CapVest private equity fund will acquire italy’s Balconi, a company producing cakes and sweet snacks, through its Irish portfolio company Valeo Foods. This is the end of an auction started many months ago (see here a previous post by BeBeez).
Balconi is controlled by Italy’s Clessidra private equity firm with an 80.2% stake and by the Balconi family. Valeo Foods will acquire the whole capital in the company for a non-disclosed sum. However word is that the Italian company has been valued around 230 million euros or 9x its 2014 ebitda of 26 millions (from 15.5 millions in 2013) with 2014 revenues seen at 150 millions (from 130 millions).
Valeo’s bid beated the ones by Lion Capital and Chequers Capital–Igi sgr. Balconi’s ceo Giuseppe Dossena will keep on manageing the company as well as the rest of the management team.
Mediobanca acted as financial advisor for Clessidra sgr and the Balconi family, D’Urso Gatti e Bianchi law firm supported Clessidra on legal issues while Linklaters law firm advised the Balcon family. Deloitte and studio Alonzo Committeri & Partners were advisors for accounting and fiscal issues. Kirkland & Ellis e Labruna Mazziotti Segni law firmas supported Valeo on the legal issues. Finally Bain & Company conducted the due diligence on the deal, while PwC provided accounting and tax advise.
Valeo Foods owns quite strong brands in Ireland such as Jacobs Biscuits, canned beans and pees Batchelors Beans and Pasta Roma, After the deal Valeo’s turnover will reach about 700 million euros with 1,000 staff. The buyout is consistent with Valeo’s recent strategy of broadening its reach into Europe, reducing its reliance on the still-strained Irish consumer market. In April 2014 Valeo Foods acquired Rowse, a UK honey brand., while in September bought the Kelkin and Robert Roberts brands from the conglomerate, DCC.