Riverside Acquires #1 Glazing Expert in the Global Confectionary Industry September 15, 2009
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German Confectionery Agent Maker Becomes First Riverside Europe Fund IV Investment
Type: Platform acquisition
Key Stats: 8th Acquisition of 2009; 216th Acquisition Overall
Fund Family: Riverside Europe Fund IV (“REF IV”)
- Develops and produces premium polishing, anti-sticking and release agents, mainly for the confectionery industry throughout the world.
- The company’s products “Capol,” “Capolex,” “Capolan” and “Fix Gum” are recognized throughout the world as market-leading, top-quality products.
- Company’s customers include almost all major international confectionery companies.
The Riverside Company has acquired Kaul GmbH, the leading polishing, anti-sticking and release agent producer for the confectionery, agricultural and pharmaceutical industries, with a global leadership position in the development of glazing and polishing agents for sugar confectionery, e.g. jelly beans, gummy bears, gums and sugar-coated chocolates.
Since its foundation in 1975, Kaul provided a very broad range of products manufactured in its plant in Elmshorn pursuant to the latest regulatory standards such as ISO 9001, IFS, HACCP and BRC. For most products, Kaul also offers kosher and halal as well as TFA, GMO-free and organic product certificates. Along with the standard products, Kaul produces more than 250 tailor-made products to meet special requirements of individual customers. The company’s customer base is extremely stable and diverse and includes almost all major confectionery companies. Kaul services its customers directly and through agents and distributors in over 60 countries globally.
Equity for the deal was provided by Riverside’s most recent European fund, REF IV, and the debt was provided by Unicredit Markets and Investment Banking and Berenberg Bank, Hamburg.
Volker Schmidt, Riverside Partner
“Kaul fits perfectly into our target profile of ‘Hidden Champions,’ well-managed companies with a strong market position and further growth potential. Under the leadership of (CEO) Klaus Dieter Haupt, the company has grown to become a global leader in its niche. We look forward to supporting Mr. Haupt and his management team as they work toward continuous growth.”
Dipl. Ing. Klaus Dieter Haupt, Kaul GmbH CEO
“With Riverside, we have found a partner that operates globally just as we do. I am confident that together we will not only be able to reinforce our leading position but also to explore additional opportunities. ”
Volker Schmidt was the Partner leading the transaction with the support of Dominik Heer (Vice President) and Sven Schulze (Analyst).
Riverside is being advised by KPMG (Financial and Tax Due Diligence), Watson Farley & Williams (Legal Transaction Support), Deloitte (Tax Structuring), Simon Kucher & Partner (Commercial Due Diligence) and ENVIRON (Environmental Due Diligence).
The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside invests in premier SEMM companies valued up to $150 million and partners with strong management teams to build companies through acquisitions and value-added growth. Since its founding in 1988, the firm has invested in 216 transactions with $5.0 billion in enterprise value, and has a current portfolio in North America, Europe and Asia consisting of 67 companies. Riverside offers certainty to close and can complete acquisitions in as little as 45 days, thanks to its more than $3.0 billion of capital under management, over 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. As of March 31, 2009, Riverside’s portfolio had combined annual sales of $3.2 billion, EBITDA of $490 million and more than 14,000 employees. According to Thomson Venture Economics, as of December 31, 2008, six of the firm’s eight mature vintages are top quartile performers on a net IRR basis, and seven are top quartile on a net cash-on-cash basis. Riverside’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks.
Kaul GmbH (www.kaul.de)
Founded in 1975, Kaul is the global leader in the development and manufacturing of premium polishing, anti-sticking and release agents used in the confectionary, agricultural and pharmaceutical industries, with an absolute global leadership position in the development of glazing & polishing agents for sugar confectionary, e.g. jelly beans, gummy bears, gums, etc. The Company differentiates itself from the competition through its trademarked portfolio of over 250 market-leading products (including “Capol,” “Capolex,” “Capolan” and “Fix Gum”). The company’s customer base is extremely stable and diverse and includes almost all major confectionary companies. Kaul services its customers directly as well as through agents and distributors in over 60 countries globally. The Company is headquartered in Elmshorn near Hamburg, Germany.