Daniel Frijns
OXEYE MONTHIS
Riedel Drinks
Deal Type
Acquisition
Sector
Consumer
Completion Date
1st November 2017
Deal Value
Not disclosed
Company Background
Riedel is the market leading manufacturer of branded orange juices and non-carbonated fruit based soft drinks in the Netherlands
Deal Summary
OXEYE advised Standard Investment, a restructuring private equity firm, in two ways: (i) we acted as the M&A adviser to the buyer on the acquisition of the company and (ii) we arranged the bank finance for them to fund the acquisition. On the M&A side, we advised our client through the motions of a very competitive auction process against strategic buyers, whilst keeping up the pace and negotiating on the key value points at the same time. Our understanding of the dynamics of the food industry and our strong network in the juice category enabled us to support our client in developing an outstanding investment case for the transaction.
Value Added
As fruit juices were one of the first focus areas of sugar awareness, consumption of juices in general has been hit relatively hard in Western Europe, leading to continued decreasing sales of the company. However another key issue of the company was that the seller (Royal FrieslandCampina) had cut the marketing budgets and reduced the sales teams 5 years ago to save money, which certainly was part of the declining sales. We were convinced that this part of the business was recoverable on the basis of earlier successes of comparable companies that we worked for. Our strong contacts with industry captains who were prepared to tell about their earlier achievements helped convince our client that there was a compelling business case after all. Whilst being engaged on the buy side, we had to make a compelling sell side pitch to the financing banks to get the story line across and make them buy in to it.
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