Deal's in the can
Do you anticipate more Euro-Asian
deals in Food and Agribusiness?
RB: We have two or three mandates right
now, for European companies moving
into China or India. F&A is rather local at
this stage of development in many Asian
countries with few businesses operating
on a national level. As markets develop,
our presence on the ground will certainly
make a difference. We do have a very
a third are cross-border, a vast majority of
which are within Europe such as Denmark
to England. I think we are able to say we
are the largest M&A bank in F&A in Europe.
Our added value is biggest on cross-border
deals, but we also value the national deals.
It depends on the stage of development
in the country and sector. Germany, for
instance, is having difficulty attracting
foreign investors, so there we are mostly
doing national M&A deals. Having the
cross-border capacity will be essential
to our future, as markets develop and
companies go from national to regional
to global. We're ready for it, when the
market is ready for it.
strong M&A presence in India, Hong
Kong and Australia which are currently
enjoying a higher level of development
in this sector.
MB: Looking at the Japanese office,
there is something we are working on
at the moment in which a couple of
companies might be interested. Small
shoots, but it's the way forward. If we can
nurture some of these and they are ready
when the market is ripe, then we have
the deal.
In 2004, Fresh Del Monte in the USacquired Del Monte Foods Europe for €275 millionfrom Ciriodel Monte, the canned produce
company based in Italy.The sale involved the purchase of Europe's leading brand of processed fruit and pineappleand its canned
fruit operations in Europe, Africa and the Middle East. It is the largest deal in the Italian food sector this year and one of the largest
in the European food sector. The transaction put back together two pieces of the Del Monte group which had been split upfollowing
the RJR Nabisco US $25 billion leveraged buyout by KKRin the 1980s-the largest of its kind at the time.
The recent sale was triggered by the insolvency of Cirio Del Monte following a bond default in 2003. The sale was one of several that is
being orchestrated during 2003 and 2004 by three commissioners appointed by the Government, including Mario Resca, Chairman of
McDonald's in Italy. An international auction was seen as the most effective way to realize value by the creditors.
Rabobank quickly identified Fresh Del Monte, the US-based, international fresh fruit business as a likely buyer. A team was put together
to approach them and was successful in winning the mandate. This same team - Betty Mills (Relationship Manager for Fresh Del Monte),
Emmanuel Durand (Head of M&A for the Americas) and Armando de Sanna (Head of M&A for Italy) continued to work on the transaction
from an earlyjuncture, before the commissioners had been appointed, until completion toensure that the right level of support was
availableat all times to our cliënt. 'Chinese walls' were, of course, in place between the different parts of the banking group to ensure
no conflicts of interest, as other parts of the bank had an interest in the transaction, since Rabobank was itself a creditor.
The deal was announced in July of 2004 and finally completed in October of that year after many months of negotiation. Mr. Mario Resca
commented after the event, 'I would particularly like to thank Rabobank: they behaved like true bankers, not clerks. Not only did they
maintain their lines (of credit) but they trusted usand tooksome risks.'
The Word 21
