Axcel exits VPG and fully realises fund

Mikkel Stern-Peltz
12 January 2015

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Danish GP Axcel has sold pet food producer Vital Petfood Group (VPG) to the companyтs management, Axcel partner and VPG board member Per Christensen, and has now fully realised the 2000-vintage Axcel II fund.

The exit comes 14 years after Axcel acquired the Scandinavian company, with reports suggesting VPG was sold for DKK 150-200m, though debt of around DKK 200m held by Nordea and FIH remains in the company.

The sale was not announced publicly, but Per Christensen confirmed the transaction.

VPG was the last remaining portfolio company in the DKK 2.5bn Axcel II vehicle, which is now fully realised.

The GP is likely to begin fundraising for a fifth fund in late 2015 or early 2016, as unquote" data shows the Copenhagen-based firm has raised a new vehicle every fifth year since 1995.

Axcel's sale of VPG is its third sale of poorly performing portfolio companies since August, when it sold troubled hardwood floor maker Junckers to the business's management, followed by the handing over of fashion retailer Noa Noa to new management.

Previous funding
VPG was one of the first acquisitions made through Axcel II when the GP took an 81% stake in the company in 2000.

The company underwent a debt restructuring process around 2004, having made losses since 2001. In 2008, it was split into two companies: Best Friend and Vital Petfood Group.

Company
Founded in 1993, VPG produces pet food and accessories, with production and sales across the Nordic region.

The Hasselager-based business had DKK 533m in revenues in 2013 with an EBITDA of DKK 47.3m. It employs around 200 people.

People
Per Christensen is a partner at Axcel and Paul van der Raad is the CEO of VPG.