Stirling Square buys Verescence in SBO

Stirling Square is currently investing via its Stirling Square Capital Partners IV vehicle, which held a €600m first close in May this year.

In Q3 last year, Verescence received €45m in funding issued by a pool of four banks (LCL, HSBC, BNP Paribas, Palatine) and two institutional investors (Aviva Investors and Zencap Asset Management). The senior package comprised a €15m rolling credit facility and a €30m private placement with a five-year maturity.

The transaction was designed to optimise Verescence's liquidity levels and financing costs, and to fund its transformation plan involving significant investments totalling €100m over the next three years.

Previous funding
Oaktree bought an 80% stake in Verescence in 2010, when it was known as Saint Gobain Desjonqueres (SGD), as part of a turnaround operation. SGD's creditors took a 20% stake in exchange for writing off 63% of the group's debt, reducing it to €225m. Terms of the deal remained undisclosed at the time, though French press reports suggested that the company was acquired for €140m. Of that sum, €100m was provided in the form of a seven-year loan. The financing arrangement allowed the company to raise a further €90m of debt if required.

Company
With roots dating back 1896, Verescence is a glass packaging manufacturer for the perfumery and cosmetics industry. Based in Puteaux, it operates three glass production and four decoration facilities in Europe and North America, producing 500 million bottles every year.

The business employed 2,300 people across the globe and registered sales in excess of €280m in 2017. According to a statement published in May 2017, the business employed 2,950 people worldwide and achieved revenues of €330m in 2016.

People
Verescence – Thomas Riou (CEO).

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• Topics
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• Stirling Square Capital Partners
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