3i reaps €35m in Refresco Gerber IPO

Ellie Pullen and Greg Gille
27 March 2015

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Refresco Gerber, a Dutch bottling business backed by 3i, has raised €548m in its IPO on Euronext Amsterdam.

Refresco's decision to go public is the result of a process to reshuffle the company's capital structure, which was launched in Q3 last year. Both new and existing shares were offered as part of the listing.

The IPO was priced at €14.5 per share, giving Refresco Gerber a €1.2bn market cap and allowing it to raise €548m. As part of the listing 3i Group and its funds reduced their combined stake from 15.3% to 9.1%, with 3i Group reaping €35m. The offer price values 3i Group's remaining stake in the business at around €67m.

The flotation enabled 3i to generate a cash return of 0.7x – including the remaining stake at its current price, the return amounts to 2x.

JP Morgan and Credit Suisse acted as joint global coordinators and joint bookrunners in the IPO. ABN Amro and HSBC were joint bookrunners. Rabobank and Societe Generale were mandated as joint lead managers.

Previous funding
In 2010, 3i bought a 20% stake in Refresco for €84m. This marked 3i's first investment from its recently closed €1.2bn venture fund. Existing shareholders – an Icelandic consortium of investors led by Stodir, and the management of Refresco – retained their stakes in the business.

Refresco and Gerber Emig merged to become Refresco Gerber in 2013.

3i had already been a Refresco shareholder, backing a 2003 management buyout from a syndicate of private equity investors comprising Hay Hill Capital, NeSBIC, Isis Equity Partners, CBG Commerzbank and Capiton. The deal was valued at €310m and included a €128m debt package. In April 2006, 3i sold its stake in Refresco to FL Group, Vifilfell hf and Kaupthing in a deal valued at €535m.

Company
Founded in 1999, Refresco Gerber bottles soft drinks and fruit juices for retailers and brand-owners. The company experienced strong growth last year, with revenues rising by 28% to €2bn and EBITDA increasing by 49% to €208m.

People
Pieter de Jong worked on the deal for 3i.