regulated business.

“American Water has successfully grown our Homeowner Services Group over the last 20 years, creating great value.” said Walter Lynch, President and CEO of American Water. “This transaction allows us to capitalize on that value creation by utilizing the proceeds to invest in our regulated businesses. As we have continuously communicated, our strategy is to operate where we can best serve customers, drive efficiencies, invest in our systems and grow our regulated water and wastewater businesses,” added Lynch. “We look forward to outlining the transaction further, as we discuss our long-term financial plan at our next virtual investor day on November 3, 2021.”

Homeowner Services Group’s customer facing brands include American Water Resources and Pivotal Home Solutions, which provide various warranty protection programs and other home services to residential customers across the country.  This business currently has nearly 3 million customer contracts across 43 states and Washington, D.C.

“We believe Apax will take the growing Homeowner Services business into its next chapter and employees will transfer as part of the deal and have the opportunity to continue to add value to customers,” added Lynch.

Ashish Karandikar, Partner at Apax, said, “Having tracked the home warranty sector, we identified the Homeowner Services Group as a stand-out provider in the space. The Apax Funds have deep domain experience across the home services market and insurance and warranty product dynamics, with prior investments in Authority Brands, Assured Partners and Hub for example. We are excited to partner with the team at Homeowner Services Group as we look to build on the Homeowner Services Group’s success to date, leveraging the Apax Funds’ transformational approach, hands-on operational excellence, and deep digital expertise to support the company going forward.”

Nedu Ottih, Principal, Apax added: “The Homeowner Services Group team have built an impressive business in an important and growing sector, and we see a strong investment case for future growth. We look forward to working with the team, the company’s customers, and clients, leveraging the Apax Funds’ transformational approach, hands-on operational experience and deep digital expertise to support the company going forward.”

American Water will also enter into a revenue sharing agreement that provides for American Water to receive a percentage of revenue generated from previous on-bill billing arrangements with American Water customers. This agreement will also provide an ongoing income stream as Apax continues these relationships.

American Water anticipates closing the transaction in the fourth quarter of 2021, subject to the satisfaction or waiver of customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

American Water was exclusively advised by BofA Securities, Schulte Roth & Zabel LLP and Shearman & Sterling LLP. Apax was advised by Goldman Sachs, Harris Williams, PWC and Simpson Thacher & Bartlett LLP.

 

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to our business and the proposed transactions described in this press release, including, but not limited to, the ability to complete such transactions on a timely basis or at all; the ability to satisfy closing and other covenants and conditions related to such transactions, including the ability to obtain required regulatory approvals (including under the Hart-Scott-Rodino Act) and other consents and to provide all closing deliveries; the accounting, financial and other impacts of such transactions; and the ability to achieve the Company’s regulatory and other strategies, benefits, plans and goals related to such transactions, including with respect to the repayment of the Seller’s Note and the redeployment of the net proceeds from such transactions, and involve various risks and uncertainties. These statements are based on the current expectations of management of American Water. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, including without limitation with respect to (1) obtaining required approvals and consents required for the transactions, including expiration or termination of the applicable Hart-Scott-Rodino waiting period; (2) satisfying other conditions to the closing of the transactions; (3) the amount of proceeds to be received from the transactions due to, among other things, closing and post-closing adjustments to the purchase price and other withholdings as provided in the purchase agreement and the ability to receive any contingent consideration and payments under the Seller’s Note and the revenue share agreement; (4) the post-closing operating and financial results of the Homeowner Services Group business; (5) unexpected costs, liabilities or delays associated with the transactions; (6) regulatory, legislative, local or municipal actions affecting the Homeowner Services Group and the water and wastewater industries; and (7) other economic, business and other factors.

 

For further information regarding risks and uncertainties associated with American Water’s business, please refer to American Water’s annual, quarterly and periodic SEC filings, including American Water’s Current Report on Form 8-K filed with the SEC to report this transaction.  Forward-looking statements are not guarantees or assurances of future performance or results, and, except as may be required by applicable law, American Water does not undertake any duty to update any forward-looking statement. The foregoing factors should not be construed as exhaustive.

