KKR Asset Management (KKRAM), the private debt arm of alternatives manager KKR, has provided €100 million in capital to Gruppo Argenta as part of a rescue refinancing.
The financing package is a combination of debt and equity, and will be used by the Italian vending machine operator to repay current lenders as well as providing liquidity to fund further growth. The loans repaid are the higher risk junior tranches of the company's debt, according to reports.
Incumbent shareholder Motion Equity Partners, the buyout firm formerly known as Cognetas, will invest €10 million alongside KKRAM as part of the deal. In its previous iteration the firm acquired Gruppo Argenta from rival buyout group Advent International for €645 million in 2008.
KKRAM becomes a minority shareholder in the business as a result of the deal, and gains representation on the company's board.
Mark Brown, director of special situations KKRAM’s London office, said in a statement: “We look forward to partnering with Argenta and the existing bank syndicate. We have been impressed by the efficiency of the company’s operations and believe it now has a long-term, patient capital structure to pursue growth, both organically and through selective acquisitions.”
He added: “Over the past few years, we have invested over €2 billion in Europe, supporting companies in Italy, Spain, France, the Netherlands, UK and Sweden. Our investment funds are built on long-term capital and offer a solution to companies whose access to traditional bank lending is under pressure and to banks who seek to decrease their exposure.”