Oaktree's Stock Spirits to float

Ellie Pullen
27 September 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

Stock Spirits Group, the Buckinghamshire-based drinks maker backed by Oaktree Capital Management, has announced its intention to raise approximately ТЃ52m in an IPO on the London Stock Exchange.

The offer will comprise both new shares and existing shares held by Oaktree and the company's current and former management. Oaktree is expected to remain the company's largest majority shareholder following the flotation, but will offer an over-allotment option of 15% from its shares.

Stock Spirits intends to use the proceeds from the IPO to repay a portion of its debt, which stood at €30.7m at the end of 2012 and €104.2m at the end of June 2013.

The company expects the IPO to achieve a minimum free float of 25%. Oaktree and Stock Spirits have agreed to a lock-up period of 180 days following the flotation.

Stock Spirits' IPO is expected to take place sometime next month. JP Morgan Securities and Nomura International have been appointed joint sponsors, joint global co-ordinators and joint bookrunners for the flotation. Jefferies International is also acting as joint bookrunner, while Joh. Berenberg Gossler & Co is lead manager.

Founded in 2007, Stock Spirits is headquartered in Buckinghamshire. The group recorded turnover of €292.4m in 2012, as well as an EBITDA of €68.8m. For the first half of 2013, Stock Spirits generated revenues of €153.1m and a €34.3m EBITDA.

The business was created when Oaktree acquired the spirits subsidiary of Germany-based Eckes & Stock and merged it with existing portfolio company Polmos Lublin. Oaktree had acquired Polmos Lublin in a take-private deal, delisting it from the Warsaw Stock Exchange, in January of the previous year for €24m, according to unquote" data.

Stock Spirits' main market is in Central and Eastern Europe. Stock Spirits claims to hold the largest market share for spirits in Poland and the Czech Republic, and also claims to be the leading vodka company for both countries. Brands under Stock Spirits' ownership include 1906 vodka, Božkov liqueurs, Hammer Head whisky and Key rum. Chris Heath is Stock Spirits' CEO.