Pencarrow sells NZ beverage company to Dutch trade buyer

The transaction was announced by Pencarrow last year, with a view that the resulting merger of BrewGroup and JDE New Zealand would establish the country’s largest player in both tea and coffee. Local media has reported the deal to be worth more than NZ$100 million ($72 million). 

According to AVCJ Research, Pencarrow bought the company under the name Bell Tea & Coffee in 2013 for about $26.5 million alongside the New Zealand government’s Accident Compensation Corporation. It was the first investment from the firm’s fourth fund, which had closed six months prior at NZ$124 million.

Founded in 1898, Bell Tea is regarded as a leading brand in New Zealand’s beverage segment. The company changed its name to BrewGroup last year when it acquired Hummingbird Coffee. Pencarrow said the bolt-on contributed to a significant increase in revenue and a doubling of export sales. Other value-add efforts by the GP included an expansion of domestic grocery and out-of-home businesses as well as an increase in the rate of new product development.

Pencarrow claims to have committed more than NZ$300 million across 30 mid-cap New Zealand companies since 1993. Other investments from its fourth fund include outdoor clothing supplier Icebreaker, renewable power provider SolarCity and payment services company Umbrellar. The firm has fully invested the vehicle and raised an annex fund of NZ$80 million, which is now available to deploy.

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• Topics
• Australasia
• Consumer
• Trade sale
• Pencarrow Private Equity
• New Zealand
• Growth capital
• Exit