FRANCE - Duke Street Capital exits Marie Brizard

Bordeaux-based Marie Brizard was founded in 1755 and is famous for its own brand of anisette, fruit liqueurs and cocktail mixers. In addition, the group produces and distributes a number of alcoholic brands including Old Lady's Gin, Gautier Cognac and non-alcoholic brands such as Pulco and Sirop Sport. It also distributes two externally sourced products, La Mauny Rum and Ferreira Port. The group sells some 200 million bottles, via two distribution subsidiaries in France and Spain and exports to over 120 countries. The company has been listed on Eurolist since 1984. It employs a staff of 700 people and generated a turnover of EUR 334m, with a EUR 38.5m EBITDA in 2005.

Duke Street Capital France 2 acquired a 53.18% stake in Marie Brizard & Roger International (MBRI) in 2000. The company was only able to avoid calling in the receivers a year beforehand when its creditors converted outstanding debts into equity stakes in the business. ICG, which acquired a 35% equity stake in the company, led the group of financiers including Lion Expansion, SDR, Cetrest, Goldman Sachs, Natexis, Crédit Agricole and Siparex. The shares held by the financial institutions were sold to Duke Street Capital in the process of the current transaction at a price of EUR 64 per share, valuing the company at just over FFr 500m. The private equity house subsequently increased its shareholding to 67.86% and then 69.3%, first as part of the mandatory tender offer and later by oversubscribing to the capital increase to fund the acquisition of Les Chais Beaucairois.

In 2002, MBRI acquired Le Chais Beaucairois, the wine division of Groupe Casino, for some EUR 22.6m. Later on in the year, Duke Street Capital gave MBRI the green light to refinance the acquisition of Chais Beaucairois. Earlier this year, MBRI purchased William Pitters International, which specialises in the production and distribution of leading scotch whisky and tequila brands, William Peel and San Jose. It also produces Pitterson, the market-leading range of cocktail mixers in France and a range of other spirits including vodka, gin, port, rum and tequila. WPI had sales of EUR 105m in 2004. MBRI, whose net debt at the end of 2004 was less than EUR 11m, financed the acquisition entirely through a debt facility put in place by BNP Paribas.

Last year, Marie Brizard launched a EUR 143m loan in connection with its refinancing and acquisition of William Pitters International. The deal was moderately over-subscribed via mandated lead arranger BNP Paribas. The facility comprised an EUR 80m seven-year term loan A, EUR 30m eight-year term loan B and a EUR 33m seven-year working capital facility. Debt margins were in the region of 170bps to 200bps.

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