RCD advises Farga Group on the acquisition of ice cream company Kalise La Menorquina
The company received a capital injection to undertake the acquisition of the ice cream company for 40 million euros. With the acquisition, the group’s global business will be valued at more than 140 million euros and will obtain the Kalise Menorquina business on the Iberian Peninsula and in the Balearic Islands. The transaction included simultaneous smaller investment transactions, the sale of real estate, debt refinancing, and underwriting in a sale and lease back transaction of machinery, for a total combined value of approximately €200 million
Farga Group has completed one of the most important transactions in recent years in the food sector in Spain, buying the ice cream company Kalise La Menorquina. The Corporate & M&A practice area of RCD – Rousaud Costas Duran advised the group on the acquisition, the amount of which is in the range of €80 million. The transaction entailed six simultaneous sub-transactions that amount to €200 million. The counsel RCD provided for these sub-transactions included advice on a €40 million investment in Farga Group made by a venture capital firm; the sale of real estate assets set at €27 million; debt refinancing and underwriting new debts with financial institutions for approximately €45 million; the refinancing and novation of other financial transactions with Altex Group and with the public institute Avançsa for a total amount of €16 million; underwriting in the sale and lease back transaction of industrial machinery for €12 million.
With this purchase, Farga Group acquires the business operation of Kalise La Menorquina in the Iberian Peninsula and Balearic Islands, the company being one of the main ice cream producers in Spain with a market share of 20%. Likewise, the transaction will give the group control over Kalise La Menorquina’s industrial facilities, distribution network and branches, the largest ice cream sales network in Spain. The purchase will increase the global business of Farga Group by more than €140 million and will serve to improve its international expansion, where it already operates with more than 60 stores (owned by the group and franchised). Farga Group owns the Farga coffee shops and the Farggi ice cream brand.