KKR Asset Management LLC (“KAM”), a leading sub-investment grade manager wholly-owned by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), announced yesterday that it has agreed to provide €220m long term financing to Selecta (“the Company”).
The investment is part of a comprehensive re-financing of the Company’s capital structure, providing flexibility for investments in the machine park and implementation of the ongoing growth strategy.
Selecta is Europe’s largest independent pan-European vending machine operator, with operations in 21 countries, including France, Switzerland, Sweden, UK and Germany.
The company operates c. 135,000 vending machines, employing c. 4,500 people, and serving over 6 million customers daily. Selecta’s business is made up of a combination of private vending, public vending, office coffee services, trade business and technical services.
Mark Brown, a London-based Director on KKR’s Special Situations team, commented: “We look forward to partnering with Selecta and ACP. We believe the company now has the liquidity and a long-term, patient capital structure to pursue several attractive strategic initiatives.
Over the past several years, our Special Situations team has deployed over $3.8 billion of special sits and private credit, supporting companies across Europe. Our investment funds provide long-term capital and offer a solution to companies who seek access to diversify their sources of funding.”
Remo Brunschwiler, CEO of Selecta said: “Since the beginning of 2013, we have managed to implement successful measures leading to improvements to the business and set the course for further growth.
The refinancing helps us to drive the identified growth initiatives such as the further roll-out of Starbucks Corner Cafes and the introduction of newly developed vending machines into the market.”
“The notable interest for our financing demonstrates the confidence the financial markets have in Selecta’s sustainable business model.
We are confident that based on the strategic initiatives and efficiency measures implemented over the past 18 months Selecta is well positioned to further strengthen its leading market position going forward,” said Joerg Spanier, Managing Director at Allianz Capital Partners (ACP).
Source: press release