CVC increases Deoleo stake to 48%

The GP has acquired a further 18.1% of the business, bringing its total stake to 48%.

The announcement comes shortly after CVC increased its offer for Deoleo to 39.5 cents per share, in line with the fair price recommended by stock market regulator Comisión Nacional del Mercado de Valores (CNMV). 

CVC purchased 29.99% of the company's shares at 38 cents apiece in April 2014, a price valuing the company at €439m. The offer was for shares owned by Bankia, Banco Mare Nostrum (BNM) and Dcoop. CNMV approved the deal in November, despite agreeing with shareholder objections that the price undervalued the business.

At the time of its initial offer, CVC stated it intended to pursue a refinancing of the asset, which currently has debt of around €500m on its books, prior to launching a full takeover. The refinancing will include a bullet loan with a seven-year maturity. The GP has plans to grow the company internationally through a buy-and-build strategy.

CVC emerged as the favoured bidder for the asset in April 2014, 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.

Company
Founded in 1990 and based in Madrid, Deoleo 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.

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

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• PIPEs
• Consumer
• Southern Europe
• CVC Capital Partners
• Spain
• Unq2015Feb