ProA buys 30% stake in Grupo Vips

The deal saw Goldman Sachs fully exit its minority stake after a 10-year holding period, while the founding Arango family will continue to retain its 70% stake in the business. ProA drew capital from its 2014-vintage vehicle, Iberian Buyout Fund II.

According to local press reports, the GP acquired the stake in the business following an auction process including Artá Capital, Trilantic Capital Partners and Bridgepoint.

Following the transaction, Vips' shareholders will subscribe to a capital increase totalling €41.5m. The transaction will see the majority shareholders convert their preferred equity into ordinary shares for a total capital increase of €29m, while ProA will provide an additional equity ticket of €12.5m.

The company intends to use the fresh capital to boost the expansion of two of its flagship products, Vips and Ginos, through a €25m capital injection across 2016 and 2017. Furthermore, the management team aims to sign new partnerships with international brands, including Wagamama, and open new stores across Spain and Portugal.

Previous funding
In July 2006, Goldman Sachs acquired a 30% stake in the business aiming to boost the company's expansion through the opening of new stores across Spain, as well as Starbucks franchises in Spain and France.

Company
Founded in 1969, Grupo Vips is a franchise retail store and restaurants operator based in Madrid. The business employs 9,300 people and manages two proprietary brands, Vips and Vipsmart, alongside several other brands in franchising, including Ginos, Starbucks, British Sandwich Factory and Wagamama.

The company posted a turnover of €377.6m in 2015, with €23m of EBITDA.

People
ProA Capital – Fernando Ortiz (managing partner); Santiago Gómez (partner).
Goldman Sachs Private Equity – Michele Titi-Cappelli (managing director).
Grupo Vips – Plácido Arango (chair).

Advisers
Equity – Optima Corporate (corporate finance); Fidenzis Abogados Asesores (legal); Linklaters (legal); EY (tax).
Vendor & Company – Altamar Advisory Partners (M&A); Garrigues y Uría (legal).

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• Topics
• Expansion
• Consumer
• Southern Europe
• Spain
• Goldman Sachs
• ProA Capital