Odin sells SFK Food to Solina

Odin managing partner Jacob Bergenholtz told unquote" the sale had generated a 35% IRR for the GP, just two years after its initial purchase, adding that his firm was very satisfied with the deal.

Odin fully exited its 85% stake, which was diluted slightly due to warrants held by management as part of the original deal being excercised. The warrants allowed existing management to increase its stake in the company in the event of a sale.

SFK CEO Kjeld Kronborg Danielsen will remain a minority shareholder following the deal, as will Casper Juul Sørensen, both of whom owned the company before the 2012 buyout supported by Odin.

The exit comes two years after the Danish GP bought the company as part of a buy-and-build strategy, which saw SFK acquire Norwegian India-Nor.

Bergenholtz said the GP had had a longer investment horizon planned for the company, through a buy-and-build strategy.

SFK had been looking for companies to bolt on, but other industry players were more keen on buying than selling, causing Odin to consider selling its asset to be part of a wider trend of consolidation in the food industry.

The GP had hired Stamford Partners to facilitate a sale and had received an offer during intial talks with tier 1 buyers. Solina then made their preemptive offer before the official prospectus was published.

Previous funding
Odin acquired a majority stake in SFK from the management team, Kjeld Kronborg Danielsen and Casper Juul Sørensen, which retained a minority stake. Minority shareholders Danish Crown, a meat products producer, and Sparekassen Kronjylland, a local bank, also exited the business.

The acquisition was negotiated in 2011, before closing in early 2012.

The deal saw the GP buy both SFK and W Oschätzen Århus, which had been operating as a single company since 2006, but were brought under the same name following Odin's acquisition.

Danielsen and Sørensen remained in their management positions and retained a minority stake in the company, which they continue to hold.

Company
SFK was founded in Viborg in 1931 and was merged with 1919-founded W Oschätzen Århus following Odin's acquisition of both in 2012.

The company manufactures spice mixes, spices, herbs, marinades and ingredients for meat, fish and poultry producers, and markets to both retail and industrial clients.

Headquartered in Århus, SFK employs 120 staff and had revenues of DKK 339m in 2012/13.

People
Jacob Bergenholtz is a managing partner at Odin, while Eric Terré is the CEO of Solina. Kjeld Kronborg Danielsen is the managing director and minority shareholder of SFK, alongside director Casper Juul Sørensen.

Advisers
Equity – Mazars (Financial due diligence); Plesner (Legal); Lund Elmer Sandager (Legal); AccuraTax (Tax).
Vendor – Stamford Partners (M&A); Accura (Legal); Deloitte (Tax); AT Kearney (Commercial due diligence).

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