Pitch Best Small Cap 2019: Avedon Capital Partners – Brand Masters

De genomineerde deals maken dit jaar kans op de M&A Award voor Best Small Cap Deal 2019. Deze pitch is ingezonden door Peter Zevenbergen van Van Oers Corporate Finance

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Date deal closed
10 juli 2019

Published value
Undisclosed, range up to 50 million (€)

Avedon Capital Partners

Brand Masters B.V. and subsidiaries

Shareholders of Brand Masters

Involved firms and advisors sell side
EY (financial due diligence), EY-Parthenon (commercial due diligence), Allen & Overy (legal due diligence & transaction documentation), Atlas (tax due diligence), BCM (HR due diligence)  & Groenewout (operational due diligence).

Involved firms and advisors target
Van Oers Corporate Finance (M&A advisory)

Involved firms and advisors buy side
Van Oers Accountancy & Advies (financial & tax advisory) & Van Benthem & Keulen (legal advisory), Nielen Schuman B.V. (debt advisory)

Brief description deal / Deal outline
Avedon Capital Partners acquired the majority of the shares in Brand Masters B.V. and its subsidiaries. All direct shareholders remain part of the management team during the further expansion and realization of the company’s growth ambition. The team will be strengthened to realize the growth plans and further expand the company internationally. Avedon Capital Partners will support the company strategically in its future ambitions and development.

Deal rationale
Brand Masters was founded in 2012 and operates as a full service distribution and logistics company of FMCG products within the non-food retail sector. In the following seven years the founders realized an accelerated growth of the company to approx. 85 million (€) turnover and 75 employees. The shareholders of Brand Masters were keen on accelerating the further growth of the company and enabling the company to expand internationally. The shareholders indicated many opportunities in the market, but were unable to seize all of them. The accelerated growth pushed the company to its limits in terms of personnel, internal processes and supply chain management. Therefore, the shareholders decided that the company could benefit from the support of a private equity investor with extensive knowledge and experience in strategic (re)positioning, revenue growth, human capital and operational improvements. After a brief search, Van Oers Corporate Finance introduced the shareholders to Avedon Capital Partners.

What is the impact of this deal for the company?
Avedon Capital Partners will support the Oosterhout-based company Brand Masters in the implementation of an ambitious international growth plan. Together with its new partner Avedon, Brand Masters wants to accelerate organic growth in Western Europe in the coming years, in combination with investments in the organization and the supply chain. Possible takeovers are also actively being pursued. This deal brings the professionalization and development opportunities the company was looking for. Avedon Capital Partners will also open doors to new opportunities, which would otherwise have been unreachable or would have been significantly more difficult to accomplish. Examples of these goals and ambitions are international expansion, next-level management (HR support) and enhanced business intelligence, all of which have a direct and positive impact on the company.

What is the impact of this deal for the direct stakeholders?
As a commercial and logistics service provider, the company supports a range of well-known and less well-known suppliers to the non-food retail channel. This deal will enable the company to further accelerate its growth and development plans. Brand Masters will be able to further develop its connections with (new) manufacturers. This will enable the company to service more retailers and surprise them with fun new ideas, products and brands. Resulting in a company that is more attractive for manufacturers, retailers and customers alike.   The internal organization of Brand Masters benefits from the deal in terms of stability and professionalization. Increased investments in the organization will enable employees to following additional training programs, grow in their positions and have an extended career within the company. Lastly, the company is a beautiful enhancement to the portfolio of Avedon Capital Partners.

What is the impact of this deal on the society?
Brand Masters presents tempting (food) products in atypical places in the non-food retail channel. These are places where producers of these goods normally have no network and expertise. The retailer often has no affinity with these products. For both, it is not their core business, but they can easily generate extra revenue and margin with it. Brand Masters not only offers manufacturers an extensive network of non-food retailers, it also helps them to present their products successfully. With the support of Avedon Capital Partners, Brand Masters will be able to connect numerous, additional non-food retailers across Europe with (large) manufacturers and their products. It will allow for additional margin and growth opportunities for retailers and manufacturers across Europe.

Why does this deal deserve a nomination?
Brand Masters started from day one with the mission and drive to be the best partner as an FMCG supplier for the non-food retail channel. The company was founded only 7 years ago and grew to 75 employees and a turnover of 85 million (€) in 2019. With the investment and knowledge of Avedon Capital Partners, Brand Masters – as an entrepreneurial and learning organization – can accelerate its growth ambition and underline its mission in the coming years. Both parties involved fully enhance each other’s strengths. Moreover, the deal could be described as an intensive but harmonious collaboration between all parties involved. All of which were determined in making this deal a success.

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