Egeria hits hard cap at €500m; sells Advang to Lion

Dutch GP attracts investors to mid-market offering, agrees to sell a frozen snack producer to consumer brands specialist Lion Capital.

Egeria, an independent Dutch mid-market buyout firm, has closed its third fund at its hard cap of €500 million in its first closing. Interest from both existing and new investors was strong and the fund was considerably oversubscribed.

Commitments came from highly regarded Dutch and international institutions and family offices including investors from North America and Europe. Dermot Crean, partner at placement agent Acanthus Advisers, told PEO: “There was plenty of demand. The target had been €400 million. There is still quite a lot of long-term money and where are you going to put it? In the mid-market there is still a bit of scarcity value around good firms with track records.”

Egeria, established in 1997, targets controlling stakes in mid-market companies in the Netherlands or in companies with a Dutch link. It invests in companies with a proven record operating in stable, growing markets.

Egeria’s portfolio companies tend to have enterprise values of between €50 million and €200 million, with strong and stable cash flows. As in the past, Egeria is seeking to partner with strong management teams with which it works closely.

Acanthus Advisers acted as financial adviser and placement agent to Egeria. O'Melveny & Myers and Loyens & Loeff acted as legal and tax advisers to the firm.

Separately, talks between Lion Capital and Egeria have reached an advanced stage in the sale of Advang, a branded producer of frozen snacks and appetisers, to Lion. Its most famous brand is Mora.

Consultations with the works councils in the Netherlands will begin immediately.  The relevant trade unions will also be informed in due course.

Advang, or Ad van Geloven, employs more than 900 people in five factories in the Netherlands and Belgium. In 2007, the company generated net sales of over €170 million.

Lyndon Lea, partner of Lion Capital, said in a statement:  “Consumers want meals and snacks that are convenient without sacrificing quality and the Mora brand has a strong heritage of delivering convenient food products of the highest quality to consumers.”