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PAI bids for Wessanen
Posted on Friday, 12 July 2019 09:30
Private equity investor PAI Partners has submitted a formal approach to acquire Netherlands-headquartered food manufacturer Koninklijke Wessanen.

Under the terms of the offer, which has been recommended by the target’s supervisory and executive boards, the buyer will pay EUR 11.36 in cash per item of stock in the company.

The bid represents a 0.2 per cent premium over Euronext-listed Wessanen’s close of EUR 11.34 on 10th July, the last trading day prior to the approach being announced.

Both parties had previously agreed terms on a deal that would have seen PAI Partners and Charles Jobson pay EUR 11.50 per share in Wessanen. The offer price has been lowered due to the payment of a EUR 0.14 dividend per share on 18th April.

The offer period has commenced today and is slated to run until 17:40 on 6th September 2019, with completion expected to follow at some point during Q3 2019.

Gaëlle d'Engremont, a partner at PAI, stated: “We are convinced that our network and track record in the food industry will support Wessanen’s growth objectives and enable the company to advance through to its next phase of development.”

She added that the buyer intends to invest in the company’s brands and give it the necessary resources to play a role in the consolidation of the European organic, health and sustainable foods sector.

Wessannen chief executive Christophe Barnouin noted that having a single owner will put the company in a better position to implement its strategy and provides a good opportunity to realise value for shareholders and staff.

The target claims to be a European leader in the health and sustainable food segment.

With around 1,350 employees, it operates via multiple brands, including Allos, Bonneterra, El Granero and Mrs Crimble’s.

According to Zephyr, the M&A database published by Bureau van Dijk, the largest deal featuring a private equity company buying into a food manufacturer to have been announced during 2019 closed in June.

That transaction was worth USD 1.00 billion and saw MBK Partners HK picking up Godiva Chocolatier’s business and assets in Asia-Pacific.

© Zephus Ltd