PAI buys Grand Frais grocery business EEF

Alessia Argentieri
20 November 2020

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PAI Partners has acquired a majority stake in Euro Ethnic Foods (EEF), the grocery business of Grand Frais.

Unquote understands that the deal gives the company an enterprise value of around €1bn.

According to press reports, EEF generates EBITDA of approximately €80m, which would imply a valuation of 12.5x.

PAI invested in EEF alongside founders Léo and Patrick Bahadourian. Following the deal, PAI will hold a 60% stake in EEF, while the founders will own the remaining 40% and continue to be involved in the strategy and development of the business.

The company will be led by the current management team composed of CEO Christelle Le Hir and managing director Arnaud Pascal.

The investment was made by the GP from its €5bn fund PAI Europe VII, Unquote understands.

This is the ninth deal inked by the vehicle and shortly follows its eighth acquisition, the purchase of Addo Food and Winterbotham Darby, bought by the GP to create a UK-based chilled food platform. In addition, PAI has recently bought Angulas Aguinaga from Portobello Capital in a €400-450m deal, investing via its PAI Mid-Market Fund.

PAI intends to support EEF in accelerating its growth plans, both organically and via external acquisitions, while opening new stores and developing its B2B operations in France and internationally.

The GP also plans to help the company implement selective vertical integration, with the aim of covering its entire value chain, from production to sales in store.

EEF manages the grocery business of Grand Frais, while Prosol controls its fruit, vegetables, dairy, fish and meat division. Prosol was acquired by Ardian via its €4.5bn Ardian LBO VI fund in April 2017 for an EV of around €1.5bn. The transaction was supported by a €859m debt package, comprising a €759m B tranche provided by Crédit Agricole CIB, Natixis and BNP Paribas, and a €100m capex line.

Company
EEF owns and operates the grocery section of food retailer Grand Frais across France, Belgium and Luxembourg.

The company expects to generate revenues of €450m in 2020.

People
PAI Partners – Gaëlle d'Engremont (partner, head of food & consumer); Bertrand Monier (principal in the food & consumer team).
Euro Ethnic Foods – Christelle Le Hir (CEO); Arnaud Pascal (managing director).