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Partners Group to acquire significant minority stake in leading independent Swiss watchmaker Breitling

CVC Capital Partners
  • Breitling draws on a unique industry heritage as the inventor of the modern wrist chronograph
  • Partners Group Co-Founder Alfred Gantner will join the Board of Breitling
  • Management, CVC, and Partners Group will jointly drive Breitling’s development into the leading neo-luxury watch brand

Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire a significant minority stake in leading Swiss watchmaker Breitling (or “the Company”), from CVC Capital Partners Fund VI and management.

Founded in 1884, Breitling is already one of the leading Swiss watchmakers, with a unique heritage in the industry as the inventor of the modern wrist chronograph and a particular positioning as a casual, inclusive, and sustainable luxury brand. Breitling has a diverse range of watch collections centered around air, land, and sea themes, and its unique modern-retro design style appeals to an increasingly broad consumer base globally. The Company benefits from attractive macro and sectoral transformative growth trends, especially in Asia, where rising disposable incomes amongst the middle classes are increasing demand for premium products, including watches. It is estimated that the luxury watch segment will grow at 6% CAGR between 2021 and 20241, with the majority of this growth coming from China.

Partners Group will partner with CVC Capital Partners and management to further accelerate Breitling’s growth, building on its successful track record in recent years. Key value creation initiatives include growing direct-to-consumer sales channels, expanding Breitling’s own retail network, particularly in Asia and the US, and continuing to improve operational efficiency. In line with Partners Group’s entrepreneurial governance approach, the firm’s Co-Founder Alfred Gantner will join the Board of Breitling.

Alfred Gantner, Co-Founder, and Executive Member of the Board of Directors, Partners Group, says: “Breitling is an iconic Swiss brand whose watches are instantly recognisable around the world for their quality and style. Under the leadership of Georges Kern, the Company has enjoyed significant growth in recent years, and we believe it has significant potential to capture a wider audience of consumers globally. We wholeheartedly look forward to working with Georges and the CVC team to realize this next stage of growth for Breitling.”

Georges Kern, Chief Executive Officer, Breitling, comments: “We are delighted to welcome Partners Group as an investor, and Alfred Gantner as a Board member. With CVC and Partners Group we have a strong alliance to accomplish our ambitious targets to realize our immense potential to become one of the undisputed leaders in the Swiss Watch Industry.”

Daniel Pindur, Partner, CVC Capital Partners, states: “We are proud of the fantastic progress Breitling has made since we invested in 2017. Working in close partnership with Georges and his team, we have been able to significantly accelerate Breitling’s growth, through a repositioned brand, a rejuvenated product offering and a continued digitization of the business. We are very pleased to be bringing Partners Group on board and look forward to working closely with them to continue to grow this iconic business further and ultimately target an IPO in a few years’ time.”

1Source: Boston Consulting Group 2021

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3i-backed GartenHaus continues its international growth with the acquisition of Outdoor Toys in the UK

3I

3i Group plc (“3i”) today announces that A-Z Gartenhaus GmbH (“GartenHaus”), a digital leader in garden homes, sheds, saunas and related products in North Europe, has acquired Outdoor Toys, a leading online D2C retailer of outdoor garden toys in the UK. As part of the transaction, 3i will invest c.€56m of additional capital.

Founded in 2006 by James Owen and based in Mid Wales, Outdoor Toys is among the largest outdoor garden toys specialists in the UK. The company offers over 1,000 products and specialises in Modular Toys, including swing sets, slides and climbing frames, as well as ride-on toys, trampolines, sandpits and accessories. The company operates a vertically integrated value chain with its own product design, UK manufacturing, customer service, dedicated logistics fleet and direct online sales to customers through its own website as well as online marketplaces.

