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Unquote
  • Exits

EMZ exits Ankerkraut to Nestlé for 2x money

  • Wahida Ahmed
  • 14 April 2022
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France-headquartered EMZ Partners has sold its stake in Germany-based spice company Ankerkraut to Nestlé, generating a 2x money multiple after a 20-month holding period.

The sale of Ankerkraut marks the first exit of an investment conducted by EMZ’s Munich office, which opened in 2020, and the first full exit for EMZ 9. The fund held a final close on EUR 1bn in July 2020, according to Unquote Data. The fund is sector agnostic and deploys equity cheques in the range of EUR 30m-EUR 150m. The vehicle is currently 80% deployed, according to Unquote Data.

Fellow Ankerkraut investors including Freigeist Capital and Knälmann Ventures have also fully exited the business. The management team and founders of the business will remain significant minority shareholders under Nestlé’s ownership, according to a press release.

Ankerkraut

  • DEAL:

    Trade sale

  • LOCATION:

    Hamburg

  • SECTOR:

    Specialty retailers

  • FOUNDED:

    2013

  • TURNOVER:

    EUR 50m (2021)

  • EBITDA:

    EUR 12m (2021)

  • STAFF:

    250

  • VENDOR:

    EMZ Partners, Freigeist Capital, Knälmann Ventures

  • RETURNS:

    2x money

Mergermarket reported in January 2022 that Ankerkraut was exploring a sale with Houlihan Lokey.

According to German press reports, the business is targeting a turnover of EUR 100m in five years’ time. A source close to the company told Unquote that the business had a turnover of around EUR 50m in 2021 and EBITDA of EUR 12m.

EMZ invested in Ankerkraut in September 2020, acquiring a minority stake via EMZ 9. At the time of the deal, the Lemcke family retained a 51% stake in the business, while the company's pre-existing minority shareholders Frank Thelen and Matthias Knalmann reinvested and remained on the board via their respective investment firms Freigeist Capital and Knalmann Ventures, according to Unquote Data.

Under Nestlé's ownership, Ankerkraut intends to harness Nestlé’s resources and international distribution channels, while continuing to use its direct-to-consumer and omni-channel platforms, according to a press release.

EMZ declined to comment. Nestlé and Ankerkraut had not responded to a request for comments at the time of publication.

Company

Ankerkraut was founded in 2013 and is based in Hamburg. It is a producer of spices with a focus on sustainability. The company provides its spices in glass bottles with caps made from cork and its packaging is fully recyclable. The spices it produces contain no artificial additives and it will soon have an organic spice range, according to a press release. It was originally a digital-first company but has since expanded into an omni-channel platform with almost half its revenues generated online and the rest through physical stores, according to the press release. The company employs 250 staff.

People
EMZ Partners – Klaus Maurer (partner).
Ankerkraut – Stefan Lemcke (founder).
Nestlé - Marc Boersch (CEO, Germany).

Advisers
Vendor – Houlihan Lokey (corporate finance); Latham & Watkins (legal); Deloitte (financial due diligence); Munich Strategy Group (strategy due diligence).

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