Lone Star purchases majority stake in Saeco

The deal saw Lone Star buy the controlling stake in the business, while its portfolio company N&W acquired a minority stake. The deal concerns the vending machine branch of Italy-based Saeco International Group, which also manages Saeco Roast & Ground as well as Saeco Full Auto & Manual Espresso.

As part of the deal, N&W will take also acquire the licences for the Saeco and Gaggia brands, for professional use only.

Following the transaction, Philips will continue to manage the company's home-care branch.

Debt
N&W supported the transaction through the issue of a €300m first-lien bond and subsequently a €100m second-lien bond. Goldman Sachs, Deuthsce Bank, Banca Imi and Crédit Agricole acted as joint bookrunners.

Previous funding
Philips acquired Saeco International Group from PAI Partners in 2009 for an estimated €200m. The deal followed a restructuring plan put in place alongside the company's lenders, BNP Paribas and JP Morgan, on the firm's €500m debt.

PAI originally acquired the business in May 2004 in an €825m MBO.

Company
Saeco International Group is an Italian manufacturer of manual, super-automatic and capsule espresso machines, headquartered in Gaggio Montano, near Bologna.

Founded in 1981, the company employs a staff of 300.

People
N&W Global Vending – Andrea Zocchi (CEO).

Advisers
Acquirer – EY (corporate finance); Chiomenti (legal); Studio Di Tanno e Associati (tax).
Vendor – Gianni Origoni Grippo Cappelli (legal).

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• Topics
• Buyouts
• Industrials
• Southern Europe
• Italy