Black Toro provides €40m debt and equity mix for Farga Group

The deal saw the GP inject a €40m ticket into the business via its Black Toro Capital II (BTC II) fund, comprising €10m of equity and a €30m unitranche, which included a senior debt structure, liquidation preference and convertibility at BTC's option, according to a source familiar with the situation.

The company aims to use the funding to support the acquisition of La Menorquina, the Iberian branch of Canary Islands-based ice-cream manufacturer Grupo Kalise Menorquina and merge it with its subsidiary Farggi.

According to a statement, the business plan includes selling Farggi's existing plant and transfer all production to Menorquina’s facility in order to optimise utilisation. Following the deal, the merged group expects to double Farggi's capacity and post a turnover of €145m and a combined proforma EBITDA of €10m in 2017, according to the same source.

With this investment, BTC II has now deployed 78% of its commitments, according to a statement. The GP held a final close for its second fund on €235m in February 2017.

Company
Founded in 1957 and headquartered in Barcelona, Farga Group manages five restaurants and produces ice-cream via its subsidiary Farggi, which also manages 55 proprietary cafés. Currently, the group employs 1,100 people.

People
Black Toro Capital – Ramon Betolaza (managing partner).

Advisers
Equity – Cuatrecasas (legal).
Company – RSD Rousaud Costas Duran (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Expansion
• Consumer
• Southern Europe
• Spain