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Our proven transaction experience extends across a range of situations, industries, geographies and enterprise values.

Franzen & Company advises Valora on the sale of its pan-European FMCG and cosmetics distribution activities (Trade) to Aurelius

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Franzen & Company acts as sole financial advisor to Swiss listed retail group Valora Holding AG (SIX: VALN) on the disposal of its pan-European FMCG and cosmetics distribution activities (Trade) to Aurelius (ISIN DE000A0JK2A8).

The target
Trade operates as exclusive large-scale retail distribution partner for brand owners providing cost-effective access to over 130 million fast moving consumer goods (FMCG) and branded cosmetics products customers. Trade operates with approx. 660 employees and generated combined revenues of over CHF 600 million in 2014. Trade provides highly specialized services in the areas of key account management, category management, field force services, supply chain management and warehousing to organised and independent retailers. The transaction includes all distinct nine local entities in the seven European countries Switzerland,

Germany, Austria, Denmark, Sweden, Norway and Finland (seven operating in the „Classics“ and two in the „Cosmetics“ business area).

The seller
Valora Holding AG is a Swiss listed retail group headquartered in Muttenz (near Basel, Switzerland). Valora runs three business divisions all operating in high volume European consumer markets, generated a total net revenue of approx. CHF 2 billion and EBITDA of more than CHF 100 million in the last financial year. Valora’s core business is small-outlet retail at high-traffic locations such as kiosks, grocery stores, or newspaper and bookstores. With this transaction Valora successfully completes its focus on its core Retail business.

The buyer
Aurelius is one of the leading European investment groups. From its offices in Munich, London, Stockholm and Madrid, Aurelius acquires participations with development potential. Once under the Aurelius umbrella, acquisitions are given a long-term strategic orientation in order for them to fully develop their potential through operational engagement.

 

Michael Mueller, CEO of Valora Group, commented:
“Franzen & Company’s systematic approach and understanding of the market dynamics, in addition to their cross-border capabilities, made them the stand-out adviser for this transaction. The team was exceptional in supporting us over the course of this complex transaction. We are certain that in Aurelius, we have found a strong partner, as well as a new owner that holds its subsidiaries over the long-term and has relevant experience in this area. Over the next three years, Valora will continue to participate in the performance of the Trade business thanks to the earn-out component. This transaction will enable us to focus our resources exclusively on the sustainable development of Valora and concentrate growth in our core activities: Retail and immediate-consumption goods in heavily-frequented locations.”

Marcel Franzen, Managing Director of Franzen & Company, said:
“We are excited to have been able to find a good home for Trade. As a result of this complex carve-out and corporate disposal Valora management made the last important step in sharpening its strategic focus and capital allocation to its core business with a resolute commitment to creating long-term shareholder value as a result.”

This transaction represents Franzen & Company´s 2nd exclusively advised cross-border transaction since the sale of Franke Group´s Mobile Systems business to Transdigm (NYSE: TDG) announced in July 2014 and confirms Franzen & Company´s leading position in the Swiss mid-market.