Our previous Canadian Mergers & Acquisitions roundups can be found here. Our previous global M&A roundups can be found here.

Target: Refresco Group N.V. (ENXTAM:RFRG)

• Industry: Consumer & Retail
• Acquirer: PAI Partners
• Target: Refresco Group N.V.
• Size: €2.2 billion
• Consideration: 100% Cash
• Source of Funds: Cash
• Sell Side Advisors: Not Disclosed
• Buy Side Advisors: Not Disclosed
• Legal Advisors: Not Disclosed
• Expected Close: Not Disclosed

PAI Partners made a new proposal to acquire Refresco Group for an implied Enterprise Value of €2.2 billion on October 3, 2017. The deal includes Cott’s bottling activities, which Refresco agreed to acquire for $1.25 billion in July.

The transaction includes a €1.6 billion consideration to shareholders and €630 million of net assumed debt. PAI Partners will acquire 81.2 million Refresco shares and will pay a consideration of €19.75 per share. The offer values Refresco at an implied EV/EBITDA of 10.1x and an implied P/E multiple of 17.9x.

In April, Refresco rejected PAI’s original offer of €1.4 billion. PAI is looking for investment opportunities to utilize their large cash balance and is interested in privatizing Refresco, which only went public about 2 years ago.

Target: Gazeley Limited

• Industry: Industrials
• Acquirer: Global Logistic Properties Limited (SGX:MC0)
• Target: Gazeley Limited
• Size: €2.4 billion
• Consideration: 100% Cash
• Source of Funds: 58% Equity, 42% Debt
• Sell Side Advisor: Morgan Stanley
• Buy Side Advisors: Not Disclosed
• Legal Advisors: Not Disclosed
• Expected Close: Not Disclosed

Global Logistic Properties (GLP) Limited entered into a definitive agreement to acquire Gazeley for €2.4 billion on October 2, 2017.

The deal will be funded through €1.4 billion of equity financing and €1 billion of long-term debt.

GLP will integrate the Gazeley portfolio into its fund management platform and will retain the existing management team and brand. The deal will provide GLP with direct access to the European logistics market including key markets in the UK, Germany, France, and the Netherlands.

The portfolio includes 1.6 million square meters of assets and a development pipeline of 1.4 million square meters of buildable area. The existing assets have a 98% occupancy rate with a weighted lease expiry of 9 years.

The global logistics industry continues to see increasing demand as online retailers, such as Amazon, move goods from suppliers to consumers.

To better understand our M&A write-ups, please refer to the following:

Mergers & Acquisitions
Cash or Stock Consideration for M&A
Accretion/Dilution Part I: EPS, Earnings Yield & All-Stock Transactions
Accretion/Dilution Part II: Math and Breakeven Premiums
Accretion/Dilution Part III: Using Debt for Acquisitions
Accretion/Dilution Part IV: Synergies & Sources of Funds