- Based in Zaragoza, Spain, and with offices in Mexico and the United States, Araven is a leading firm in the design, manufacture and marketing of products for the foodservice and commercial equipment sector.
- The company ended the 2016 financial year ahead of target, with a sales turnover of 22.3 million euros, 72% from foreign markets, as Araven exports to 70 countries on five continents
- Oquendo is also taking part in the operation with a provision of additional capital and funding
- Once again, GED focuses on a regional industrial enterprise, leader in its sector and with an outstanding international outlook.
GED, a private equity group operating in the middle market segment, has successfully carried out the second investment of its new Private Equity Fund (GED V Spain FCR) by acquiring a 90% stake in Araven S.L. As well as GED, Oquendo has also taken a part in the operation with a minority stake in the share capital and providing additional resources in the form of a mezzanine debt.
The sellers are Ibercaja (which was the majority shareholder of the Aragonese company), Capital Innovation and Growth, and A Capital Business Assets (regional investment companies), all of whom acquired Araven SL in 2006. The transaction comes after the investment goals in terms of both profitability and fulfilment of the company’s strategic plan, based on internationalisation and the launch of new products, have been achieved.
With this new investment, GED strengthens its commitment to investing in industrial and regional companies (the first investment by the GED V España FCR fund came in June 2016 in Discefa, the largest group specializing in the processing and distribution of high-quality frozen octopus of Galician origin). The investor base in GED V España FCR fund includes renowned entities such as SEPIDES and ENISA, as well as other Spanish institutions and prominent industry-based families.
The operation has been overseen by the professional services firm KPMG and the law firms Gómez-Acebo y Pombo and King & Wood Mallesons.
Araven growth and international development
Araven S.L. is headquartered in Zaragoza, Spain, and is a leader in the design, manufacture and marketing of products for the foodservice and commercial equipment sector. Internationalisation and innovation are its two main features.
The company, founded in 1976, caters to the needs of foodservice professionals around the world. Araven has become a leading company in the food preservation and handling sector in Europe, with a range of more than 150 fully-differentiated products for equipping food storage rooms and kitchens in all types of catering establishments.
In addition, the company and its products are present in the major retail chains. The company launched its first shopping basket in 1987 and consolidated its leadership with the Shop & Roll line, which started in 2005 with the first basket with a telescopic handle and wheels, subsequently patented and marketed worldwide. Two years ago, it surprised the industry again with the innovative Loop shopping cart.
Araven closed the 2016 financial year in excess of its targets, with a turnover of 22.3 million euros. At present, 72% of its revenues are generated outside Spain (compared to 45% in 2007). It exports its production to 70 countries on five continents.
Company sources have expressed their satisfaction at the agreement reached with GED. “The company’s strategic plans and projects will be strengthened with this operation, which provides continuity and stability and ensures the significant investments Araven wants to undertake in the future”. Likewise, Araven emphasizes that the agreement ensures continuity for the current workforce - comprising 58 employees at this time - and for the company’s “Aragonese roots”.
Enrique Centelles Satrustegui, managing partner of GED V Spain FCR who led the operation, said: “Araven S.L. is fully consistent with the investment parameters of the new GED V Spain FCR fund: medium-sized (“lower mid-market”) industrial companies with a high potential for growth, leaders in their business sector and with a significant international component. Our objective is to support the development and expansion of a company that has an excellent management team with excellent medium and long term prospects based on a clearly defined business strategy and a top-quality, clearly differentiated product.”
The entity expects to make between 8 and 10 investments in all with this vehicle. The type of operations it intends to perform will be “buy-outs” and capital expansion. With this fund, GED now manages a portfolio of assets of around 700 million Euros, which consolidates it as one of the leading managers in the Spanish lower mid-market segment.
About GED (www.gedcapital.com)
GED is an independent fund manager incorporated in 1996. It currently manages some €700 million through different Private Equity, Infrastructure and Real Estate vehicles in the Iberian Peninsula and South Eastern Europe and has a portfolio of 36 subsidiaries.
GED has a universe of more than 50 national and foreign investors, mainly pension funds, insurance companies, family offices and financial institutions.
About Oquendo (www.oquendocapital.com)
Oquendo has been a pioneer in offering alternative funding to Spanish medium-sized companies using mezzanine debt, participatory loans and preferential capital in the context of corporate transactions and expansion plans since 2007. To date, Oquendo has invested around €250m in 21 companies.