Acquisition of an Iberian Beverage Distribution Company

Our client’s goal was the creation of an Iberian distribution company specialized in beverage. To achieve that goal client contacted the NBB office in Madrid Conde Orgaz for assistance in this process. NBB’s partner Thierry Bardinet identified and contacted several companies in Spain. Simultaneously NBB Portugal identified a Portuguese company that fit the required profile:

– Distribution company with specialization in Beverage;
– Necessary to have an exclusivity of a recognized brand;
– Revenue between and 1 and 5 million Euros;
– Geographical approach: Iberian

After a long search in Spain for companies with this profile, the Portuguese company turned out to be the best match for the client’s expectations, creating a good impression on the client after having met. Sharing similar impressions on the potential seller, a good business relationship between the parties was therefore established.

The operation mutated along the negotiation process: 1st the operation consisted of the acquisition of a 51% share of the company, and in a 3 years period, the remaining 49% would be purchased based on an EBITDA multiple. In the end, the operation was the acquisition of 51% shares by our client and the mandatory purchase of the remaining shares for a value of 1.000.000 EUR at the end of 2013. The seller will remain in the company as general director for 2 to 3 years.