Equistone's Group of Butchers sold to Parcom

Harriet Matthews
23 October 2020

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Equistone portfolio company Group of Butchers is to be acquired by Parcom in a secondary buyout.

The deal values Group of Butchers at almost €300m, according to a source close to the situation. The company was valued at around €100m at the time of Equistone's original investment.

Equistone initiated the sale process for Group of Butchers in 2019, with the business set to come to market in October that year, Mergermarket reported. Final-round bidders in December 2019 included Capvest, TowerBrook, Telemos Capital and Lindsay Goldberg. The process was marketed based on EBITDA of €25m.

However, the original process stalled due to the coronavirus pandemic, although the business performed strongly during this period. Unquote sister publication Mergermarket subsequently reported in September 2020 that Parcom was in exclusive negotiations to acquire the asset.

Parcom is currently deploying equity via Parcom Fund VI, which held a final close in April 2020 on its hard-cap of €775m. The fund deploys equity tickets of €30-70m, targeting mid-market companies in the Netherlands. Group of Butchers will be Parcom's first investment from the fund, according to Unquote Data.

Parcom said in a statement that it plans to support Group of Butchers' organic growth and the integration of its previous add-on acquisitions. The GP is also seeking buy-and-build opportunities for the company with the aim of adding new customers and product categories.

Pemberton provided acquisition financing to back the deal. Unquote sister publication Mergermarket reported that leverage offers were pitched at 4-5x.

Previous funding
Equistone acquired Group of Butchers in an SBO from Nordian Capital in December 2016. Nordian had owned the business since 2012.

Equistone invested via Equistone Partners Europe Fund V, which held a final close in 2015 on €2bn and invested in businesses with enterprise values of €50-300m. NIBC Bank provided debt to back the buyout.

During the investment period, Equistone supported a number of bolt-ons for the company, including Germany-based meat producer Gmyrek in 2018. The company made seven add-ons in total in the Benelux and DACH regions, with the aim of expanding its product offering and geographical presence.

Company
Founded in 1997 and based in Tilburg, Group of Butchers produces and distributes meat products in the European market. The company was originally known as Dutch Grill Specialists. Its clients include Netherlands-based supermarkets.

The company employs 900 people at 12 production sites and two distribution facilities. It is expected to generate revenues of €280m in 2020. Group of Butchers generated revenues of €128m and employed 350 people at the time of the Equistone's initial investment in 2016.

People
Equistone – Marc Arens (partner); Maximilian Göppert (investment director).
Parcom – Maurits Werkhoven (partner).
Group of Butchers – Remko Rosman (CEO).

Advisers
Equity – Rabobank (corporate finance); Squarefield (financial due diligence).
Vendor – Rothschild (M&A); EY (commercial & financial due diligence, tax); Allen & Overy (legal).