GED Capital, a private equity group specialising in the middle-market segment in Spain, announced today the sale of its stake in Araven to CFS Brands, a US hospitality solutions company owned by private equity firm TJC.
Prior to the transaction, GED Capital carried out a carve-out of the shopping transport equipment business for retailers (baskets and shopping trolleys) that Araven had been operating. This way, GED Capital will continue to manage this business along with the visual merchandising solutions of Grupo OM under the Shop & Roll brand, which was integrated into the Araven Group in 2020. This activity is expected to reach a turnover of €48 million in 2024. Shop&Roll holds great potential for continued double-digit growth, with international sales already accounting for more than 50% of the company's business.
Based in Zaragoza, Araven is a Spanish company operating in the professional hospitality equipment business, with a leading position both nationally and internationally. It is a highly recognised and valued brand by customers thanks to the quality, service, innovation, and positioning of its extensive product range developed in recent years. Additionally, it enjoys great prestige and recognition from the best chefs and culinary schools both domestically and worldwide, collaborating, for example, with the Basque Culinary Center and Le Cordon Bleu.
Furthermore, its financial evolution since GED Capital’s entry in 2017 has been very positive, even during turbulent periods such as the pandemic (which directly affected hospitality businesses) and the recent increases in raw material costs. In 2023, it achieved a turnover of €20 million. This proves GED Capital’s solid management, which has successfully positioned the company as an international benchmark, thanks to the focus on product and commercial development, as well as global expansion. Araven markets its products in over 75 countries, with its international business contributing to more than 65% of sales.
With the sale of Araven, GED Capital completes the fourth divestment of its GED V fund, the second so far this year after the sale of Procubitos to Magnum at the beginning of 2024. At the same time, this is the first divestment of the GED VI fund. This partial divestment represents 1.2 times the original investment of the funds.
Rafael López Armenta, Managing Partner of Buy-out at GED Capital, said: "We are very proud that a US global like CFS Brands has recognised all the value we have added to Araven since our acquisition in 2017. This operation will help Araven continue to grow significantly and consolidate Zaragoza as a platform from which CFS Brands will drive much of its European business and the future growth of the multinational."
Advisors GED Capital: Rothschild&Co (Investment Bank), KPMG (Financial), Garrigues (Legal), Roca-Junyent (Tax) CFS: PWC (Financial and Tax), Winston&Strawn and Andersen (Legal)
About GED Capital (www.gedcapital.com)
GED Capital is an independent asset manager founded in 1996 that operates in the middle-market segment. It currently manages more than €1 billion through different Private Equity, Infrastructure and Venture Capital vehicles. GED Capital has a universe of over 500 domestic and foreign investors, including mainly pension funds, funds of funds, insurance companies, family offices and financial institutions.
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