Lehman Brothers Merchant Banking to acquire the Spumador Group

26/09/05 Lehman Brothers Merchant Banking announces that it has entered into a definitive agreement to acquire the Spumador Group, a family-owned Italian branded and private label soft drinks and mineral water bottling business. The Spumador Group is the combination of three separate companies: Spumador Fonte S. Antonio S.p.A. (“Spumador”) based in Caslino al Piano (Como), Fonti San Carlo Spinone al Lago S.p.A. (“San Carlo”) based in Spinone al Lago (Bergamo) and Acque Oligominerali Valverde S.r.l. (“Valverde”) based in Quarona Sesia (Vercelli).

With total revenues of approximately €150 million, Spumador Group bottles mineral water at the source under its principal mineral water labels, Fonte S. Antonio, Fonte S. Francesco, Valverde, Sancarlo Spinone, and Fonte S. Andrea. In addition, the Spumador Group produces and sells carbonated and flat soft drinks mainly under the Spumador and Sancarlo brands as well as under large retailers’ labels, and fills on behalf of industrial clients such as several Coca Cola bottlers or Beverage Partners Worldwide.

Founded in 1888 by the Verga family in the province of Como, the Spumador Group has grown to become an important mineral water and soft drinks bottler in Italy, producing 1.1 billion litres per year. It is one of few Italian bottling groups that fill a wide range of mineral water, carbonated and flat soft drinks, fruit juices, and milk-based drinks in glass, PET and can formats. The Spumador Group employs over 400 employees and operates 22 bottling lines in five plants in Italy, including two of Europe’s most modern aseptic filling lines.

In acquiring the Spumador Group, Lehman Brothers Merchant Banking is partnering with the Verga family, the founders of the Spumador Group over 110 years ago, as well as with the Colombo family, founders of San Carlo, who will collectively retain 24% in the Spumador Group.

In this transaction Lehman Brothers Merchant Banking and current management will also partner with José Arozamena, CEO of Cambium USA, Inc. (“Cambium”) who will assume the role of Chief Executive Officer of the Spumador Group. Cambium assisted Lehman Brothers Merchant Banking in identifying the investment opportunity and in negotiating the transaction. José Arozamena has more than 20 years experience in investing and managing companies in the US, Mexico and Europe. In particular, he led the successful acquisition, management of, and exit from Spain’s traditional soft drinks company, La Casera.

Lehman Brothers Merchant Banking is part of the Private Equity Division of Lehman Brothers Inc., member SIPC. Lehman Brothers has a long history in private equity investing with total assets under management of more than $10 billion. The Private Equity Division leverages the breadth and depth of Lehman Brothers' global presence and expertise across a wide range of products, industries, and geographies. Lehman Brothers creates and raises funds and invests in asset classes where the firm has strong capabilities, proprietary deal flow, and an excellent reputation, offering attractive investment opportunities to its institutional and individual investing clients. Currently, more than 200 professionals cover five core asset classes: Merchant Banking, Venture Capital, Real Estate, Fixed Income-Related Funds, and Private Funds Investments.

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world.