Altor Fund II GP limited (“Altor”), EuroManaCo (the current investment vehicle of Euro Cater employees) and inco Amba have signed a definitive agreement to sell Euro Cater, a Nordic leader within food service, to a group of reinvesting employees that have entered into a partnership with Intermediate Capital Group plc (“ICG”).
Altor Fund II GP limited (“Altor”), EuroManaCo (the current investment vehicle of Euro Cater employees) and inco Amba have signed a definitive agreement to sell Euro Cater, a Nordic leader within food service, to a group of reinvesting employees that have entered into a partnership with Intermediate Capital Group plc (“ICG”).
With its roots dating back to the late 1950s, Euro Cater is a leading Nordic food service company with operations in Denmark and Sweden. Headquartered in Aalborg, Euro Cater today has around 1,750 employees. Since the investment by Altor in 2006, the revenue has grown from c. DKK 2.7 billion to DKK 7.2 billion, driven by organic growth and several strategic acquisitions, with EBITDA increasing from c. DKK 200 million to DKK 500 million.
Stefan Linder, Partner at Altor Equity Partners, comments: “During the last six years, Euro Cater has shown organic growth throughout the economic downturn. This has been complemented by several transformational acquisitions, including the entry into Sweden when Svensk Cater was acquired in 2007 and the entry into cash and carry when inco was acquired in 2011. The partnership with management has been very successful, and we have together more than doubled the revenue and EBITDA of Euro Cater, yielding an attractive return to Altor’s investors.”
Steen D. Pedersen, CEO of Dansk Cater, comments: “We are pleased that ICG will be part of our future, and at the same time we thank Altor for the exciting journey we have been on together over the last six years. It is a strong signal to all of our colleagues, customers and suppliers that first Altor and then ICG have chosen to invest in Euro Cater and share our belief that the way forward in the industry is through service, quality and innovation with our customers and suppliers.”
The transaction is expected to close within the second quarter of 2013 and is subject to customary closing conditions such as approval from competition authorities.
J.P. Morgan has acted as financial adviser and Bech-Bruun as legal advisor for the sellers.
About Altor
Altor Equity Partners act as investment advisor to the Altor funds. Since inception, the Altor funds have invested in close to 40 companies with a committed capital of EUR 3,800 million. The investments have been made in Nordic mid-cap companies with focus on value creation through growth initiatives and operational improvements. Among the investments are Lindorff, Helly Hansen, Apotek Hjärtat, Carnegie, Papyrus, Dustin, Qmatic, Piab, Byggmax, Ålö, Max Matthiessen, Elixia and CTEK.
altor.com
About Euro Cater
Euro Cater distribute frozen and chilled food as well as groceries and canned goods to professional kitchens in Sweden and Denmark. The foundation of the existing Euro Cater was established in 1986, but the company’s roots date back to the late 1950s. Euro Cater has a total of 36 Distribution and Cash & Carry sites that are different with respect to type of distribution and product range, but share the common goal of providing a high level of service and delivering high-quality products. Furthermore, a key success parameter has been the local knowledge as well as the close relationship with the customers.
www.euro-cater.com
