CHAM, Switzerland & DORDRECHT, Netherlands – Selecta Group B.V. (“Selecta”), a leading European vending and coffee services provider, and Pelican Rouge Group B.V. (“Pelican Rouge”), a long established coffee services and vending company, today announced that they have signed an agreement to combine their operating businesses.
Through the acquisition of Pelican Rouge, Selecta will create a leading vending operator and coffee services provider for the workplace, on-the-go as well as hotels, restaurants and cafes (“HoReCa”) across Europe, with presence in 15 countries1.
Creating a larger and stronger business will put the combined company in a better position to serve its existing clients with a more diversified product offering and to pro-actively respond to changing industry dynamics.
The combined company will benefit from shared best practices and know-how across a broader range of segments. This will enable further operational improvements and investments in innovation as well as an accelerated roll-out of new technologies, resulting in an enhanced consumer experience.
By increasing the density of its operations and implementing more cost-effective sourcing and procurement, Selecta expects to deliver improved profitability going forward and an immediately deleveraged credit-profile on a pro-forma basis.
It is further expected that the combined business will benefit from revenue growth potential driven by comprehensive product portfolio in all countries, as well as stronger service capabilities and sales force.
The combined company will have pro forma revenues of over EUR 1.3 billion and pro forma EBITDA in excess of EUR 200 million.
David Flochel, CEO of Selecta, said: “We are delighted to announce the combination of the Pelican Rouge Group and the Selecta Group.
This marks the start of an exciting new chapter for our business and significant joint opportunities as a leading European operator.
This partnership will provide a unique platform to better serve our customers, in line with our strategic focus on geographical reach, operational excellence, growth and innovation.”
In a joint statement by Dr. Nedim Cen, and Patrick Raming respectively Chairman and delegated Supervisory director of Pelican Rouge: “In July 2016, we announced a strategic review of the business.
In conjunction with our advisors we considered a number of different options and we are pleased to announce a transaction today which offers the best deal for all our stakeholders, including employees, clients and suppliers.
As a combined group, we believe the company will be strongly placed to cement its position as a leading operator in the sector in Europe.”
Selecta is a leader in the European vending and coffee services market and geographically diversified across Europe with operations in 15 countries. The company operates more than c.132,000 vending machines and serves more than 6 million consumers daily.
Pelican Rouge, active in eight countries across Europe with more than 150,000 customers around the world, enjoys a leading position across its core vending markets and coffee services markets. Pelican Rouge also has strong roasting expertise and capabilities.
The transaction is subject to customary closing conditions, including regulatory and other approvals. Closing is expected to take place by the end of Q2 2017.
1 Adjusted for Selecta’s disposal of Baltic countries (transaction expected to be completed in March 2017).