Gilde sells Hofmann to Partners Group

Kim Richters
12 December 2013

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Gilde Buy Out Partners has sold German catering company Hofmann Menü Manufaktur to Partners Group alongside Hofmann's management.

Hofmann's buyout is the second private equity deal for Partners Group this month so far, following the acquisition of VAT Holding alongside Capvis earlier in December.

Hofmann Menü Manufaktur group has an extensive history of private equity ownership, starting when Permira acquired the company for €68m in 1996. The transaction at the time consisted of €13m in equity, €43m in debt and a €11m mezzanine package, according to unquote" data.

Three years later, Permira divested the firm to Pricoa Capital for €79m in a secondary buyout. Pricoa committed €13m in equity and €13m in mezzanine via Pricoa Private Capital Partners I. A €53m senior debt package was provided by Bayerische Hypo- und Vereinsbank.

In 2005, Hofmann was put up for sale, with HgCapital eventually winning the auction. The transaction was valued at €100-250m, with UniCredit's German unit HypoVereinsbank providing a financing package comprising senior and mezzanine debt.

HgCapital sought to realise its interest in the company two years later, considering a recapitalisation and undertaking financial due diligence for potential interested parties to take over the firm. The GP then sold Hofmann to private equity house Gilde and European Capital, which provided mezzanine funding. Gilde had already bid for the firm in the 2005 auction.

Company
Hofmann Menü Manufaktur group produces bespoke and frozen food, catering for small business canteens and social organisations such as retirement homes, hospitals or schools.

The firm operates three production plants and six distribution centres across Germany and Austria. Founded in 1960, Hofmann is headquartered in Boxberg-Schweigern and employs around 1,000 people. In 2011, the company reported revenues of €120m.

People
Johannes Ulrich is CEO of Hofmann Menü. Ralph Wyss is chairman and partner at Gilde.

Advisers
Vendor – Kirkland & Ellis (LegaI); N+1 (Corporate finance).
Equity – Clifford Chance (Legal).