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Friday, January 28, 2022

3G Capital to buy majority stake in Dutch company Hunter Douglas

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-Private equity firm 3G Capital has agreed to buy a controlling stake in Dutch window coverings group Hunter Douglas NV in a deal based on an enterprise value of about $7.1 billion, the companies said in a joint statement.

3G Capital, best known for its investment in the food and drinks sector, will pay 175 euros per share to buy a 75% stake in the company that makes blinds and window shutters.

The Sonnenberg family, which founded the business over 100 years ago, will retain a 25% stake.

The price is a 73% premium to Hunter Douglas’ closing share price on Thursday of 101.40 euros and a 64% premium to Hunter Douglas’ all-time closing high of 106.40 euros.

“As a private enterprise, Hunter Douglas will have the opportunity to advance and expand our business while preserving the family-led culture and strong relationships with stakeholders which have been core to our success,” said David Sonnenberg, co-CEO of the Dutch group.

After the deal is concluded, Sonnenberg, will take on the role of executive chairman.

João Castro Neves, a senior partner at 3G Capital, is expected to serve as the company CEO, the statement said. Neves is a board member of Kraft Heinz , another 3G Capital investment.

3G made its name in corporate America by putting together big debt-funded M&A deals followed by major cost-cutting.

The management philosophy, developed by Brazilian billionaire financier Jorge Paulo Lemann and Brazilian investment bankers Marcel Herrmann Telles and Carlos Alberto Sicupira, was pioneered at Budweiser brewer Anheuser Busch InBev, the world’s biggest brewer, which they helped to create through a series of big mergers.

3G Capital also brought together fast food chains Burger King and Tim Hortons in 2014 in a $11 billion deal.

($1 = 0.8829 euros)

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