Mon. Jan 24th, 2022

3G Capital acquired a majority stake in Hunter Douglas, the Dutch manufacturer of window coverings and architectural products, at a valuation of $ 7.1 billion, in the first major transaction for the transaction-hungry global private investment firm since 2015.

For the New York-based firm, which primarily manages the money of its Brazilian founding partners and their high-net-worth friends, including Colombia’s Santo Domingo family and Swiss tennis champion Roger Federer, the deal puts an end to a long search to a new transaction platform.

The transaction represents the entry into a relatively new sector for 3G Capital, which is best known for transactions in the food and beverage and fast food sectors. His last major deal goes back to 2015 when he combined Kraft and Heinz.

Hunter Douglas, a Rotterdam-based publicly listed company, has been controlled by the Sonnenberg family for more than 100 years, growing from a machine tool distribution and manufacturing company in Düsseldorf to a diversified group with $ 3.5 billion in revenue. .

Under the terms of the deal, 3G Capital would own 75 percent of Hunter Douglas, while the Sonnenberg family would retain a 25 percent stake in the company they founded in 1919. David Sonnenberg, the current co-CEO of the company, will remain as executive chairman of the board.

João Castro-Neves, a senior partner at 3G and veteran manager at many of the companies owned by the investment group, will take over as the new CEO of Hunter Douglas once the deal is finalized. Castro-Neves is a board member of 3G-controlled Kraft Heinz and Restaurant Brands International.

3G Capital, which has been seeking an agreement since it was unable to $ 143 billion acquisition of Unilever in 2017, put on about $ 10 billion of deployable funds to launch a new transaction platform. Last year, he asked his investors to hold on to their money longer, as the pandemic and sky-high valuations made it harder to find a suitable target.

The decision to acquire Hunter Douglas was partly led by Daniel Schwartz, who returned to 3G Capital in 2019 as co-managing partner of the firm with Alex Behring.

Schwartz was responsible for turning Burger King around and later growing the Restaurant Brands International container group, which also includes coffee chain Tim Hortons and fast food chain Popeyes.

“I’m personally very excited to work with Joao, Daniel and the partners at 3G Capital,” Sonnenberg said. “They have an extensive mindset and a similar operating style to ours, hands-on, open-minded, informal and highly entrepreneurial. As we believe, they are in ‘business people’ and in building an ownership culture.”

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