Apax IX agrees to acquire Tosca Services
The Apax IX Fund (“Apax IX”) has today announced that it has reached a definitive agreement to acquire Tosca Services, LLC (“Tosca”), a leading provider of supply chain solutions and reusable packaging to the perishable markets.
Founded in 1959, Tosca has a rich history of innovation that has driven its growth from a regional cheese barrel refurbishment business into a leading North American enterprise focused on supply chain solutions and reusable packaging across a wide array of perishables, including eggs, beef, pork, poultry and produce. With this strong track record across supply chain solutions and crate design, Tosca is uniquely placed to continue to deliver innovation-led growth in what is an expanding market.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Funds advised by Apax Partners to acquire Tosca Services
Partnership creates uniquely positioned business able to address complex grocery supply chain challenges
Funds advised by Apax Partners (“Apax Funds”) have today announced a definitive agreement to acquire Tosca Services, LLC (“Tosca”), a leading provider of supply chain solutions and reusable packaging to the perishable markets of protein, eggs, produce and cheese. Existing shareholders will retain a minority ownership position in the company. The transaction is subject to customary closing conditions and is expected to close in Q4 2017. Terms of the transaction were not disclosed.
Founded in 1959, Tosca has a rich history of innovation that has driven its growth from a regional cheese barrel refurbishment business into a leading North American enterprise focused on supply chain solutions and reusable packaging across a wide array of perishables, including eggs, beef, pork, poultry and produce. The company today employs over 500 people and operates 14 service centers across the United States working with the nation’s largest and most influential grocery retailers and suppliers.
“Tosca’s reusable packaging solutions drive improved efficiencies throughout the entire perishable supply chain, resulting in substantial business benefits and a better overall customer experience,” said Eric Frank, president and CEO of Tosca. “There is significant momentum in the market for reusables and we are excited about the continued growth opportunities Apax affords us.”
Ashish Karandikar, a partner at Apax Partners, said: “This is a prime example of Apax partnering with a strong management team in one of our core industry sectors. Through Apax Funds’ previous ownership of a reusable plastic container pooler, we have developed an appreciation for the growth opportunity within grocery supply chain and have over the years been deeply impressed by Tosca’s stellar track record of innovation and growth.
“In today’s complex and fast-changing grocery environment, challenged by increasing pricing competition, grocers need a solution like Tosca’s that drives supply chain efficiency and simplicity while also positively impacting the environment. We see significant opportunities for the company to continue to innovate and are delighted to work alongside the existing management team as the company enters its next phase of growth.”
Apax Partners was advised by Simpson Thacher & Bartlett LLP (legal counsel) and KPMG (accounting advisor).
Tosca was advised by William Blair & Company LLC (financial advisor), Kirkland & Ellis LLP (legal counsel), RSM US LLP and PriceWaterhouseCoopers, LLP (accounting advisors).
Contact details
Investor enquiries
Sarah Wojcik
Telephone: +44 (0)20 7666 6573
Email: sarah.wojcik@apax.com
Media enquiries
Andrew Kenny
Telephone: +44 (0) 20 7872 6371
Email: andrew.kenny@apax.com
Company Secretary
Jacques Colley
Telephone: +44 (0) 1481 749 700
Email: AGA-admin@aztecgroup.co.uk
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value (NAV).
The investment policy of the Company is to make private equity investments in Apax Funds and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors.
Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. It operates globally and has more than 30 years of investing experience. Apax Partners has advised funds that total over €42 billion in aggregate as at 30 September 2017*. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.
* Funds raised since 1981, commitments converted from fund currency to EUR at FX rates as at September 2017