Pitch Best Mid-Market Deal 2019: Gilde Equity Management – Wasco
De beste deal van het jaar is meer dan het hoogste cijfertje in de krant en de kunst van het dealmaken is meer dan het opstellen van een contract. De Awards voor de beste deal zou dus niet alleen op de prijs van de deal gebaseerd moeten zijn, maar vooral op de – toegevoegde – waarde voor een bedrijf en de exit.
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Name of the deal: Gilde Equity Management and management acquire Wasco from Ferguson.
Date announced: 21st of December 2018.
Published value: Between €100 million and €200 million
Buyer: Gilde Equity Management, Wasco management
Target: Wasco
Seller: Ferguson
M&A Database: Bekijk de details van deze deal.
Involved firms and advisors sell side:
M&A:
ING Bank – Robert Ruiter, Franz-Ewald Mitterdorfer, Peter Lambrecht, Michiel Boks.
FDD:
PwC – Cornelis Smaal, Bastiaan Oomens, Jochem Moerkerken, Michiel Semeijn, Carlijn Gouw, Wendy van Luit, David Trentmann.
Tax:
PwC – Maarten Arends, Yvo Oudman, Robert Lantman, Chris van Zwienen, Joey Schellingerhout.
Legal:
Freshfields Bruckhaus Deringer – Alexander Doorman, Brechje Nollen, Winfred Knibbeler, Eelco van der Stok, Nima Lorjé, Bob van Kasteren, Saloua Ouchan.
Involved firms and advisors target:
FDD:
CorporateWise – Valérie Staal, Maaike Janssen, Jelle Menalda van Schouwenburg.
Legal:
Van Doorne – Onno Boerstra, Sjoerd Stokmans, Ellen de Kok.
Involved firms and advisors buy side:
FDD:
EY – Maurice van den Hoek, Lyuda Kravchuk.
Tax:
JSA Tax – Oscar Janssen.
Legal:
Simmons & Simmons – Leo Verhoeff, Jan-Joost van Rijsbergen, Gijs ter Braak, Robbert Jansen.
Pitch
Brief description deal / Deal outline:
Gilde Equity Management, a Dutch private equity firm, and the management of Wasco have acquired Wasco, a wholesaler in heating, sanitary, spare parts, ventilation and air-conditioning, from Ferguson, a distributor of plumbing and heating products. Wasco employs approximately 370 people.
- Wasco is the 2nd largest HVAC wholesaler in The Netherlands, market leader in spare parts- 36 branches across The Netherlands with a national DC in Apeldoorn.
- EUR 310m sales- Profitability is above market average and direct peers.
- Competitive auction with very short timelines run by ING CF.
- Fierce competition from strategic bidders- Wasco was last activity in EU for Ferguson after large disposal program.
- Making that Wasco was a bit neglected in the years leading up to the sale.
- The deal was prudently financed at Rabo and ING based on the Gilde equity story.
Deal rationale:
- Wasco was non core for Ferguson- We saw a next generation added value HVAC wholesaler.
- New age 24/7 service concepts- Wasco is an important link in the large scale energy transition because Wasco has the product portfolio, network and service level tot support large (national) projects. Wasco is important in the climate agreement (Klimaat akkoord).
- Wasco is also important to service large construction projects (Woon akkoord).
- A platform for autonomous and acquisitive growth- Unique combination of large recurring demand in the market with role to play in the upcoming energy transition.
- Run by experienced and committed management, with the CEO being the son of the original founder of the company- Company with an entrepreneurial culture and spirit.
- More potential to build a strong brand.
What is the impact of this deal for the company?
Big. Setting changed 180 degrees.From being non core / neglected to a setting with focus on continuity and (investment for) growth. Expansion already started with several add-ons on the way and investments being made in new warehouses etc.
What is the impact of this deal for the direct stakeholders?
Customers: strategy will be even more focused on service, broadening of product range, enabling and supporting them with the energy transition.
Employees: the growth investment and plans will create new (growth) opportunities for employees, as well as increase total employability.
Suppliers: the strategy will focus more on continuity and building long term partnerships with key suppliers.
All stakeholders will benefit from a setting where continuity and long term growth are key elementsPublic: better buildings, better environment.
What is the impact of this deal on the society?
Wasco will be a driving force and play an active and enabling role in the whole energy transition, towards a cleaner and healthier environment.
Wasco also has an active ESG policy e.g. building a bat cave for endangered bat species in the construction of new warehouse.
Why does this deal deserve a nomination?
- Wasco is a frontrunner in (enabling) the whole energy transition.
- Private equity (Gilde) created a setting wherein the company can grow and prosper again.
- In a highly competitive process with primarily trade buyers Gilde managed to secure the deal.
- By being fast and empting the deadline, underwriting the deal (financing), becoming the preferred growth partner for management and company/works council.
- And as the only PE buyer taking the view not on how Wasco would survive the energy transition but how wasco could shape the energy transition.
- And convincing all (seller, company, financing banks) of our vision in the process, which ING was running at break neck speed.
Comments Panel of Judges
Dat Wasco weer in Nederlandse handen komt door de buy-out specialisten van Gilde werd door de jury met instemming begroet. De prudente financiering en de verzelfstandiging van een bedrijfsonderdeel dat onder een Amerikaanse grootmacht wel erg non-core was werd door heel de jury gezien als een strategisch prudente beslissing. Dat Gilde temidden van een legertje aan concurrenten er met de prijs vandoor ging verdient lof; ook merkte de jury op dat de complexe carve-out relatief vlug is gerealiseerd.
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