The Carlyle Group Closes the Acquisition of the Saprogal Group of Animal Nutrition Companies

• Saprogal is the leading animal nutrition group in Iberian distribution market


• The Group has sales in excess of €250 million, employs more than 500 people and operates 11 production facilities in Iberia

Barcelona, Spain -- Global private equity firm The Carlyle Group announced today that it has closed the acquisition of the Saprogal Group an animal nutrition group in Spain and Portugal, from ConAgra Foods, Inc. The financial terms of the agreement are not disclosed. The European Commission approved the transaction on the 25th May 2004.

Saprogal is the largest manufacturer and supplier of animal feed in the Spanish and Portuguese distribution market and is headquartered in La Coruña (Spain). Saprogal´s distribution network counts over 1,000 distributors in Portugal and Spain. The Group had 2003 sales of over €250 million, 11 production plants, and employs more than 500 people.

The management team of Saprogal, headed by Dr. José Antonio Rocha Martins, supports the acquisition and will also invest in the transaction. Mr. Rocha commented, “Carlyle support will be fundamental for the consolidation of Saprogal in the animal nutrition and pet food sector, a market in which the leading companies will continue to grow as the consumer demands increased quality and reliability for the livestock nutrition products. With the entrance of Carlyle, Saprogal will strengthen the growth and quality strategy of our Biona and Formax brands, in animal nutrition, and Triple Crown and Canter in pet food”. The current management team will continue to be responsible for Saprogal´s operations.

Alex Wagenberg, Director of The Carlyle Group for Spain and Portugal, commenting on the acquisition said, “The Saprogal management team have built a company with a very strong market position and a continued and stable profitability over the last 15 years. The Carlyle Group will support the growth strategy of Saprogal, through increased investments and acquisitions, making Saprogal an active player in the sector consolidation”. The acquisition will be financed by a combination of equity and debt.

The transaction underlines Carlyle’s ability to collaborate on a global scale with large corporations on the execution of their strategic plans as well as jointly with local management teams in identifying growth opportunities.

The Carlyle investment will be made from its European buyout fund, Carlyle Europe Partners II, and is the first completed transaction in Spain and Portugal. Other recent transactions for the fund include the acquisition of Avio from Fiat SpA in 2003 for €1.6 billion and Terreal from Saint-Gobain for €400 million.

KPMG Transaction Services advised Carlyle on all due diligence aspects, Cuatrecasas acted as Carlyle´s legal advisor. The Royal Bank of Scotland is underwriting the financing.

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