NETHERLANDS - 3i to exit Refresco

FL Group will become the largest shareholder in the company with a 49% holding. Among other investors are Vifilfell hf. and the management of Refresco. FL Group's investment totals EUR 56m, paid in cash. The acquisition is subject to the approval of the competition authorities in Germany. Refresco employs 1,200 people across five countries and is recognised as the second largest manufacturer of private label fruit juices and soft drinks in Europe. The company's key markets are Germany, France, Spain, Portugal, the Netherlands and Finland, where Refresco´s main customers are leading European service retailers and hard discounters. Refresco's primary business involves the manufacture of private label fruit juices and other soft drinks as well as contract-manufacturing for international A-Brand companies. Refresco also manufactures under its own label. In 2005 the company generated gross sales of EUR 606m and EBITDA of EUR 64,1m.

Refresco has performed strongly in recent years, out-performing the market, growing by 10% a year between 2000 and 2004. According to the management consulting company Booz Allen Hamilton (BAH) the European market grew by around 4% annually, whilst growth for private label was around 8% for the same period. It is anticipated that the business will continue to grow and expand its operations.

Over the next few years it is estimated by BAH that the market for Refresco's main sectors will grow by 6-8% as a result of the markets continuing to witness an increase in consolidation amongst service retailers and the rising market share of hard discounters in Europe. One key area of potential expansion for Refresco is the fact that consumers are increasingly demanding healthy drinks and convenient packaging, an area in which the company has been a leading developer.

3i acquired the company in 2003 for EUR 240m from a consortium of investors including NeSBIC.

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