GED, a Private Equity group operating in the middle market segment, has successfully completed the second investment of its new Private Equity fund (GED V España FCR) after acquiring 90% of Araven SL. In addition to GED, Oquendo has also participated in the operation. It holds a minority interest in the company and moreover contributes resources by way of mezzanine debt.
The sellers are Ibercaja (who was the majority shareholder of the company located in Aragon) and Capital Innovación y Crecimiento y A Capital Activos Empresariales (regional private equity funds). These entities acquired Araven S.L. in 2006. The operation takes place once the investment objectives have been met both in terms of profitability and compliance with the strategic plan of the company, based on internationalization and the launching of new products.
With this new investment, GED reaffirms its commitment to invest in industrial and regional companies (the first investment of the GED V España FCR fund was in Discefa in June 2016, which is the largest group specialized in the processing and distribution of high quality frozen octopus of Galician origin).
The operation has been advised by professional services firm KPMG, law firm Gómez-Acebo y Pombo, King & Wood Mallesons and Garrigues.
Araven’s growth and international development
Araven S.L. is headquartered in Zaragoza and is a leading company in the design, manufacture and commercialization of products for the food service industry and retail equipment sector. Internationalization and innovation are two of its main features.
The company, created in 1976, caters to the needs of food industry professionals around the world. Araven has become the leading company in the sector of food preservation and handling in Europe, offering a range of more than 150 entirely differentiated products with which to equip cold storage rooms and kitchens of all types of food service establishments.
In addition, the company is present with its products in major distribution chains. The company launched its first shopping cart in 1987 and strengthened its leadership with the Shop & Roll line, started in 2005 with the first shopping basket on wheels with a telescopic handle patented and marketed in the world. Two years ago Araven once again surprised the industry with the innovative Loop shopping cart.
Araven ended the financial year 2016 surpassing its objectives, with a turnover of €22.3 M. At present, 72% of its revenue is generated outside Spain (compared to 45% in 2007). It exports its production to 70 countries across five continents.
Company sources have expressed satisfaction with the agreement reached with GED. "The strategic plans and projects of the company will be reinforced with this operation, which contributes continuity and stability to the company and guarantees the important investments that Araven wants to undertake in the future." Araven points out that the agreement ensures the continuity of the current staff – at present made up of 58 employees - and the company's "roots in Aragon".
Enrique Centelles-Satrústegui, managing partner of GED V España FCR and the person responsible for leading the operation, states: "Araven S.L. fully complies with the investment parameters of its new GED V España FCR fund: medium- sized ("lower mid-market") industrial companies with a high growth potential, who are leaders in their sector of activity and who have a strong international component. Our objective is to support the development and expansion of a company that has an outstanding management team and excellent medium and long term prospects based on a clearly defined business strategy and a differentiated top-level product”.
The entity expects to make between 8 and 10 investments in total with this vehicle. The type of operations that will be carried out will be "buy-outs" and capital expansion. With this fund, the volume of assets managed by GED is around €700 M, which consolidates this private equity group as one of the leaders in the Spanish low mid-market segment.
About GED (www.gedcapital.com)
GED is an independent Private Equity management company founded in 1996. It currently manages some €700 M 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.
About Oquendo (www.oquendocapital.com)
Since 2007 Oquendo is a pioneer in offering alternative financing to Spanish medium-sized companies using mezzanine debt, participation loans and preferred capital in the context of corporate transactions and expansion plans.
To date, Oquendo has invested around €250 M in 21 companies.
Operation Advisors: Corporate: KPMG Financial: Deloitte Legal: Gómez-Acebo & Pombo (sellers) KWM (GED) Garrigues (Oquendo)
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