Borromin's ProFagus completes refinancing

The refinancing will replace the company's existing capital structure and enable repayments of vendor and shareholder loans. The package also provides the company with an additional capex facility and supports its working capital requirements.

The process saw interest from banks and private debt funds, according to a source close to the situation.

In 2010, Steadfast backed ProFagus' MBO, with debt provided by DZ Bank, NIBC Bank and Commerzbank Group with a debt to equity ratio of 50:50.

During the investment period, Borromin has focused on the development of the company's natural additives division, as well as the expansion of the company's market presence in premium charcoal.

Unquote sister publication Mergermarket reported in February 2020 that DC Advisory had been mandated to run the sale process for ProFagus, with the aim of launching a sale process in Q2 or Q3 2020.

The sale process has been paused, Unquote understands, although not aborted.

Borromin could not be reached for comment.

Previous funding
In September 2016, Kartesia provided senior secured debt to ProFagus as the business required additional capital to finance a capacity expansion of its natural additives business. This also allowed part of the existing debt to be refinanced and one of the initial lenders to exit. Kartesia planned to be a medium-term partner for the business.

Company
ProFagus produces beech-based charcoal for barbecues, as well as natural additives used in sectors including pharmaceutical development. The company generates €7-8m in EBITDA with 2018 revenues of €41.5m. It is based in Bodenfelde.

People
ProFagus – Uwe Belz (CEO).
Borromin Capital Management – Clemens Busch (partner).

Advisers
Company – DC Advisory (debt).
Debt – Ashurst (legal).

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• Refinancing
• DACH
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