KKR takes stake in Permira's Telepizza following refinancing

The deal will see a group of investment funds take a 49% stake in the company.

Reuters cited a source close to KKR, stating the GP’s equity share in Telepizza will be 36%, with Permira retaining a 51% stake alongside existing backer Carbal.

As a result of the refinancing, Telepizza will reduce its debt from 7.3x EBITDA to 3.7x. Its senior debt will be reduced to €285m, with a revolving credit facility of €10m also included in the package.

The company will use the fresh funds for rebranding, the refurbishment of its stores and international expansion.

Previous funding
Permira acquired Telepizza for €850m in 2006, ending a five-month battle for the firm. The winning bid of 321 cents per share came from Foodco Pastries and Medimosal, companies jointly owned by Permira and investment vehicle Carbal, managed by the Ballve family. The buyers offered €120m more than rival bidder Zena, a CVC-backed Spanish restaurant operator.

ING and Royal Bank of Scotland Group led the lenders to provide a debt package of around €720m, with European Capital providing mezzanine funding.

In 2012, Permira led a €35m equity injection into the company as part of a larger refinancing operation.

Company
Founded in 1987 and headquartered in San Sebastian de los Reyes, near Madrid, Telepizza is a fast-food pizza chain with international operations. The company has a headcount of 24,000 with 15,800 based in Spain.

People
Carlos Mallo is a partner at Permira. Pablo Juantegui is CEO of Telepizza. Jamie Weinstein is co-head of special situations investing at KKR.

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• Topics
• Exits
• Consumer
• Southern Europe
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• Spain
• Permira
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