Merger Bakkerij Fuite and Bakkerij de Paauw
August 27, 2020
Yuno Advisors advised the shareholders of both Bakkerij Fuite and Bakkerij de Paauw on the merger of both bakeries into one joint company, Bakster B.V. (“Bakster”). In order to facilitate this transaction a new bank financing has been realized with ING Bank, in addition to the equity contribution of the shareholders.
Bakkerij Fuite – founded in 1928 – is a family business that started as a small bakery in IJsselmuiden. Since 2014, Fuite is located in Apeldoorn where the third generation is in charge of the company, which currently employs approximately 70 employees. Fuite mainly bakes daily fresh bread with very flexible lines that process 10,000 tons of flour annually into a wide range of bread products. In addition to its close relationship with retail chain Boni and online retailer Picnic, Fuite distinguishes itself by realizing approximately 30% of its turnover in export markets such as Italy, Germany and Spain.
Bakkerij de Paauw – founded in 1973 – is an industrial bakery that started as a small family run company in Hoornaar. In 1991 De Paauw moved to its current location in Hardinxveld-Giessendam. The location offered space for modernization, a growing product range and expansion of its staff and customer base. Today, De Paauw is one of the larger bakeries in the Netherlands with modern equipment and a staff of over 100 employees. De Paauw has one of the Netherlands’ most efficient production lines in large bread, enabling it to supply 150 locations of a leading national retail chain, whereby De Paauw delivers on-site with its own transportation.
The new Bakster combination immediately ranks among the top-5 largest industrial bakeries in the Netherlands and offers employment to more than 170 employees. Both production locations – Apeldoorn and Hardinxveld-Giessendam – will continue to produce, given the complementarity nature of the locations.
Yuno Advisors assisted the shareholders of both bakeries throughout the entire process – from start to finish. Our advice related to all aspects of the M&A and financing process, including the valuation and structuring of the transaction, preparation of bank documentation (including information memorandum), financial modeling and a combination analysis, as well as negotiating the financing facilities with the banks in a challenging financing climate due to Corona.