News 2003
Advent International buys Aviagen from BC Partners
Advent International, the global private equity investor, has acquired specialist animal life sciences company, Aviagen Group Limited, from funds advised by BC Partners in a £255 million leveraged buyout.
Aviagen is the world's leading poultry life sciences company, developing pedigree lines for the production of broiler chickens and turkeys principally under the Ross, Arbor Acres, L.I.R. and Nicholas Turkey brand names. The company is based near Edinburgh, UK and in Huntsville, Alabama, USA with a number of wholly owned operations across the UK and USA and joint ventures in Western and Central Europe, Latin America, South Africa and Asia. Aviagen employs 1,500 people with a distribution network serving 250 customers in 85 countries and generated turnover of £165 million in 2002.
Through the application of novel techniques and new technologies, Aviagen has built a reputation for industry leading standards in its breeding stock products in terms of health, hygiene, animal husbandry and continuous progress in the development of commercial traits. Some 10% of turnover is invested annually in research and development run by a team comprising 50 geneticists, veterinarians, biotechnologists and microbiologists.
With Advent International’s backing, Aviagen aims to build on its market leadership position through organic growth and acquisitions. The company is also exploring options to broaden its product portfolio into technologies related to its core business.
Stefano Quadrio Curzio, Partner at BC Partners, commented “BC Partners built up Aviagen using expertise derived from the 1994 buyout of Nutreco for $550 million, first acquiring Ross Breeders for £110 million and combining it with Arbor Acres, acquired for £67 million, thereby creating a market leading business with a 47% market share. We have been very pleased with Aviagen’s performance and wish the Company and all its employees continued success in the future.”
Commenting on the acquisition, Humphrey Battcock, who leads Advent International’s European healthcare and life sciences team, said: “Aviagen’s management team has created a world class company with an excellent reputation for the quality of its breeding stock, and for the standards of its service. We look forward to working closely with the team in implementing their plans for the next phase of growth, tapping Advent’s own networks in the company’s existing and targeted markets, and in their ultimate aim to take the company public.”
Advent International has, over the past sixteen years, invested in over 80 healthcare and life sciences companies, half of which have completed IPOs on major international stock exchanges.
Ian Panton, Aviagen’s CEO, said: “Aviagen’s success has been achieved through a commitment to the highest standards of professionalism and service which is delivered to the market, either directly, or through our distributor partners. We are excited by the opportunities presented by this change of ownership. I am confident that we will further build our business and make a number of acquisitions, some of which are already identified.”
Advisers on the transaction for Advent International were Deloitte & Touche Corporate Finance and Morgan Stanley (corporate finance), Deloitte & Touche (accounting due diligence) and Lovells (legal). Debt is being provided by RBS. BC Partners was advised by JP Morgan (corporate finance), KPMG (accounting) and Dickson Minto (legal).
BC Partners
BC Partners is a leading pan-European private equity firm, operating through integrated teams based in London, Paris, Milan, Hamburg and Geneva. Over 17 years, the firm has developed a long track record of successfully acquiring and developing European businesses in partnership with management, investing in 52 acquisitions with a total value of €25 billion. The BC European Capital VII funds have total commitments of €4.3bn, one of the largest buy-out funds raised in Europe to date. The firm is independent and unaffiliated with any investment bank.