Towerbrook buys Ad Van Geloven in SBO

José Rojo
24 March 2015

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Towerbrook Capital Partners has acquired Dutch frozen snacks company Ad Van Geloven alongside management from owners Lion Capital, Avedon Capital and other minority shareholders.

Intermediated by DC Advisory, the deal was sealed on 23 March after eight weeks of negotiations.

TowerBrook's investment will be drawn from its LP IV fund. Launched in October 2012, the buyout vehicle reached its $3.5bn target in February 2013. It focuses on acquiring controlling stakes in mid-sized to large companies in sectors such as chemicals, financial services and healthcare.

Lion Capital had purchased the business from another private equity firm, Egeria, in a €290m deal in August 2008 that included €190m of debt provided by Barclays, Bank of Ireland and ING.

In June 2013, Lion sold a significant minority stake to Avedon Capital Partners.

According to the company's management, Ad Van Geloven will now look to expand outside the Netherlands by developing new product lines and attempting to consolidate within the European market.

In that regard, TowerBrook's plans involve further capital deployments into Ad Van Geloven as the company attempts to strengthen it position by acquiring other businesses.

Debt
A unitranche debt package was arranged by Intermediate Capital Group (ICG), Investec and KKR - it is understood that ICG provided 80% of the package. Rabobank also supplied a super-senior revolving credit facility.

Company
Ad van Geloven was founded in Tilburg, the Netherlands, in 1960 and employs approximately 900 staff. The company owns five factories across the Netherlands and Belgium and reportedly saw turnover of €195.4m in 2014.

The firm produces branded frozen snacks under a range of subsidiaries, including Mora, Welton Snacks and Hebro.

People
TowerBrook Capital Partners was represented by principal Jose Arellano. Peter Doodeman is the CEO of Van Geloven.

Advisers
Equity – DC Advisory (Financial due diligence, debt advisory); Kirkland & Ellis (Legal); Kurt Salmon (Commercial due diligence); Ernst & Young (Financial due diligence).
Vendors – Stamford Partners (Corporate finance); Atlas Advisors (Financial due diligence); PwC (Financial due diligence, commercial due diligence).
Company – Houthoff Buruma (Legal).
Management – Jamieson Corporate Finance (Corporate finance); Simmons & Simmons (Legal).