Altor has sold
Altor Equity Partners has agreed to sell Nordic food service business Euro Cater to Intermediate Capital Group (ICG) and a group of the company’s reinvesting employees, according to a statement.
Financial details of the transaction were undisclosed, but a source close to the matter said the deal value was €200 million. The acquisition, which needs to be approved by competition authorities, is expected to close within the second quarter of this year.
Altor invested in Euro Cater more than six years ago, using its Altor Fund II, a €1.15 billion 2006 vintage. The firm has so far exited four investments from this fund, according to a spokesperson.
During Altor’s ownership, Euro Cater has grown its revenue to DKK 7.2 billion (€970 million, $1.3 billion) from DKK 2.7 billion (€360 million, $470 million). Euro Cater, which has approximately 1,750 employees and is based in the Danish city Aalborg, also increased its EBITDA during the period to DKK 500 million from DKK 200 million, due to organic growth and strategic acquisitions.
“During the last six years, Euro Cater has shown organic growth throughout the economic downturn,” Stefan Linder, a partner at Altor, said in the statement. “The partnership with management has been very successful and we have together more than doubled the revenue, yielding an attractive return to Altor’s investors,” he said.
The divestment comes as Altor is currently in the market raising Altor Fund IV, according to public records from the Texas County & District Retirement System (TCDRS).
Altor declined to comment on fundraising.
ICG, a UK-listed investment manager which mainly invests in mezzanine but has the flexibility to invest in all levels of the capital structure, used its ICG Europe Fund V for the transaction, according to a source close to the matter. In January, ICG said it had closed Europe V on the hard-cap of €2.5 billion three months earlier than expected. A month later, the fund was approximately 25 percent deployed, PEI reported at the time.
ICG declined to comment beyond the statement.