Jumbo: A remarkable growth story!
- Laurus decided to divest its Konmar and Edah stores.
- The sales process was managed by a team of ABN AMRO Corporate Finance, most of whom are now part of Quore Capital.
- Jumbo successfully participated in the auction and acquired 12 Konmar stores, marking the start of an impressive string of acquisitions to realize their growth strategy.
- Jumbo felt ready for a next step to grow the company and engaged with Quore Capital to prepare for potential opportunities and analyze different strategic options.
- The timing coincided with Casino, as majority shareholder of Super de Boer, to exit the Dutch market.
- After an intense, competitive public offer process, in December 2009 Jumbo acquired Super de Boer.
- During the second half of 2010, it became clear that CVC was looking for an earlier than expected exit of its majority stake in C1000.
- Jumbo was still focused on finalizing the integration and transformation of Super de Boer stores so timing was not ideal for Jumbo, however missing out on this transaction was inconceivable.
- During 2010, the integration process of Super de Boer consistently showed strong results and the debt pay down was ahead of schedule.
- As part of this process, Quore Capital advised Jumbo on the sale of 43 Super de Boer stores to other supermarket chains.
- The newly created purchase combination with partner C1000, Bijeen, got considerable traction.
- During the years that followed, the acquired C1000 stores again outperformed initial expectations. In 2015, Jumbo rebranded the final C1000 store and the integration was completed.
- After the successful acquisitions and integrations of Super de Boer and C1000, Jumbo focuses on optimization of its head office activities in 2016. No acquisitions were anticipated; at least for one month.
- In 2014, we introduced Jumbo to La Place management. This allowed us to prepare a business case well in advance.
- In December 2015, Dutch non-food retailer V&D files for bankruptcy.
- In January 2016, Jumbo takes over the La Place restaurants, in a swift deal approved by the administrators overseeing the bankruptcy process.
- In January 2016, Jumbo announced to outsource 4 non-core activities, (i) Ecodet, the financial admin. activities for franchisers, (ii) B.sis, provider of in-store IT and maintenance, (iii) the central butchery business in Beilen, and (iv) the payroll admin. and related HR activities
- Quore Capital organized 4 competitive processes during which Jumbo found strong and reliable partners to take over the aforementioned activities
2006: Meeting as opposites
In 2006, Laurus decided to divest its Konmar and Edah stores. The sales process was managed by a team of ABN AMRO, most of whom are now part of Quore Capital.
At that time, Jumbo was already known for its ambitions to grow beyond their regional reach, armed with a well thought-out and executed customer centric formula. Their vision on the changing landscape of the Dutch food retail market, combined with their entrepreneurship and can-do mentality were major ingredients for Jumbo to successfully participate in the auction and acquire 12 Konmar stores. This marked the start of an impressive string of acquisitions to realize their growth strategy.
2009: A well prepared big leap forward
In 2009, Jumbo’s organization and formula had even further developed and strengthened its customer proposition. Jumbo felt ready for a next, major step to grow the company. To prepare for potential opportunities, Quore Capital was engaged to analyze different strategic options and their financial & tactical implications. This phase of preparation coincided well with the timing of Casino as majority shareholder of Super de Boer to exit the Dutch market which caused one of the strategic options to materialize. In a tough economic climate Jumbo’s management (Frits van Eerd en Ton van Veen) knew exactly when and how to act and make a big leap forward, leaving the competition behind.
During the first phase of our engagement, together with Jumbo we focused on the creation of a detailed financial and operational model that allowed Jumbo to calculate and evaluate the strategic options and financing implications. The model allowed Jumbo to have detailed discussions with financing banks in an early stage, even before the start of any process. In the end, this preparation and consequent support from the financing banks proved to be a key differentiator towards competing parties that were less up to speed when Super de Boer came to market under challenging economic conditions.
After a few months of strategic and financial preparation, Jumbo engaged in exploratory discussions with Casino on a potential bid on Super de Boer. During the bid process which followed, we continued to assist Jumbo with our complete suite of advisory services (including deal/bid tactics, structuring, back-to-back deal with C1000, creation of Bijeen (purchase combination with C1000), arranging leveraged financing, etc). After an intense, competitive public offer process, in December 2009 Jumbo acquired Super de Boer through a unique transaction structure for a listed company, namely by way of a purchase of assets and liabilities.
As a result of Jumbo’s vision, thorough preparation, flawless execution and integration skills, this acquisition has been a tremendous success for Jumbo as both revenue and margins have significantly outperformed initial targets. After closing, we continued to advise Jumbo on various business issues (e.g. budgeting support, setting operational targets sale of selected Super de Boer stores to SuperUnie members, monitoring debt pay down).
