A comprehensive financing solution for proFagus' growth
In a negotiation involving over 10 stakeholders, a new financing structure was developed to help proFagus’ expansion.
proFagus, a key brand in the German barbecue charcoal market
“proFagus is the leading German manufacturer of high quality, environmentally friendly barbecue charcoal” says Dr. Markus Geiger, Head of DACH at Kartesia, who worked on the deal with Investment Manager Jean Diercxsens. In addition, proFagus has built up specific know-how in the production of natural chemicals, such as smoke flavours for the food industry. To expand its production capacity in this segment, the company needed additional capital. That’s when Kartesia came into the picture.
Financing package: Kartesia’s holistic approach
“Because Kartesia knows the business well, we were able to provide a comprehensive solution that reconciled the interests of shareholders, remaining and exiting lenders as well as management” Markus explains. With so many parties involved, the deal was a complex one. “Everyone’s interest had to be taken into account to reach consensus.” Kartesia tailored a financing package that will enable proFagus to increase its production capacities and support future development, while one of the initial lenders, who wished to exit the deal for strategic reasons, has been repaid. Alignment of interest between the sponsor, German private equity firm Steadfast Capital, and Kartesia was also a key success factor in the negotiation.
This deal is a great example of the holistic approach advocated by Kartesia. Markus sums it up, saying: “Our solution allows the company to grow, supported by a coherent creditor group and a financing structure adapted to its future needs”.