Advent Intl Buys 79% Stake in Bulgaria's Devin For EUR 40 M

Global private equity fund Advent International said it has acquired a 79% stake in Bulgaria's leading water bottling company Devin.

Advent bought the stake at a price of BGN 3.06 a share, valuing the company at a total enterprise value of EUR 40 M.

The top management team of Devin will retain their stake of 6.7% as part of the deal. Advent will launch a takeover bid for the remaining shares of Devin traded on the Bulgarian Stock Exchange.

Advent has been active across Central Europe for 15 years and has already made several investments in the food and drink sector Brewery Holdings in Romania, Star Foods in Poland, Uno in Turkey and Graffigna in Argentina. It is banking on further growth for Devin.

"The company has built a strong position on the local market and established a presence in Romania. We believe that the company and its management team provide an excellent platform for further growth, and are delighted to be able to support this," said Chris Mruck, Advent Managing Partner who will join the Devin Board as a non-executive Director, as cited by the Wall Street Journal.

Founded in 1992, Devin has grown into the country’s number one bottled water company with its self-branded product, according to Advent. The drinks company has also established distribution agreements in Bulgaria for Red Bull and the juice brand Granini in the past two years.

Devin’s management team will be supported by Advent International operating partner Matthew Litobarski, former president of Cadbury Schweppes Europe, who will join as non-executive chairman of the board.

Advent International signed an agreement to buy about 75% of Bulgaria's leading water bottling company Devin, majority owned by Austria's Soravia Group, at the end of September.

Soravia acquired full control of Devin and distributor Devin Royal in 2005 for an undisclosed sum.

The first sale deal to be completed in the Bulgarian water bottling sector this year is expected to be the acquisition of Gorna Banya company by Armenian major businessman Gagik Tsarukyan for EUR 25 M.