21 Centrale-backed DGF bolts on Val de Seine, refinances debt

The deal marks the seventh bolt on completed with 21 Centrale's backing. The acquisition increases DGF's sales by €22m, bringing its total sales up to €220m, compared with €130m when 21 Centrale entered the group. In the long run, the group is aiming to achieve €300m in annual sales, the GP said in a statement. 

With the transaction, 21 Centrale is pursuing its expansion strategy for DGF, which notably includes plans to increase the group's presence in Latin America. Around 13% of the group's sales are currently made internationally.

DGF also secured a refinancing with Permira Debt Managers. The new package consists of a €62m unitranche debt, including an undrawn capex line of €30m.

The investment line should enable DGF to speed up its acquisition strategy, with other bolt-ons to follow in the coming months, according to 21 Centrale. The group is also planning to open a new warehouse in March 2017.

Previous funding
In 2009, Qualium backed the management buyout of DGF in a deal valued at €123m. Qualium took a majority stake in the business alongside the management team, which was led by president Jean-Luc Champaud and manager Eric Chary. The majority of the private owners also reinvested in the company. A debt package was provided by Societe Generale at the time.

Five years later, Qualium agreed to sell its holding in DGF to 21 Centrale, which in turn acquired a majority stake, investing in the business alongside the management team led by president Bruno Rouxel. Capzanine provided subordinated debt alongside the equity backer, in addition to a senior debt package renewed by Societe Generale.

Company
Founded in 1986 and based in Chanteloup-les-Vignes, DGF is a food manufacturing group specialised in bakery and pastry products and ingredients, servicing 25,000 clients. The business has a network of 30 distributors and a market presence in 60 countries, notably in Canada and Japan. The group currently generates close to €200m in revenues and employs 390 people, according to the GP.

Val de Seine is also a food manufacturing group covering mostly Paris and the surrounding areas, and servicing a customer base including bakers, pastry chefs, caterers, ice-cream makers and local authorities. The group currently generates €22m in sales, according to the GP.

People
21 Centrale Partners – Stéphane Perriquet (managing partner); Fabrice Voituron (partner); Amelie Gosselin-Furno (investment manager).
Permira Debt Managers – David Hirschmann (head of private credit); Roy Awad (investment manager).

Advisers
Equity – Oddo Corporate Finance (corporate finance); De Pardieu Brocas Maffei (legal); Eight Advisory (financial due diligence); Indefi (commercial due diligence). 
Company – Alerion (legal).
Debt – Nabarro & Hinge (legal).

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• 21 Centrale Partners
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