The Riverside Company has acquired Kaul GmbH, a Elmshorn, Germany-based maker of polishing, anti-sticking and release agents for the confectionary industry. No financial terms were disclosed.
RIVERSIDE ACQUIRES #1 GLAZING EXPERT TO THE GLOBAL CONFECTIONERY INDUSTRY
Kaul GmbH Becomes First Riverside Europe Fund IV Investment
Type: Key Stats:
Platform acquisition 8th Acquisition of 2009
216th Acquisition Overall
Riverside Europe Fund IV (“REF IV”)
Based in Elmshorn, Germany
• 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 confectionery companies.
The Riverside Company, the largest and oldest global private equity firm investing in companies with enterprise values of under €150 million, has acquired a majority stake in 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 & polishing agents for sugar confectionery, e.g. jelly beans, gummy bears, gums and sugar-coated chocolates.
Since its foundation in 1975, Kaul GmbH has been providing 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 GmbH 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 as well as through agents and distributors in over 60 countries globally.
Equity for the deal will be provided by Riverside’s most recent European Fund REF IV, and the acquisition debt is 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 Mr. Haupt the company has grown to become a global leader in its niche. We look forward to support Mr. Haupt and his management team in the 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. ”
Riverside acquires #1 Glazing Expert to the global confectionary industry.
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 & 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 a global private equity firm focused on acquiring leading small and medium-sized enterprises (with a value of up to €150 million) and partnering with strong management teams to enhance the success of its companies through acquisitions and organic growth.
Since its founding in 1988, the firm has invested in 216 transactions with a total enterprise value of €4.1 billion. The investment portfolio in North America, Europe and Asia includes 67 companies with annual sales totaling $3.3 billion/€2.5 billion, EBITDA of $506 million/€384 million and more than 13,000 employees (June 2009).
Riverside offers the resources to complete acquisitions smoothly – thanks to its capital endowment (just under €2.4 billion), its more than 170 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 its longstanding relationships with partner lenders.
According to Thomson Venture Economics, seven of Riverside’s nine mature funds rank in the top 25% of all funds (as at 31 December 2008). The firm’s investors include the world’s leading pension funds, endowments, funds of funds, insurance companies and banks.
Kaul GmbH (http://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.