ProA Capital partially exits Grupo Vips

The acquisition of Sigla – the parent company of Grupo Vips – was made through Food Service Project, a wholly owned subsidiary of Alsea and majority shareholder of restaurant brands franchise Zena.

The current shareholders of Grupo Vips, the Arango family (which owned a 70% stake) and Spanish GP ProA (which controlled the remaining 30% holding), will reinvest €75m through a capital increase in Food Service Project, becoming minority shareholders in the company with a participation of approximately 8%.

According to a statement, Alsea Zena and Grupo Vips will integrate their businesses in Spain and Portugal, reaching EBITDA in excess of €100m and revenues of €800m in 2018, while employing a staff of around 20,000 people. The combined group will operate 1,000 restaurants and manage a total of 10 brands in the Iberian market: Fosters Hollywood, Vips, Domino's Pizza, Starbucks, Ginos, Burger King, TGI Fridays, Lavaca, Cañas y Tapas and Wagamama.

ProA acquired a 30% stake in Vips from Goldman Sachs Private Equity in September 2016. The deal saw Goldman Sachs fully exit its minority stake after a 10-year holding period, while the Arango family retained the majority stake in the business. ProA drew capital from its 2014-vintage vehicle, ProA Capital Iberian Buyout Fund II.

Company
Headquartered in Madrid, Grupo Vips was founded by the Arango family in 1969. The company operates 450 restaurants and cafes and manages five brands: Vips Cafes, Vips Smart, Ginos, Starbucks, TGI Fridays and Wagamama. The company employs 9,600 people and generated revenues of €415m in 2017.

People
Alsea – Alberto Torrado (chair).
Grupo Vips – Plácido Arango García-Urtiaga (chair)

Advisers
Acquirer – ING (corporate finance); Garrigues (legal); Cuatrecasas (legal).
Vendor – Linklaters (legal); EY (financial due diligence).

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• Topics
• Exits
• Southern Europe
• Consumer
• ProA Capital
• Spain
• Trade sale