Eurasian Consulting successfully assisted Kingenta Ecological Engineering Group Co. in divesting the business segment of Compo Comsumer Business as the exclusive seller-side advisor.
The project started in 2019 and took two years to complete the signing of the sale agreement due to the impact of the Covid-19 epidemic. As a leading institution in cross-border transactions between China and Europe, Eurasian Consulting gave full play to its experience and channel advantages in the process of this project, approached and negotiated with a number of European and American strategic and financial investors, and was responsible for the planning and management of the entire sale process.
On June 1, 2021, Compo Investco GmbH (Compo Investco), a subsidiary of Kingenta, and Duke Street LLP entered into a Share Purchase Agreement in respect of Compo Consumer Business, pursuant to which Compo Investco intends to dispose of Compo Consumer Business as a whole at an equity price of EUR 152 million. In addition to the total purchase consideration, the settlement amount includes accounts receivable and payable net of each other. The total transaction amount is expected to be approximately EUR 230 million at closing.
Compo Consumer, the Target Company of this transaction, founded in 1956 and headquartered in Münster, Germany, is a globally renowned fertiliser company with a history of 60 years, and is also recognised as Europe's highest-end supplier of horticultural fertilisers and plant protection products, with a market share ranking first in Europe, and a team of 600 international employees, with products radiating to more than 100 countries around the world, making its name known to the world's fertiliser industry. The company's range of high-quality potting soil, plant care, lawn and garden fertilisers, lawn seeds and plant protection products for indoor and outdoor gardening is a household name in Europe, with 15,000 different types of products and 2020 revenues of more than EUR 300 million.
The buyer, Duke Street LLP, is a UK-based private equity firm focused on investing in European mid-sized companies. Since 1994 Duke Street has invested in over 50 companies through five funds totalling over EUR 2.5 billion and currently has over EUR 600 million in assets under management.
The sale of Compo Consumer Business will be another benchmark case for Eurasian Consulting, following a series of successful sales of European targets.
