KKR Asset Management is providing a long term financing package to Selecta. Selecta is a pan-European vending machine operator.
KKR Asset Management LLC (“KAM”), a leading sub-investment grade manager wholly-owned by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), announced today that it has agreed to provide €220m long term financing to Selecta (“the Company”). The investment is part of a comprehensive re-financing of the Company’s capital structure, providing flexibility for investments in the machine park and implementation of the ongoing growth strategy.
“The notable interest for our financing demonstrates the confidence the financial markets have in Selecta’s sustainable business model. We are confident that based on the strategic initiatives and efficiency measures implemented over the past 18 months Selecta is well positioned to further strengthen its leading market position going forward”
Selecta is Europe’s largest independent pan-European vending machine operator, with operations in 21 countries, including France, Switzerland, Sweden, UK and Germany. The company operates c. 135,000 vending machines, employing c. 4,500 people, and serving over 6 million customers daily. Selecta’s business is made up of a combination of private vending, public vending, office coffee services, trade business and technical services.
Mark Brown, a London-based Director on KKR’s Special Situations team, commented: “We look forward to partnering with Selecta and ACP. We believe the company now has the liquidity and a long-term, patient capital structure to pursue several attractive strategic initiatives. Over the past several years, our Special Situations team has deployed over $3.8 billion of special sits and private credit, supporting companies across Europe. Our investment funds provide long-term capital and offer a solution to companies who seek access to diversify their sources of funding.”
Remo Brunschwiler, CEO of Selecta said: “Since the beginning of 2013, we have managed to implement successful measures leading to improvements to the business and set the course for further growth. The refinancing helps us to drive the identified growth initiatives such as the further roll-out of Starbucks Corner Cafes and the introduction of newly developed vending machines into the market.”
“The notable interest for our financing demonstrates the confidence the financial markets have in Selecta’s sustainable business model. We are confident that based on the strategic initiatives and efficiency measures implemented over the past 18 months Selecta is well positioned to further strengthen its leading market position going forward,” said Joerg Spanier, Managing Director at Allianz Capital Partners (ACP).
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Selecta is the undisputed European market leader in vending machines, vending services and vending solutions. Selecta was founded in Switzerland in 1957. Selecta is the largest European vending company operating about 140,000 vending machines in 21 countries, serving some 6 million consumers every day at the workplace and on-the-go with revenues over € 740 million. Selecta employs over 4,500 people in 250 Selecta branches. The company offers food and drinks vending solutions in all business segments – from office to healthcare and education and everything in between. In autumn 2012, Selecta introduced its exclusive and bespoke hot drinks machine called Ferrara, and has installed to-date over 2.700 of these machines across Europe. In summer 2013, Selecta introduced the Starbucks Corner Café concept as a premium self-service drinks point, which Selecta exclusively services in 11 countries across Europe.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
About KKR Asset Management
KAM invests on behalf of its managed funds, clients and accounts across long/short equities and the corporate credit spectrum, including secured credit, bank loans and high yield securities and alternative assets such as mezzanine financing, special situations investing and structured finance. With 80 investment professionals, with a large team based in Europe, KAM’s investment teams are closely aligned with KKR’s wealth of private equity investment and industry resources. KAM has approximately $23.0 billion of assets under management as of March 31, 2014.
About Allianz Capital Partners
Allianz Capital Partners (ACP) is the captive, alternative asset platform of Allianz Group with assets under management of about 9.4 billion euros. ACP’s investment strategy is driven in particular by matching the long-term obligations of the Allianz Group’s life insurance businesses with assets that generate long-term, stable and inflation-protected cash flows provided, for example, by investment opportunities in the infrastructure and renewables sector.
Together with its customers and sales partners, Allianz is one of the strongest financial communities. Around 78 million private and corporate customers rely on Allianz’s knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks.