PAI acquires stake in Labeyrie

Ellie Pullen
16 June 2014

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PAI partners has acquired a stake in Labeyrie Fine Foods from LBO France, with the aim of becoming an equal shareholder in the business alongside French food cooperative Lur Berri.

The transaction is valued in the region of €500m, according to French daily Les Echos – equivalent to 8.2x EBITDA.

Following the transaction, the capital structure of Labeyrie is expected to eventually comprise equal stakes held by PAI and Lur Berri with the remainder being held by management.

LBO France is believed to be selling its entire 33% stake. Lur Berri is currently the majority shareholder in Labeyrie, with a stake of around 62.9%.

LBO France acquired the business in January 2012, buying a 33% stake via its White Knight VIII fund in a deal that reportedly valued the business at around €600m.

The holding was previously named Alfesca and was owned by Icelandic investor Kjalar Invest, Icelandic bank Kaupthing and Lur Berri, the latter of which held a 49.8% stake. Lur Berri subsequently increased its shareholding in Labeyrie when LBO France entered the company's capital structure.

In March this year, Labeyrie issued €275m of senior secured notes to refinance its existing facilities. LBO France partially realised its investment through the refinancing, as part of the proceeds were earmarked towards repaying subordinated shareholder convertible bonds (€59.5m overall, leaving roughly €21m outstanding).

Company
Founded in 1946 and headquartered in Came, Labeyrie is a producer of luxury food products such as smoked salmon, foie gras and blinis. The company operates 15 production sites, 13 of which are located in France.

Labeyrie's main markets are France and the UK, though it also distributes to the Benelux region, Switzerland, Italy and 40 other countries. The company employs 4,100 staff and generated turnover of €757m in 2013, as well as an EBITDA of €72m.

At the time of LBO France's acquisition, Labeyrie generated €700m in turnover and a €58m EBITDA.

People
Xavier Govare is the CEO of Labeyrie; Olivier Gemin is the CEO of Lur Berri. Frédéric Stévenin is a partner at PAI, responsible for the firm's investments in the food and consumer goods sector.

Advisers
Vendor - Mayer Brown, Xavier Jaspar, Emily Pennec (Legal).