CD&R banks Brakes’s payout

The US buyout firm is set to receive the majority of the proceeds from a £275 million refinancing as the largest shareholder in Brakes, a food supplier.

The Brakes Group, a food supplier owned by US buyout firm Clayton, Dubilier & Rice, is carrying out a £275 million ($523 million; €408 million) refinancing to return capital to shareholders.

CD&R owns approximately 67 percent of Brakes, management and institutional shareholders are believed to own the balance. The buyout was worth £616.4 million for Brakes, including net debt of the Brake Bros Group of £165.2 million.

At the time of the acqusition CD&R said approximately 40 percent, or about £245 million, of the cost of the transaction would be funded from its Fund VI, a $3.5 billion fund.

JPMorgan, Credit Suisse and Deutsche Bank lead arranged the refinancing, with UBS as a co-manager. It is due to close by the end of October. 

Since being acquired by CD&R in August 2002, the firm said Brakes had strengthened its position as a supplier to caterers in the UK and France by broadening its appeal to customers through improved product offerings.

These have included the launch of Prime Meats, a specialist meat division; an extended produce offering through its Pauleys specialist produce business; fish and seafood through M&J Seafood, bakery products and food; as well as the introduction of a new range of catering supplies.

Brakes has a turnover in excess of £1.6 billion.