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Proa Capital enters the Grupo Vips shareholding structure upon purchasing the 30% in the hands of goldman Sachs

 

Madrid, September 15, 2016.- Today, Grupo Vips announced the entrance of the Spanish fund ProA Capital in its shareholding structure upon acquiring 30% ownership of an entity that has been controlled by Goldman Sachs Merchant Banking Division since 2006. The transaction, which has been communicated to the anti-trust authorities, is pending approval by the CNMC (Spanish Markets and Competition Commission) and will be closed as soon as this authority issues such approval.

The positive evolution of the Group’s main indicators in recent years as a result of the deep Transformation Plan undertaken by the company and the start of a growth and leadership phase amidst an improved economic situation in the country, have made this agreement possible. This transaction will help consolidate and strengthen this new growth phase for its current brands like VIPS, VIPSMART, GINOS, STARBUCKS and FRIDAYS, as well as new brands like WAGAMAMA, with which it recently reached a deal for development in Spain and Portugal. All of the Group’s figures in 2015 were positive for the first time ever since 2008, thereby completing the change in trend which began back in 2013.

The transaction also includes a capital increase in ordinary shares in an amount of 41.5 million euros, which will be subscribed by the current majority shareholders through a conversion of preferential series B shares into ordinary shares and by the new investor which will contribute additional funds in an amount of 12.5 million euros.  The resulting shares after this capital increase will remain at 70% for the majority shareholders and Group founders led by the Arango family with 30% owned by ProA. This capital increase will allow the Group to have more financial resources to accelerate its growth and reform plans and improve its current premises, especially GINOS and VIPS in which the Group already announced it would be investing 25 million euros between 2016 and 2017.

The shareholding change, which comes with the exit of Goldman Sachs Merchant Banking Division after having remained in the Group for ten years, was completed through restricted negotiations between the company, Goldman Sachs and various interested funds.  Altamar Advisory Partners, Garrigues and Uria advised Grupo Vips and Goldman Sachs Merchant Banking Division whereas ProA relied on the advice of Fidentis, Optima, Linklaters and EY.

Plácido Arango, President of Grupo Vips, thanked Goldman Sachs for “the close collaboration and value they have provided over the years when it was necessary to re-invent ourselves in order to overcome the drop in consumption and the evolution among consumers brought by the economic crisis” and stated “his excitement and appreciation for the entry of ProA as a partner in this new growth stage opening up for us, thanking ProA for the trust placed in the Grupo Vips management team and history.”

On the other hand, Fernando Ortiz and Santiago Gómez, ProA shareholders and the people responsible for this transaction, showed their satisfaction at being a part of a company with the prestige of Grupo Vips “which impressed us with its solidity and potential for future growth in addition to the enormous efforts made in recent years and the strength of its corporate culture”.

Moreover, Michele Titi-Cappelli, Managing Director of Goldman Sachs and the person responsible for the investment “thanked the majority shareholders and the Grupo Vips management team for their trust and collaboration over the ten years of their alliance” while wishing them much success with their new shareholders, ProA Capital.

 

About Grupo Vips:

Grupo Vips is one of the leading multi-brand and multi-format groups in the food service and retail sector in Spain. It includes restaurants, cafés and shops. The company manages a total of six well-known chains it either owns or operates under franchising agreements: VIPS (cafeteria - restaurant and shop), VIPSmart, GINOS, The Wok, TGI Fridays and Starbucks Coffee in Spain, Portugal and Andorra.  Wagamama will soon be joining them. Moreover, the group has three unique restaurants, Lucca, Rugantino Casa Tua and Tattaglia, as well as a premium sandwich, salad and take-away product factory, BSF. The company manages a total of 350 locations serving more than 120,000 customers a day. It runs a pioneer and restaurant sector-leading loyalty program, Club VIPS, with more than 1,000,000 members throughout Spain.  The app, which is unique in the market and was launched at the end of April 2015, has already been downloaded more than 450,000 times. Grupo Vips is a private equity company which was founded in 1969. Goldman Sachs Capital Partners acquired 30% of the company in 2006. Grupo Vips employs more than 9,300 people and ended fiscal year 2015 with 377.6 million euros in turnover.

More information at: www.grupovips.com

Discover the Club VIPS app at: www.clubvips.com

 

About ProA Capital:

With more than 600 million euros under its management, ProA Capital is one of the largest venture capital management firms in Spain. The investment in Grupo VIPS will be completed from its second fund, which holds 350 million euros. Among others, ProA Capital participates in Ambuibérica, Saba Infraestructuras, Hospital de Llevant, Ibermática, Rotor Componentes Tecnológicos, Avizor and Suanfarma. In 2015, it sold its shares in Palacios to Carlyle and in EUGIN to the publically listed group headquartered in Abu Dhabi, NMC Health, with which it maintains an alliance for the international expansion of EUGIN.