The management team of Euro Cater, a Nordic Foodservice wholesaler, and Intermediate Capital Group (ICG), the specialist asset manager, have formed a partnership to acquire the business from Euro ManaCo (the current investment vehicle of Euro Cater management), Altor and inco Amba.
The transaction marks the conclusion of a partnership between Euro Cater and Altor that commenced in 2006.
Euro Cater was established in 2006 as a partnership between Altor and key employees of the company and has since developed into a wide reaching foodservice supply business, organically and through acquisitions. In 2007 Euro Cater entered Sweden by acquiring Svensk Cater, and in 2011 the company significantly strengthened its position in Eastern Denmark via the acquisition of inco, a Danish Foodservice wholesaler predominantly operating in cash and carry. Today Euro Cater has 16 branches throughout Denmark and is the third largest supplier in Sweden.
Dansk Cater chief executive Steen D Pedersen says: “We are very pleased to be able to enter this agreement with ICG, with the shared goal of continuing the development of Euro Cater’s strong position in the foodservice business and be a trusted partner for our many customers and suppliers. We are pleased that ICG will be part of our future, and at the same time we thank Altor for the exciting journey we have been on together over the last six years. It is a strong signal to all of our colleagues, customers and suppliers that ICG has chosen to invest in Euro Cater and shares our belief that the way forward in the industry is through service, quality and innovation with our customers and suppliers.”
ICG director James Davis says: “We are delighted to be joining Euro Cater and its management team as their new financial partner. At ICG we back strong management teams in high-quality businesses, and Euro Cater is a perfect fit. We are very impressed by the business the management team have built over two and a half decades, centred on high quality, bespoke service to its customers. We are very excited by the prospects for the future of the business and we look forward to working closely with Steen and the team over the next few years to realise its potential.”
Altor Equity Partners partner Stefan Linder says: “During the last six years, Euro Cater has shown organic growth throughout the economic downturn. This has been complemented with several transformational acquisitions, including the entry into Sweden when Svensk Cater was acquired in 2007 and the entry into cash and carry when inco was acquired in 2011. The partnership with management has been very successful, and we have together more than doubled the revenue of Euro Cater, yielding an attractive return to Altor’s investors.”
JP Morgan acted as financial adviser and Bech-Bruun as legal advisor to Euro Cater and Altor. PwC, Kromann- Reumert and McKinsey acted as advisers to ICG.
The transaction is expected to close within the second quarter of 2013.