Private equity house LDC’s portfolio company, Fever-Tree, a supplier of premium carbonated mixers for spirits, has commenced dealings on AIM following the successful pricing of the company’s IPO.
Fever-Tree’s GBP154.4 million listing on London’s AIM market has resulted in 60.4 per cent of the company being publicly traded and will raise gross proceeds of approximately GBP93.3 million.
LDC, which took a stake in Fever-Tree in March 2013, will retain a 10.4 per cent holding following the IPO, with Directors and senior management of Fever-Tree retaining approximately 25.2 per cent of the issued share capital.
Since its launch in 2005, Fever-Tree has recorded average annual revenue growth of 54 per cent (2009-13).
Already available in over 50 countries worldwide, Fever-Tree has expanded operations outside the UK and 70 per cent of Fever-Tree’s revenues are now derived from exports.
Fever-Tree has also further enhanced its product offerings with the launch of other mixer drinks, including Elderflower Tonic Water and Sicilian lemonade.
In recent years, the business has built strong relationships with global spirits companies such as Bacardi, Diageo, and Pernod Ricard and the company’s products are now served in seven of the world’s top 10 restaurants and many of the leading bars and hotels, such as the Beverly Wilshire, Morocco’s Mamounian and Dubai’s Burj Al Arab.
Fever-Tree’s initial public offering will enable the company to further accelerate its geographic expansion, build on its position as an established premium brand and further capitalise on the multibillion pound global spirit and mixer market.
Edward Hayter, investment director at LDC, says: “Fever Tree is a fabulous business, which has an outstanding growth story and has achieved very considerable success in its relatively short existence. It is already a powerful brand but still has significant untapped international potential in the global spirit and mixer market. The IPO is absolutely the right move for the business, giving Fever Tree an excellent platform from which to accelerate its overseas expansion. We very much look forward to continuing our support for Tim and Charles as they take Fever-Tree on to even greater success.”
Tim Warrillow, CEO of Fever-Tree, says: “Since the successful launch of the brand in 2005, Fever-Tree has achieved rapid growth reflecting the strong brand, clearly differentiated products and first mover advantage in the premium mixer market. We are delighted to have secured a high quality investor base which recognises the company’s exciting growth opportunities and we look forward to building on our market-leading position as a quoted company.”
