3G Capital to buy majority stake in Hunter Douglas

NEW YORK: 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 US$7.1 billion (235.5 billion baht), the companies said in a joint statement.

3G Capital, best known for its investment in the food and drinks sector, will pay €175 (6,578 baht) 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 and a 64% premium to Hunter Douglas’ all-time closing high of €106.40.

“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-chief executive of the Dutch group.

After the deal is concluded, Mr 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’s chief executive, the statement said. Mr Neves is a board member of Kraft Heinz, another 3G Capital investment.

3G made its name in corporate America by putting together big debtfunded 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.