2010-2012: Acquiring the purchase combination partner
During the course of 2010, the integration process of Super de Boer consistently showed strong results and the debt pay down was ahead of schedule. The newly created Bijeen with Jumbo’s partner C1000 got considerable traction with the most prominent product manufacturers and was closing important and attractive deals.
During the second half of 2010, it became clear that CVC was looking for an earlier than expected exit of its majority stake in C1000. Jumbo was still focused on finalizing the integration and transformation of Super de Boer stores so timing was not ideal for Jumbo, however missing out on this transaction was inconceivable.
Since the acquisition of Super de Boer, Quore Capital continued to advise Jumbo as a long term partner for their business development activities. Therefore, when Jumbo started to explore the opportunity to acquire C1000, we were ready to assist in the necessary preparations for such a landmark acquisition. Based on our redesigned and further improved financial and operational model combined with an in-depth presentation and explanation of the business case to the banks, Jumbo was once again able to secure – an even more significant amount of – bank financing of approximately EUR 1,3bn for this transaction in a still challenging debt market (2011-2012). In anticipation, we developed an innovative store location model to be used in the dialogue with the Authority for Consumers & Markets (ACM) on the required remedies. This allowed us to keep the number of remedy disposals to minimum and also limited the time for the decision making process with the competition authorities.
Our deal management advisory consisted of coordinating the input from all other advisors, discuss deal tactics and be a true independent counsel for the management and the Van Eerd family. Also other aspects and implications of the transaction such as risks of integration, financing risk, governance, etc. were topics vividly discussed with the stakeholders of Jumbo.
We supported Jumbo with the sale of 82 stores to Ahold and 54 stores to Coop. As a result of these transactions Jumbo met the NMA requirements and payed down a significant amount of the acquisition financing.
Again, we assisted Jumbo on several post-closing assignments.
2013-2015: Focus on integration
During the years that followed, the acquired C1000 stores again outperformed initial expectations. In 2015, Jumbo rebranded the final C1000 store and the integration was completed.
After the successful acquisitions and integrations of Super de Boer and C1000, Jumbo focuses on optimization of its head office activities in 2016. No acquisitions were anticipated; at least for one month…
2014-2016: La Place, an (un)anticipated opportunity
In December 2015, Dutch non-food retailer V&D files for bankruptcy. In January 2016, Jumbo takes over the La Place restaurants, in a swift deal approved by the administrators overseeing the bankruptcy process. Initially, Jumbo acquires the independently operated restaurants (60 in total), the company’s assets and its headquarters. Year-end 2017, La Place will expand to over 100 restaurants through a combination of acquisitions (18 AC Restaurants), co-operations (with Hudson Bay, opening approx. 20 new department stores in the Netherlands) and organically opening new restaurants.
With its healthy and local sourcing image La Place was an attractive take-over candidate for Jumbo for many years. Both Jumbo and La Place share the passion for good, fresh and healthy food and the combination (continuing under their respective strong brands) are to further grow in the food services market.
In 2014, we introduced Jumbo to La Place management. This allowed us to prepare a business case well in advance. The early preparation turned out to be a key differentiator once V&D filed for bankruptcy. All potential bidders had to act fast and work under difficult circumstances to come to a responsible offer. In the end, Jumbo was able to act agile and determined in the process, leaving all other bidders behind.
2016: After acquisitions and integration comes optimization; outsourcing of non-core activities
In January 2016, Jumbo announced to outsource (i) Ecodet, the financial administrative activities for franchisers, (ii) B.sis, provider of in-store IT, (iii) the central butchery business in Beilen, and (iv) the payroll administration and related HR activities. The main objectives are to outsource non-core activities and to find reliable and knowledgeable partners to secure employment of the outsourced staff, and to secure the continuity of the high service level at a fair price.
After 4 competitively organized processes, Jumbo meets its objectives: BDO, Simac, Meat Friends and Raet insourced the employees and assets & liabilities of Ecodet, B.sis, the central butchery and the payroll administration respectively.
The basis and fundamentals on which the current organization is built – a wonderful formula, entrepreneurship, skills, ambition supported by an enormous drive to win (the customer) – are Jumbo’s strong ingredients for yet another success.
Key differentiators of Quore Capital to Jumbo
Long term relation between advisor and client built on trust and mutual respect putting business continuity first at all times
Independent position towards financing banks
In depth knowledge of the client’s operations
Creation of a complete set of info to the financing banks, tailored to their needs yet also explaining the business case from Jumbo’s perspective which provided the required comfort to fund several large transactions in a challenging debt market
Advice in successful bidding strategy
Access to network of decision makers in the food retail sector, financial sector and financing banks
Out of the box, creative thinking