CVC to sell Continental Foods to trade

The sale would value Continental Foods at around €900m, according to a report in De Tij. The sale process saw Poland-based Maspex also bidding for the asset, the publication reported.

CVC had already tried to sell the business to Barcelona-based peer GBfoods in Q4 2017 for around €1bn, however the GP was unsuccessful, De Tij reported at the time. This was mostly due to the political uncertainty around Catalonia as well as divergent price expectations between the seller and the potential buyer, according to the Belgian publication. 

GBfoods is a food company with operations in around 50 countries in Europe, Africa and the Middle East. Gallina Blanca, Star, Grand'Italia, Jumbo and Gino are some of the brands managed by the group. The business is owned by the Catalan holding Agrolimen.

CVC was not available for comment at the time of publication.

Previous funding
Continental Foods was acquired by CVC in 2013 for €400m, via CVC Fund V, which closed on €10.75bn in 2008.

Leverage of 4.5x was calculated based on €55m EBITDA, according to Unquote sister publication Debtwire.

Company
Continental Foods, previously called Campbell Europe, was a division of Campbell Soup Company until it was acquired by CVC in 2013.

The business generates a turnover of €400m, and employs 1,000 people. Based in Puurs-Sint-Amands, it operates in Belgium, France, Germany, Sweden and Finland. Continental Foods owns a portfolio of local consumer brands including Liebig, Royco, D&L, Erasco and Blå Band.

People
GBfoods - Ignasi Ricou (CEO).
CVC Capital Partners - Steven Buyse (partner).

Advisers
Company - AZ Capital (M&A); PwC (financial due diligence); Clifford Chance (legal).
Equity – UBS (corporate finance); ING (corporate finance); Cleary Gottlieb Steen & Hamilton (legal).

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• Topics
• Exits
• Benelux
• Consumer
• Belgium
• CVC Capital Partners
• Trade sale