BWK exits Sunval in trade sale

The GP reaped a 7x money multiple in the deal. DMK initiated the deal by approaching BWK, following their collaboration on the baby food market abroad.

DMK will add the company to its baby food business which includes well-known brand Humana. It plans to run Sunval with its original staff, keeping both products and customers in place.

Previous funding
BWK acquired a 40% stake in Sunval in a management buy-in succession solution in 2008, in which it brought in new managing director Ralf Jungfermann. Jungfermann acquired 20% of the business in the transaction, which was supported by a small amount of debt from BW Bank. The original owner exited the company the following year, raising BWK's stake to 73%.

In 2009, Sunval acquired the baby food product lines of De-Vau-Ge Gesundkostwerk and Hochdorf Nutrifood with support from BWK. The move doubled Sunval's turnover. The acquisition was financed with one-third equity and two-thirds debt provided by BW-Bank and KfW.

During the holding period, Sunval's turnover grew by an average of 36% year-on-year, reaching €37m in the 2012 financial year – up from €16m in 2008. Its EBITDA grew from €1.5m to €5m in the same period.

Company
Sunval was founded in 1979 and is based in Waghäusel. The company produces organic own-brand and private-label baby food that is distributed in specialist shops and drug stores. It employs 140 people.

People
Matthias Heining led the deal for BWK.

Advisers
Vendor – Menold Bezler (Legal); Ebner Stolz Mönning Bachem (Financial due diligence).

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• Topics
• DACH
• Consumer
• Exits
• Germany
• BWK GmbH
• Trade sale