PE firm KKR acquires majority stake in European vending machine operator Selecta

Private equity firm KKR has acquired a majority stake in European vending machine operator Selecta from Allianz Capital Partners (ACP).

Both KKR and ACP did not reveal the financial terms of the transaction, but media reports suggested that ACP received a low amount for its stake.

ACP bought a little more than 90 per cent stake in Selecta in 2007 for £772 million ($1.19 billion) backed by £690 million of loans.

Founded in 1957 and based in Switzerland, Selecta is a leading European vending and coffee services operator with operations in 21 countries in Europe and a special focus on Switzerland, Sweden and France.

The company operates more than 145,000 vending machines, employs approximately 4,500 people, and serves more than 6 million consumers daily.

Selecta had a turnover of about €714 million for the 12 months ended 30 June 2015).

Apart from selling its own state of the art coffee machines, Selecta has an exclusive partnership with Starbucks and offers a full range of coffee blends such as Selecta's own miofino brand.

KKR has invested in more than 100 companies across industrial sectors in Europe, representing approximately $ 25 billion in invested long-term capital. It also has significant expertise in the European consumer and retail sector in general and in the vending and coffee services industry.

Its current investments in this area include Germany-based WMF, a manufacturer of coffee machines and kitchenware, and Gruppo Argenta, Italy's second largest vending and coffee services company, which received approximately €100 million in long-term financing from KKR Credit in 2014.

Mark Brown, director special situations at KKR Credit in London, said, "We have been working with Selecta since 2014 from a creditor and minority shareholder perspective and are now excited to take our partnership to the next level. With our operational experience and industry know-how as well as our extensive network of senior advisors, we will supportSelecta in actively driving the company's growth strategy whilst focusing on operational and capital efficiency."

Joerg Spanier, managing director at Allianz Capital Partners, said, "Over the past eight years, Selecta has been able to maintain and strengthen its market position despite a difficult overall vending market in recent years. The successful refinancing last year was a major milestone for Selecta to drive the identified growth initiatives. Today the business is well-positioned to maximise its potential and continue its growth strategy."