Down 2 Earth picks up Gudrun

José Rojo
04 January 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

Antwerp-headquartered SME investor Down 2 Earth Capital (D2E) has acquired an 80% stake in Belgian chocolate maker Gudrun.

A source close to the situation told unquote" that the remaining stake will be held by Gudrun's management team, led by CEO Eddy Walraevens.

Gudrun's enterprise value remains confidential but the same source confirmed it fell within the €20-30m bracket.

The MBO is the eighth deal to be inked by D2E since the firm was set up by former Gimv executives Alain Keppens, Peter Kloeck and Wouter Verlinden in 2013. In May that year, the SME investor announced a €50-60m target for its maiden vehicle; fundraising continued with a €32m first close over the summer and a €66.25m final close in April 2014.

Having backed resource management specialist Contraload, among others, the vehicle has deployed around 60% of its capital to date, unquote" understands. Work is currently underway to add two more deals in H1 2016 and a further three or four before the vehicle wraps up its investment phase.

The MBO takes place more than one year after Gudrun was put up for auction. Having kicked off in 2014, the process dragged into mid-2015, when D2E was approached by the chocolatier's CEO Eddy Walraevens. The executive was a familiar name for the GP's investment team, having been a former external director of Gimv portfolio companies such as food producer Sfinc.

Debt
The MBO was supported with a senior package from KBC, representing around 50% of the deal value.

Company
Founded in 1942, Gudrun produces and sells Belgian chocolate and truffles. With headquarters located near its central production site in Lier, the company employs 150 staff worldwide and distributes its products via retailers in the US and the UK, among others.

The chocolate maker most recently posted €30m in turnover. According to its estimates, the figure represents 10% year-on-year growth since 2012, when sales of €23m were recorded. The company's EBITDA remains confidential, but D2E typically seeks assets in the €1-10m EBITDA region.

People
D2E's work on the deal was coordinated by founding partner Wouter Verlinden. Eddy Walraevens is Gudrun's current CEO.