Outdoor Toys is known for its comprehensive customer service and strong customer satisfaction, with a reputation for quality. The company has delivered sales growth of 70% per annum since 2019 and shipped over 1 million items in the last twelve months.

This acquisition expands GartenHaus’s product portfolio and geographic reach whilst also enabling Outdoor Toys to increase its international reach. The combined business will be able to cross sell its products to customers as well as benefit from online marketing, customer service and supply chain synergies. The acquisition also supports GartenHaus’s ambition of building the leading European platform for home and garden projects.

Today’s acquisition is the second for GartenHaus since 3i’s investment in September 2020 and follows the addition of Polhus, a leading online retailer of garden houses and related products based in Scandinavia, in late 2020. Based on the strong organic performance of GartenHaus as well as the two strategic acquisitions, total EBITDA of the group has tripled since 3i´s original investment.

James Owen, founder and CEO of Outdoor Toys said: “We are delighted to be joining forces with GartenHaus to bring our award winning products to even more customers across Europe. We are excited for the future and look forward to continuing to grow Outdoor Toys whilst benefitting from the know-how of GartenHaus and its strong platform.”

Sebastian Arendt, CEO of GartenHaus commented: “I would like to welcome James and the Outdoor Toys team to GartenHaus. There is a strong fit between our businesses and we look forward to working together as we continue our growth. 3i’s backing and international network have been instrumental in our achievements to date and we are excited to look ahead at further international expansion.”

Peter Wirtz, Partner 3i added: “GartenHaus and Outdoor Toys are a great combination and we are very happy to sign our second acquisition only a year after investing in GartenHaus. This transaction fits with our strategy of building GartenHaus into the leading European platform for home and garden projects.”

 

-Ends-

 

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For further information, contact:

 

3i Group plc

Kathryn van der Kroft

Media enquiries

 

 

Silvia Santoro

Shareholder enquiries

  

Tel: +44 20 7975 3021

Email: kathryn.vanderkroft@3i.com

 

 

Tel: +44 20 7975 3258

Email: silvia.santoro@3i.com

 

 

 

Notes to editors:

 

About 3i Group

3i is a leading international investment manager focused on mid-market Private Equity and Infrastructure. Its core investment markets are northern Europe and North America. For further information, please visit: www.3i.com

 

About GartenHaus

Hamburg-based A-Z GartenHaus GmbH was founded in 2002 and employs over 100 people. With over 1 million monthly users, it is the digital market leader for home and garden projects in Germany, Austria, Switzerland, Benelux and Denmark. Since 2020 the digital leader for garden houses in Scandinavia, Polhus, is part of the GartenHaus group with webshops in Sweden, Norway, Finland, France and DACH.

As a digital specialist, GartenHaus GmbH has developed an innovative online shop including price comparison and unique and rich media content for a product range of 30,000 items and services. Consequently, GartenHaus GmbH offers the largest product assortment in Europe from 100 third party and 7 private label brands, such as Alpholz, FinnTherm, Terrando, Kibungi and POOLCREW. The product range includes garden sheds, saunas, patios, carports, garages, children’s playhouses, pools, green houses and much more. On request, GartenHaus GmbH handles the entire garden and home project, from A to Z: assembly, consultation, planning permission, foundations, maintenance and accessories. The extensive range of services includes products made to measure and configurators allowing customers to design products individually.

For further information, please visit: www.gartenhaus-gmbh.de, www.polhus.se

 

About Outdoor Toys

OutdoorToys was founded by CEO James Owen in 2006 and developed into one of the UK’s digital leaders for children’s toys and play equipment. With its modular design philosophy, its eCommerce platform and an agile manufacturing process it has disrupted the market. From humble beginnings the company quickly established itself in the market with its 100% D2C model built on a leading technology platform that enables the customer’s experience to be tailored to their unique requirements.

For further information, please visit: www.outdoortoys.co.uk

 

Regulatory information

This transaction involved a recommendation of 3i Investments plc, advised by 3i Germany.

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