
KKR-backed Selecta buys Argenta
KKR portfolio company Selecta Group has acquired Italian coffee and vending machine company Gruppo Argenta from Motion Equity Partners for an undisclosed sum.
KKR will initially acquire Argenta through an entity it controls, though Selecta has the right to acquire Argenta directly from the seller in KKR's place or from KKR after completion.
It is expected that the companies' operations will be combined to create a pan-European coffee and vending machine provider with a presence in 16 countries.
The combined group would have pro-forma EBITDA of €240m from pro-forma sales of €1.5bn, excluding synergies from the integration of Pelican Rouge, which are expected to contribute €45m. KKR supported Selecta's acquisition of Pelican Rouge in March 2017 for an undisclosed sum.
Selecta will diversify its geographical offering with the add-on of Argenta, as the group currently has no operations in Italy.
Previous funding
In December 2003, Quadrivio and San Paolo IMI acquired Argenta for an enterprise value of €56m. The company employed 600 people and generated €6.2m in EBITDA from sales of €59.4m at the time.
In 2005, Advent International acquired 65% of the company for an undisclosed sum with co-investment from PM & Partners, while the company's management retained the remaining 35%.
A consortium of Ardian, Motion Equity Partners (then Cognetas) and Investitori Associati then bought the business from Advent in December 2007; the deal was estimated to be worth around €680m with a debt package of €450-500m. The company employed 1,150 people by then and generated a €35m EBITDA from €150m in sales.
Motion Equity Partners invested an additional €65m in the company in January 2010 as part of a debt restructuring. KKR supported another debt and equity restructuring in January 2014 with a €100m investment. Motion Equity Partners also supported this transaction with €10m and KKR retained a minority stake.
Company
Founded in 1968 and based in Carpi, Modena, Argenta supplies vending machines to offices, public institutions, universities and outdoor locations such as petrol stations and airports. The firm's automatic vending machines dispense hot and cold drinks and snacks.
The company has 18 operational centres across Italy and employs 1,200 staff. In 2016, sales were €225m, up from the €199.2m recorded in 2015. EBITDA increased from €47.1m to €53.1m in the same period.
People
Selecta Group – David Hamill (chairman); David Flochel (CEO).
Gruppo Argenta – Stefano Fanti (CEO).
Advisers
Acquirer – Lazard (financial due diligence); Kirkland & Ellis (legal); Simpson Thacher & Bartlett (legal); Ropes & Gray (legal).
Vendor – Mediobanca (financial due diligence); UniCredit (financial due diligence); Pedersoli Studio Legale (legal); Linklaters (legal).
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