UK: Fever-Tree sells 49% stake to LDC private equity
Fever-Tree is looking to expand with investment from LDC
The founders of Fever-Tree have sold a 49% stake in the company to private equity group Lloyds Development Capital (LDC).
The London-based tonic water producer, founded in 2005, has confirmed to just-drinks that it divested the stake in a transaction that, according to LDC, values the company at GBP48m (US$71.3m). Fever-Tree’s founders Charles Rolls and Tim Warrillow, who hope to boost the firm's presence in the UK, Spain and the US and the other 32 markets it operates in as a result of the deal, retain the remaining 51%.
In a statement today, Warrillow said he is “confident” that LDC will “help us realise our ambitious international growth plans”.
Two representatives of LDC, the private equity arm of Lloyds Banking Group, will join Fever-Tree's board - Daniel Sasaki, MD of its London investment team and Bertie Aykroyd, investment director.
Sasaki said: “We are delighted to be backing Charles and Tim and we are committed to supporting them in unlocking further global expansion in this premium consumer niche.”
Fever-Tree has seen average annual sales rises of 60% over the last three years, according to LDC. In the next three years, the company forecasts around 25% annual sales growth for the UK and Spain and 50% for the US.
It is also aiming for growth in Canada, Italy, Australia, Japan, Colombia and Germany and expects to launch into more Latin America markets.
This story initially stated that LDC was taking a 51% stake in Fever-Tree. We apologise for any confusion.
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