Dutch drinks bottler Refresco Gerber has announced its intention to float on the Amsterdam stock exchange, potentially dashing the hopes of a number of private equity suitors.
The company, formed in 2013 from the merger of Gerber Emig and Refresco, will list on the Euronext Amsterdam exchange after conducting a review of its options led by JPMorgan.
CEO Hans Roelofs said today: “Over the last few months we have been exploring the alternatives that will enable us to best capture the private label and contract manufacturing growth opportunities we see in our industry.
“Following a comprehensive review of all options, a stock exchange listing providing us full access to equity capital markets has proven to be the most logical step to support us in effectively implementing our strategy going forward.”
The drinks firm, which bottles products for brands including Innocent and Del Monte, had been in advanced talks with a number of private equity companies regarding a buyout. It is thought PE firms including PAI Partners, Pamplona Capital Management and Platinum Equity were putting bids together to value the company at around €1.5bn (£1.1bn).
However, its owners – which include PE firm 3i Group – feel they can achieve a higher valuation on the public markets than the seven times its €208m EBITDA that bidders were offering.
The listing is envisaged to take place in the “near future, subject to market conditions”.
Meanwhile, the group announced its full-year results today, reporting a 28% rise in revenues to €5.96bn and full year adjusted EBITDA was €208.2m compared to €139.7min 2013. The revenue increase was attributed to the effects of the merger, partially offset by lower underlying volumes and slightly declining raw material prices.
Net profit for the fourth quarter of 2014 was €4.8m compared to a net loss of €35.7m in Q4 2013, while net profit for the full year was €38.7m compared to a net loss of €28.9m in 2013.
Roelofs commented: “2014 was a successful year for Refresco Gerber in many respects. We are pleased to report strong operating results and cash flow as well as significant synergies from the merger of Refresco and Gerber Emig”
“The merger expanded our manufacturing footprint and we now provide our customers access to more markets, products, packaging formats and innovations. At the same time the merger has enabled us to further professionalize our organisation and realize scale and efficiency synergies, cost advantages and commercial opportunities – all contributing to strong profits for the year. The merger also resulted in a significant increase in volume and revenue, although in certain markets and categories underlying private label volumes were slightly under pressure throughout the year.”
The merger meant that revenues almost quadrupled in the UK during the year, rising to €363.2m from €92.2m in 2013.
However, late last year the firm announced it was to close its soft drinks bottling plant in Durham and switching its operations to the plant in Somerset previously owned by Gerber Emig. The accounts today revealed it sold the assets of the Durham plant for £1.9m in February.
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