Double whammy for Bain

Bain Capital has spent more than €3bn on two European investments in as many weeks.

First, Aurigo Management and a host of other buyout firms lost out to the US private equity firm in the circa €1.9bn sale of UK food distribution group Brake Bros.

Clayton Dubilier & Rice put the business up for sale in March this year, having backed the £434m (€643.5) buyout of Brake Bros in August 2002.

Bain Capital is believed to have beaten substantial competition, including Archie Norman’s Aurigo Management, US trade buyer Sysco, Blackstone, Kohlberg Kravis Roberts, CVC, Cinven, BC Partners and TPG.

The second deal saw the acquisition of German boat builder Bavaria Yachtbau for €1.3bn, five times the company’s annual revenues.

Bain said the purchase was being made with the backing of the management team, who will continue to run Bavaria Yachtbau. Meanwhile, company founder and managing director Winfried Hermann will withdraw from day-to-day management and sit on the advisory board.

Bavaria Yachtbau made sales of €271m to the year July 2006 and sold 3,500 yachts during that period. Other bidders for the boat builder were UK private equity groups Doughty Hanson and Cinven. The Hermann family was advised by Network Corporate Finance, while fellow shareholder Yachtagentur Josef Meltl Beteiligungs was advised by Ermgassen & Co.