The Riverside Company (Riverside), a global private investor focused on the smaller end of the middle market, has sold E&A Scheer and its subsidiary The Main Rum Company, together the largest global blender and vendor of premium rum in bulk, to Platinum Equity.
With origins dating back to 1712, E&A Scheer specializes in sourcing and selling tailor-made rum blends and rare, aged rums in cask. E&A Scheer is one of the world’s largest rum specialists, connecting distilleries with brands, bottlers and distributors with a value-added service that includes blend creation, ageing, storage and distribution, as well as brand development services.
Damien Gaudin, Partner at Riverside Europe, commented: “Since its investment in E&A Scheer in February 2019, Riverside has focused on growing the company’s top line by enlarging and internationalizing the customer base, as well as improving profitability through an increased focus on ultra-premium rum categories such as rare and aged casks. As a result, the company more than doubled its EBITDA during Riverside’s ownership. In addition to the strong sales generated from the EMEA region, the company has strengthened its presence in North America, laying the foundations for future growth.”
Next to this, Riverside strengthened the management team with the appointment of a new CEO, CFO and CCO. Riverside developed E&A Scheer’s digital and automation processes and increased its focus on ESG through decarbonization initiatives, water and waste reduction and extending the offering with Bonsucro, Fair Trade and Organic Rums. Under Riverside's ownership, the company more than doubled its workforce, moved into a brand-new headquarter office and created customer experience centers at E&A Scheer in Amsterdam and at The Main Rum Company in Liverpool.
Karsten Langer, Managing Partner of Riverside Europe, added: “The successful exit of E&A Scheer is another example of Riverside’s expertise in and dedication to the food and beverage sector, and marks the seventh exit achieved by the Riverside Europe team over the past 24 months. The exit demonstrates our ability to lead businesses through challenging macroeconomic conditions such as Covid-19, while simultaneously achieving consistent growth. Working together with a strong management team, we are proud to have contributed to the remarkable development of a long-standing heritage, transforming the company into the modern age with the use of technology and an increased focus on ESG.”
Maarten Obbink, CEO of E&A Scheer, commented: “Indeed, it has been a real pleasure to work alongside Riverside to further grow our unique business. It is great to see how rum is conquering the world of spirits globally and how our company is able to support brands to grow the category. Based on a clearly defined strategy, including further geographical expansion and with a distinctive role as an ESG partner, the company is looking forward to continuing its growth path in close cooperation with its new investor, Platinum Equity.”
Working with Langer and Gaudin on the transaction at Riverside were Vice President Maxime Meulemeester and Associate Sebastiaan Pauwels. Senior Legal Counsel Peter Parmentier provided legal support and Stijn Deelen was the operating partner on the investment.
William Blair & Rabobank (joint M&A Advisors), Allen & Overy (Legal), Bain & Company (Commercial), Deloitte (Financial, Tax and Pension) and PwC (ESG) advised Riverside and E&A Scheer on this transaction.