Park Square Capital has led a mezzanine investment in the proposed capital structure of Douglas Holding, a Frankfurst-listed retailer which is the subject of a voluntary public tender offer from Advent International.
Park Square, which sourced and led the mezzanine investment, was supported by Partners Group. Partners is an LP in Park Square’s latest mezzanine fund. Both firms released separate statements confirming their involvement in the Douglas deal.
Advent confirmed it had made a bid in a statement last week, but has not released details of the financing structure. Partners and Park Square declined to comment on the size of the mezzanine tranche. Advent’s offer of €38 per share equates to a purchase price of €1.5 billion, and represents a premium of 42 percent to the company’s four-week volume-weighted average share price prior to rumours of the deal emerging on January 11. Douglas’ founding shareholders, the Kreke family, will retain a 20 percent stake in the business once the deal completes.
Park Square will make the mezzanine investment from its Park Square Capital Partners II fund, a €850 million vehicle launched in 2008.
Robin Doumar, managing partner of Park Square, said: “This transaction provides a compelling opportunity to invest in the buyout of some of Germany's best known brands with a nationwide and international network. With its experienced management team the Douglas group is well positioned to further continue its success story in partnership with Advent International. We are delighted to provide a mezzanine solution to this large and complex transaction.”
René Biner, a partner and head of private finance at Partners Group, said in a separate statement: “Driven by a strong management team and its market leadership in Germany, Douglas’ German core business showed strong resilience during the downturn. We have known Advent International for many years, have worked with them on several occasions and have high respect for their proven expertise in the retail segment.”