GED, Private Equity group operating in the middle market segment, has successfully carried out the first investment of its new Private Equity Fund (GED V Spain FCR) after acquiring 71% of DISCEFA. In addition to GED, Oquendo with a mixed structure of equity and mezzanine debt, has also participated in the operation.
Discefa, which is the largest company specialized in the processing and distribution of high-quality frozen octopus, was founded in 1982 and is located in the city of A Coruna. According to its latest financial statements, it had a turnover of €62.3 M and an EBITDA (earnings before interest, taxes, depreciation and amortization) of 14 million at year-end 2015.
Discefa is in line with the investment parameters of the new GED V Spain FCR fund: medium-sized industrial companies ("lower mid-market") with growth potential, leaders in their sector and who are in the process of internationalization. In this regard, at present about 75% of Discefa’s turnover in the past year was generated outside Spain, in markets where the company has strong growth plans in place in order to take advantage of the increase in the consumption of its product registered in recent years.
Enrique Centelles Satrústegui, managing partner of GED V Spain FCR who is leading the operation, said: "We are very pleased to announce the acquisition of a majority stake in Discefa as it is the first operation we have performed with the new GED V Spain fund. Our intention for the coming years is to help consolidate Discefa‘s leadership in the domestic market, as well as to enhance and support its international expansion. The goal should be to increase even further the quality of the product offering for customers to become the most competitive in our targeted markets, relying on a comprehensive value proposition for the entire HORECA channel".
Discefa specializes in selling high quality frozen octopus and its long-term clients have been working with the company for an average of 15 years. It operates in its markets with several prestigious brands such as El Rey del Pulpo, Fribó, Pindusa and Algaravío.
Two more operations in 2016
The purchase of Discefa is the first operation carried out by GED through its new GED V Spain FCR fund, an investment structure set up at the end of 2015. GED managers expect to perform at least two more operations in the second half of 2016 and between 8 and 10 investments in total with this vehicle, amounting to between 15 and 25 million euros. The type of operations performed will be "buy-outs" and growth capital.
Currently, the GED V Spain fund (the private equity firm’s seventh fund) has secured investment commitments amounting to 100 million euros and it is expected to reach the target of 150 million euros ("final closing") during the second half of this year 2016. With the new fund, the volume of assets managed by GED is around 700 million, which consolidates the company as one of the leaders in the Spanish "low mid-market" segment.
DD buyer: PwC
Law firm buyer: KWM (Pablo Diaz Gridilla and Gonzalo Fernandez)
Mezzanine lawyers: Garrigues (Ildefonso Polo del Mármol)
Bank lawyers: Hogan Lovells (Jose Luis Vazquez)
GED Capital: Enrique Centelles Satrustegui (Managing Partner) and Rafael Lopez Armenta (Partner)
Oquendo Capital: Daniel Herrero (Managing Partner) and Leticia Bueno (Investment Director)
Advisor vendor: TeamOn (Javier Gonzalez Coello)
Vendor’s lawyer: Allen & Overy (Ignacio Hornedo)
About GED (www.gedcapital.com)
GED is an experienced independent management company founded in 1996. It currently manages some €700 million through different Private Equity, Infrastructure and Real Estate vehicles between the Iberian Peninsula and South Eastern Europe and has a portfolio of 36 holdings. GED has a universe of more than 50 domestic and foreign investors, including mainly pension funds, funds of funds, insurance companies, family offices and financial institutions.
Since 2007 Oquendo is a pioneer in providing alternative financing for small and medium Spanish companies, using mezzanine debt, participative loans and preferred equity in the context of corporate transactions and expansion plans. Oquendo to date has invested about €200 M in 15 companies.