KKR brews German buyout

The firm has offered to acquire German-coffee machine company WMF for €47 per share, a 24% premium on WMF’s 5 July closing price.

Kohlberg Kravis Roberts has made an offer to acquire Württembergische Metallwarenfabrik Aktiengesellschaft (WMF) through its €6.79 billion third European fund. 

The deal, which is reportedly valued at about $725 million, woud see KKR acquire Capvis Equity Partners' 52 percent stake in the German coffee machine producer for €47 per share, according to a statement. Other shareholders would also be able to tender their shares at €47, a 24 percent premium to WMF’s 5 July closing price.

The deal remains subject to regulatory approval. 

The firm will also acquire Capvis’ 5 percent stake in the company’s preference shares as part of the deal. Other shareholders can sell their preference shares for no less than €31.70.

Capvis, a Swiss private equity firm, acquired its 52 percent stake in WMF in 2006 for €19.05 per share through its €340 million, 2003-vintage second fund. In addition to coffee makers, WMF also produces kitchen and tableware for European markets. 

KKR will work closely with WMF’s management to expand the company’s position in the kitchen and tableware markets, as well as its coffee machines. The company will likely expand internationally to Australia and the US, according to a statement. 

KKR’s portfolio includes a number of German holdings. Last year, KKR acquired telecommunications group Versatel for a reported €240 million. KKR also counts media group ProSiebenSat.1 Media, warehouse equipment company KION Group, music group BMG and car services provider Auto-Teile-Unger Holding company among its investments.