Background
- E&A Scheer is a premium rum ingredients provider connecting distilleries across the world with end-customers through its unique sourcing, ageing and blending expertise that has been built over a period of 300 years
- Founded by brothers Evert and Anthonie Scheer five generations ago, E&A Scheer is headquartered in the Netherlands, and serves a diverse group of 500+ customers in over 60 countries worldwide
- Platinum Equity is a global investment firm with six offices, 300+ professionals and operating expertise that spans all seven continents, managing $47BN+ of diversified assets
Process
- DC Advisory was appointed as exclusive financial advisor to Platinum Equity on its acquisition of E&A Scheer
- The selling shareholders ran a competitive auction process to identify a suitable partner to support E&A Scheer’s next phase of growth
- E&A Scheer’s investment case demonstrated resilient organic growth, global diversification and an asset-light business model that combines high operating margins with strong cash flow generation. The fragmented market in which the company operates, provides further opportunity for growth through accretive M&A
- Following a staged bidding process the transaction terms were agreed in late December
- DC Advisory’s Benelux and UK teams assisted Platinum Equity with strategic M&A and debt advice, including negotiations with sellers and lenders, as well as providing sector input
Outcome
- The transaction formally completed on January 10, 2024, after customary closing conditions were fulfilled
- Under the terms of the transaction, Platinum Equity will acquire a majority stake in E&A Scheer with the balance held by company management and key employees
- This transaction illustrates DC Advisory’s client value proposition, providing local proximity, distinctive sector expertise and full-scale transaction advisory capabilities covering both M&A and debt
“It was a real pleasure to work with the DC Advisory team. Their local access, sector expertise and combined M&A and debt advisory capabilities were instrumental in securing a successful outcome. We look forward to working with DC Advisory in the future”
“We’re absolutely delighted to be supporting Platinum Equity on this landmark investment in the global rum ingredients market. Combining our local proximity, sector insights and integral advisory capabilities proved to be of high value-add to Platinum throughout the transaction process”
