365 Capital
Raising financing for the acquisition of Hendi
- In August 2023, Avaxa was engaged by 365 Capital to assist in raising the acquisition financing of Hendi
- Hendi, founded in 1934, is a European distributor of non-food catering supplies and kitchen equipment for the professional kitchen. Hendi has a wide range of ~4,500 mostly in-house designed products across ~20 different product groups (ranging from small kitchen accessories to large electrical appliances) and sells its products under its own brand. Hendi sells its products through an extensive network of distributors and renowned wholesalers to professionals in more than 60 countries
- Hendi generated >€150m revenue in 2023 and serves its customers with ~400 employees from offices in eight countries (Netherlands, Poland, Austria, Italy, Romania, Spain, Greece and Hong Kong) and distribution centers in six countries (Netherlands, Poland, Austria, Romania, Spain and Greece). The majority of its sales are being generated in the Netherlands and Poland
- Avaxa ran a so-called ‘dual track’ financing process for 365 Capital in which both traditional international (bank) lenders, Asset Backed lenders as well as credit funds were approached. For potential financiers, Avaxa prepared an information package including bank presentation, financial base case model, Request for Proposal and Head of Terms. Avaxa also supported Hendi and 365 Capital in preparing management meetings with lenders
- Key in structuring the financing was to raise sufficient working capital financing in the relevant jurisdictions due to the relatively high inventory levels Hendi maintains and which are expected to further increase given the envisaged European growth of Hendi under 365 Capital’s co-ownership
- The financing package consists of Term Loans, an ABF and a RCF. Both the ABF and RCF are used to fund the significant working capital requirements of Hendi and have been structured based on advancing inventory and receivables, thus maximally leveraging the underlying asset base of Hendi
- The transaction closed in March 2024 through a EUR 50 mln. Club Deal of two banks, ING and Polish bank PKF, based on LMA-documentation
- For more information, please refer to the press release of 365 Capital: https://www.365capital.com/news/hendi-announces-partnership-with-365-capital-to-accelerate-european-growth-in-the-coming-years
