CVC to take 29.99% stake in Deoleo ahead of takeover bid

The transaction values Deoleo at €439m, below its current market capitalisation of €456m. 

The GP will acquire Bankia's 16.5% share, the 4.58% held by Banco Mare Nostrum (BNM) and the 8.64% stake held by Dcoop.  

Prior to launching a full takeover, CVC will pursue a refinancing of the asset, which currently has debt of around €500m on its books. The refinancing will include a bullet loan with a seven-year maturity.

Shareholders targeted for the upcoming takeover offer will be offered the same terms as those agreed with Bankia, BNM and Dcoop. Remaining stakeholders include CaixaBank, Unicaja Banco and Daniel Klein, former vice president of the firm.

CVC emerged as the favoured bidder for the asset earlier this month, having made the strongest offer. The company was put up for sale by Spanish banks in July last year, with JP Morgan running the sale process. The asset attracted the attention of several private equity firms, including Italy's state-supported Fondo Strategico Italiano.

The sale took a political turn when Italy's new prime minister Matteo Renzi expressed his support for Fondo Strategico's bid for the firm, which includes Italian brands Bertolli, Carapelli and Sasso. The deal had caught the eye of Spanish politicians too, after it was suggested that the government take a stake in the company to avoid its break-up.

Company
Founded in 1990 and based in Madrid, Deoleo is a food group and the largest olive oil company in the world. The group manufactures, distributes and retails olive oils, vegetable oils, condiments and olives. Deoleo has grown acquisitively, buying brands including American Rice in 2003 and Bertolli from Unilever in 2008.

In 2009, the firm underwent a total replacement of top management and began a restructuring phase as a result of the financial crisis. In 2010, Deoleo completed several capital increases and sold its rice business. 

The firm primarily serves the Spanish, Italian, Portuguese, US, Mexican and Dutch markets. 

People
Pablo Costi Ruíz is managing director for Spain at CVC.

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