Black Toro sells Farggi Menorquina to Cheyne

Debt specialist Cheyne Capital initially entered the company's share capital in March 2019, when it bought its bank loans and provided new resources. The loans were subsequently capitalised, according to the company.

Following this deal with Balck Toro, Cheyne will increase its stake in the company to around 97%, while the remainder will be retained by the company's founding Farga family. In addition, the Farga family will regain full control of the restaurant division of the company.

Black Toro acquired Grupo Farga, which owns the Farggi brand, by providing an equity and debt package in April 2017. The deal saw the GP inject a €40m ticket into the business via its Black Toro Capital II fund, comprising €10m in equity and a €30m unitranche, which included a senior debt structure, liquidation preference and convertibility at Black Toro's option. The Farga family retained a small minority of around 3%.

The funding was used to finance the acquisition of La Menorquina, the Iberian branch of Canary Islands-based ice cream manufacturer Grupo Kalise Menorquina and merge it with Grupo Farga's ice-cream-dedicated subsidiary Farggi, creating the Farggi Menorquina group. The Kalise family retained the Canary Isalnds business of the company.

Company
Established in 1957, Grupo Farga is an ice cream and frozen dessert manufacturer, which markets its products under the brand Farggi. It has a strong presence in Spain and the rest of Europe, selling its products to national and international retailers, including Unilever, Tesco, Lidl and Mercadona. Additionally, Farggi manages a chain of 55 Farggi Cafes with ice cream corners and five high-end Farga restaurants.

Founded in 1940 and based in Barcelona, La Menorquina is an ice cream maker, which sell its products to restaurants, hotels and supermarkets.

In addition to Farggi and La Menorquina, the group also markets its products under the Frigécrème brand.

The three brands' ice cream is sold in 40 countries worldwide, through a network of 77 distributors across Spain and 12 subsidiaries.

The group's ice cream division generates annual revenues of around €80m, while the cafes and restaurants business generates turnover of approximately €30m.

People
Black Toro Capital – Ramon Betolaza (managing partner).
Grupo Farga – Eduard Farga (president).

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