Ergon Capital Partners acquires Sausalitos from EQT

To finance the transaction, Belgium-based Ergon Capital Partners will use its third fund, a €775m vehicle that closed on its target in March 2010.

Sausalitos states it plans to grow the number of its stores in Germany and to expand internationally with Ergon's backing.

EQT will also be repaid the outstanding expansion capital facility as part of the transaction, which is expected to complete in July 2014.

EQT stated that, under its ownership, the company's management team was strengthened and nine new stores were opened. It also introduced various sales initiatives and achieved sales growth of 25% in the last three years, according to the private equity firm.

The management team will remain the same following the transaction.

Previous funding
According to unquote" data, EQT bought a 47% stake in Sausalitos in March 2008, with founder Thomas Hirschberger remaining as joint owner. EQT used its Expansion Capital II fund to provide mezzanine finance to support the deal, which also included an equity commitment. EY advised EQT on the transaction.

Company
Founded in 1994 by Thomas Hirschberger, Sausalitos is a casual gastro pub chain with 27 locations across Germany. Stores have a common branding and interior design following a Mexican theme. The company targets mainly students and young professionals in the 18-30 age range. It employs approximately 900 full- and part-time staff, and is headquartered in Munich.

People
Michael Föcking is a partner at EQT and adviser to the EQT Expansion Capital II Fund.

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• Topics
• DACH
• Consumer
• Exits
• Buyouts
• Secondary buyout
• Germany
• EQT
• Ergon Capital Partners