KKR finances European coffee merger

The firm’s special situations vehicle has provided the financing to facilitate a merger between two Europe-based coffee companies.

The KKR Special Situations Fund has provided financing to coffee services provider Selecta. The financing will be used to support the acquisition of another coffee services provider, Pelican Rouge Group.

One media report said the financing consisted of €375 million worth of leveraged loans, though this could not be immediately verified. 

Spokesmen for KKR and Kirkland & Ellis International, which advised on the transaction, did not return calls seeking further comment by time of publication.

The merger will create a company with €1.3 billion in revenue, according to a joint company announcement made by the coffee-service firms. The resulting firm will also have EBITDA of approximately €200 million.
Selecta has a presence in 15 European countries, while Pelican Rouge operates in eight European markets. 

KKR’s second special situations product was launched in 2015 and raised $3.35 billion by its final close, according to PDI data. The fund exceeded its fundraising target, which was $3 billion. LPs in the fund include retirement systems from Virginia and Maine, according to PDI research. 

Jamie Weinstein, global co-head of special situations at KKR, recently told PDI attaching a “specials sits” label to funds allowed them to take advantage of international opportunities during the entirety of the credit cycle.

The firm has a broad definition of special situations, with Weinstein telling PDI it concerns transactions involving rescue capital or funding for companies to avoid insolvency. In addition to this, the firm considers distressed-for-control deals, secondary market trades of debt instruments and other structured principal investments as deals that could fit its special situations products.