3G Capital acquires majority stake in Dutch company Hunter Douglas

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December 31 (Reuters)3G Capital private equity firm has accepted at buy one control stake in Hunter Dutch Window Covering Group Douglas NV HUDN.ASin an agreement based on a enterprise value of about $ 7.1 billion, the companies said in a joint statement.

3G Capital, best known for its investment in the food and drink sector, will pay 175 euros per share to buy a 75% stake in the company that makes blinds and shutters.

The Sonnenberg family, who founded the company over 100 years ago, will retain a 25% stake.

The price is a 73% premium over the Hunter Douglas stock closing price on Thursday of 101.40 euros and a 64% premium over the all-time Hunter Douglas closing high of 106.40 euros.

“As a private company, Hunter Douglas will have the opportunity to advance and grow our business while preserving the family culture and strong stakeholder relationships that have been at the heart of our success,” said David Sonnenberg , co-CEO of the Dutch group. .

Once the deal is done, Sonnenberg, will be assume the role of executive chairman.

João Castro Neves, senior partner at 3G Capital, is expected to be the CEO of the company, the statement noted. Neves is a member of the board of directors of Kraft Heinz KHC.O, another 3G Capital investment.

3G has made a name for itself in American businesses by implementing major debt-financed M&A deals, followed by significant cost reductions.

The management philosophy, developed by Brazilian billionaire financier Jorge Paulo Lemann and Brazilian investment bankers Marcel Herrmann Telles and Carlos Alberto Sicupira, was pioneered by Budweiser brewer Anheuser Busch InBev, the world’s largest brewer, which they helped create through a series of major mergers.

3G Capital also brought together the Burger King and Tim Hortons fast food chains in 2014 in an $ 11 billion deal.

($ 1 = 0.8829 euros)

(Reporting by Mrinmay Dey in Bengaluru and Keith Weir; Editing by Sandra Maler and Jane Merriman)

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