MCH Private Equity and Ardian Co-Investment to Acquire a Majority Stake in Grupo Palacios de Alimentacion from The Carlyle Group

Madrid – The Spanish fund MCH Private Equity, together with Ardian, has acquired a majority stake in the food company Grupo Palacios, replacing The Carlyle Group (CG:NASDAQ) after four years of ownership through Carlyle Europe Partners IV (CEP IV). The management team will remain shareholders and will expand its stake in the company. LGT European Capital, the private debt arm of LGT Capital Partners, will also participate in the equity and mezzanine tranches of the deal, complementing the financing which will be provided by ING, Santander, Natixis and Bankia.

Currently, Grupo Palacios is a significant company in Spain in the products of Spanish provenance and ready-meals sectors, including categories such as chorizo, Spanish omelettes, refrigerated pizzas and frozen desserts. In 2018 the company had a turnover of over 200 million euros and currently employs more than 800 people. The group operates four production plants located across Spain and one in the United States (Florida).

MCH´s investment takes place after a period of growth for Palacios and the consolidation of its various businesses lines in which it operates under the ownership of Carlyle and the management team. In this new phase of investment, MCH will continue supporting the company's ambitious growth and internationalization plans.

According to Jose Maria Muñoz, one of the MCH partners involved in the deal, "We are excited to partner with the management team of Grupo Palacios in this new phase. We hope to contribute, along with our co-investors in the transaction, such as Ardian and Unigrains, to continue strengthening the company's growth, both organically -through innovation- and with acquisitions, in Spain and abroad, where we believe Grupo Palacios has great potential."

As per Carole Barnay, Managing Director within the Ardian Co-Investment team, “We are proud to support MCH and very enthusiastic to contribute Ardian’s experience and network to Palacios’ world-class management team, in its continued successful market consolidation and international expansion strategy.”

Alex Wagenberg, Managing Director, The Carlyle Group, and current chairman of Grupo Palacios commented “We have been extremely fortunate to have partnered with Pedro Domínguez and his team during the past four years. Under their leadership, Palacios has had an impressive, consistent and diversified growth for many years supported by its loyal workforce. I'm convinced that by partnering with the experience and support of MCH and Ardian Palacios will continue to flourish.”

Pedro Domínguez, shareholder and CEO of Grupo Palacios, commented: “We truly appreciate the confidence of MCH and Ardian in Palacios’ project. Our business will continue to grow organically, through constant innovation, specialization and internationalization. In addition, we will keep looking for acquisitions to enrich our range of products, and meet the needs of our clients and consumers. We take this opportunity to thank the Carlyle team for their work during these years of our partnership.”

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About MCH

MCH is a Madrid-based fund specialized in the internationalization of medium-sized companies headquartered in the Iberian Peninsula, with around 1 billion euros under management and operating in the Iberian market since 1998. Among the recent operations carried out by the Fund in the food sector, it can be highlighted Europastry, one of the European leaders in the sector of frozen doughs, Conservas Garavilla, Genuine Coconuts, or Brasmar. In the last year MCH invested in the low-cost gym chain Altafit and Litalsa, the metal packaging lithography company.

About Ardian

Ardian is one of Europe's leading independent investment groups, with $90bn under management, global presence, 590 employees and permanent establishment in 15 countries. It has presence in multiple industrial sectors and has extensive knowledge of the distribution and food sector, with investments in companies such as Grand Frais, Newrest, Frostkrone or Monbake, to mention a few examples.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.

Web: www.carlyle.com
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Podcasts: www.carlyle.com/about-carlyle/market-commentary

Press contacts


Susana Graupera / Idoia Revuelta
sgraupera@atrevia.com/ irevuelta@atrevia.com
Tel.- 91 5640725 /610 424324

The Carlyle Group

Catherine Armstrong
Associate VP, External Affairs
+44 20 7894 1632

The Carlyle Group Press office Spain – Kreab

Oscar Torres / Clara Eguiagaray
E-mail: otorres@kreab.com / ceguiagaray@kreab.com
M. +34 685 929 026
D. +34 91 702 71 70

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