Unlock Editor’s Digest for free
FT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.
Bridgepoint has appointed advisers to explore options including the sale of its Swedish drinks business Vitamin Well, which the UK-listed private equity group has held for eight years.
The buyout group is working with investment bankers from Jefferies to consider bringing on a new owner or minority investor, the people said.
The company could have a valuation of more than 2 billion euros, with earnings before interest, taxes and depreciation of about 150 million euros, one of the people said.
Vitamin Well had annual sales of about 500 million euros in fiscal 2023, according to people familiar with the company’s performance.
Bridgepoint discussions are in the early stages and no final decisions have been made, and there is no certainty of an agreement, the people cautioned.
The decision to explore the sale comes as the takeover market begins to heat up after 18 months of weakness. Rising interest rates and discrepancies in valuations between buyers and sellers have left private equity groups struggling to sell assets or pausing new deals.
In recent weeks, buyout groups have taken off, including Cinven’s €4.9 billion deal to acquire fund management firm Alter Domus from Permira and Clayton Dubilier & Rice’s $4 billion acquisition of IT firm Presidio from BC Partners. , has entered into a series of multibillion-dollar deals to acquire assets from rivals. .
Bridgepoint sold its elite bike racing series MotoGP to F1 owner Liberty Media this month for €4.2 billion.
Founded in 2006 and headquartered in Stockholm, Vitamin Well is a food and beverage business that manages three major brands: flavored water Vitamin Well, energy drink Nokko and protein bar maker Barebells. The company’s products are sold in 40 markets around the world, and it has offices in Europe, the United States, and Asia.
The market for healthy food and beverage products has grown significantly in recent years as health-conscious consumers seek alternatives to sugary snacks and carbonated drinks.
The sale would end Bridgepoint’s eight-year ownership of the company. Typically, private equity groups aim to hold assets for approximately five years.
FT survey on UK investment
Have you found any UK bargains? Tell us which UK stocks you think are worth including in your ISA and why in our quick survey
Bridgepoint first invested in Vitamin Well in 2016 using funding from Bridgepoint Development Capital, which invests in companies worth up to £200m.
The company invested again in 2021, this time using capital from a fund that typically backs large companies worth up to 1.5 billion euros, according to its website.
A sale would be a boost for Bridgepoint, but performance-related profits fell to £55.3m in 2023 from £64.9m in 2022 and £71m in 2021.
Bridgepoint’s annual report attributes the decline to “lower exit levels for Bridgepoint funds.”
Mr. Jeffries and Mr. Bridgepoint declined to comment.
