US private equity major Kohlberg Kravis Roberts & Co LP (NYSE:KKR) unveiled on Friday plans to buy German coffee machines and kitchen- and tableware maker WMF Wuerttembergische Metallwarenfabrik AG (ETR:WMF).
KKR, through its Finedining Capital GmbH company, has agreed to acquire the 52% of WMF’s ordinary shares and 5% of its preference shares owned by Capvis Equity Partners AG at EUR47.00 (USD58.20) per WMF ordinary share and will launch a voluntary public takeover offer for the remaining ordinary stock of WMF at the same price.
The offer is a 24% premium WMF ordinary share price as of 5 July, the buyer said.
For the preference shares, KKR said it would pay a cash price equal to the volume weighted average stock exchange price of the WMF preference share during the last three months, but no less than EUR31.70 a piece.
According to Reuters, the takeover proposal is worth at least EUR587m in total.
KKR director Silke Scheiber described WMF as an iconic brand and a sector champion in Germany with substantial growth potential for the future. The buyout group will use its solid international presence and vast experience to support WMF’s global growth, Scheiber said.
Together with WMF’s managers and employees, KKR aims to add to the company’s top standing in the kitchen- and tableware and the automated B2B coffee machines segments, as well as to further expand it internationally, particularly in Asia and the US, it said.
The takeover offer will run for four to six weeks after KKR secures the approval of the German regulator BaFin.
WMF makes and sells kitchen solutions, tableware and coffee machines for households, hotels and the catering sector.
New York-based KKR, with USD62.3bn of assets under management as of 31 March 2012, has offices around the world.