STOK Embarks on BEWI Carveout to Expand Nordic Reach
Deal News | Nov 14, 2024 | a&m capital europe
A&M Capital Europe-backed STOK has secured a binding agreement to acquire BEWI's trading business, BEWI Food, marking a strategic move to solidify its position as a leading packaging distributor in the Nordics. Operating with commitments totaling €650 million, A&M Capital Europe has been instrumental in guiding STOK's acquisition strategy less than six months after its initial investment. This transaction serves as STOK’s first significant expansion move since A&M Capital Europe's involvement, and represents the private equity firm's latest effort in its ongoing strategy to build and enhance pan-European platform companies via buy-and-build initiatives, making BEWI Food its twenty-fourth transaction across its eight portfolio companies. BEWI Food, recognized for its robust market presence in Norway and Iceland, notably in the fish and seafood packaging sector, is expected to contribute annual sales exceeding €70 million in 2024. The synergy between STOK and BEWI is anticipated to boost the combined entity's annual sales toward an approximate €190 million by the end of the year. Comprehensive adviser support, including legal, tax, accounting, IT, environmental, and operational guidance, will facilitate this integration and growth. This acquisition is part of STOK's broader strategy to leverage its already successful 26-year history of organic and acquisitive growth, aspiring to continue expanding its foothold in the food & beverage, consumer lifestyle, industrial, and healthcare sectors.
Sectors
- Private Equity
- Packaging
- Food & Beverage Distribution
Geography
- Nordics – The acquisition prominently involves companies operating and expanding within Norway, Iceland, Denmark, and Greenland.
- UK – A&M Capital Europe, the private equity firm backing the deal, is headquartered in London, UK.
Industry
- Private Equity – The article revolves around A&M Capital Europe, a private equity firm, which is facilitating the carveout acquisition involving its portfolio company, STOK.
- Packaging – STOK and BEWI Food operate in the packaging industry, focusing specifically on distribution of food packaging materials in the Nordic regions.
- Food & Beverage Distribution – BEWI Food is a distribution business known for its strong market position in the fish and seafood sectors, indicating relevance to the food and beverage distribution industry.
Financials
- 650 million – Commitments under management by A&M Capital Europe.
- 190 million – Expected annual sales for the combined entity at the end of 2024.
- 70 million – Projected sales for BEWI Food in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| STOK | Target company | Company | A Danish-based distributor of protective packaging, STOK is leveraging private equity backing for expansion across the Nordics. |
| BEWI Food | Vendor | Company | A leading distributor of food packaging in Norway and Iceland, known for its strong position in the fish and seafood market. |
| A&M Capital Europe | Private Equity firm | Company | A London-based private equity firm guiding STOK's acquisition strategy with a portfolio of European platform companies. |
| Schjdt | Legal adviser | Company | Provided legal advisory services for the transaction. |
| EY | Tax adviser | Company | Handled tax advisory responsibilities for the transaction. |
| PwC | Accounting adviser | Company | Responsible for accounting advisory services in the transaction. |
| West Monroe | IT adviser | Company | Provided IT advisory expertise for the transaction. |
| ERM | Environmental adviser | Company | Served as the environmental advisor for the deal. |
| Alvarez & Marsal | Operational adviser | Company | Facilitated the operational aspects of the acquisition. |