Divestiture • Business Services

Warburg Pincus and Cinven Acquire Argent Group

On September 1, 1997, private equity firms Warburg Pincus and Cinven acquired business services company Argent Group from Premier Foods for 88M EUR

Acquisition Context
  • This is Warburg Pincus’ 3rd and Cinven’s 6th transaction in the Business Services sector.
  • This is Warburg Pincus’ 43rd and Cinven’s 58th largest (disclosed) transaction.
  • This is Warburg Pincus’ 5th and Cinven’s 57th transaction in the United Kingdom.
Investment Fate
  • Argent Group was sold to a consortium of financial buyers in 2010.

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M&A Deal Summary

Date September 1, 1997
Target Argent Group
Sector Business Services
Buyer(s) Warburg Pincus
Cinven
Sellers(s) Premier Foods
Deal Type Divestiture
Deal Value 88M EUR

Target Company

Argent Group

London, United Kingdom
Argent Group Plc Based in the UK, the Netherlands and New Zealand, these businesses included food preparation and distribution, waste disposal, printing and packaging. On acquisition the companies were renamed Argent.
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Buyers Overview 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


Deal Context for Buyer #
Overall 19 of 493
Sector: Business Services 3 of 21
Type: Divestiture 1 of 21
Country: United Kingdom 5 of 27
Year: 1997 4 of 5
Size (of disclosed) 43 of 50
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-07-22 Zilog

San Jose,, California, United States

ZiLOG operates as a fabless semiconductor supplier of microprocessor and microcontroller semiconductor products. ZiLOG designs, develops, tests and markets a portfolio of semiconductor devices for various applications used in consumer electronics, home appliances, security systems, point-of-sale terminals, personal computer peripherals, personal health and medical products.

Sell $527M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1997-12-02 Covad Communications Group

San Jose, California, United States

Covad provides a wide range of access and hub aggregation services, including Ethernet, T1, and DSL. Covad manages a robust, next-generation IP/MPLS network that efficiently delivers integrated voice, video, and data solutions. Covad broadband services are currently available in 45 states and 240 major metropolitan areas, and can be purchased by approximately 11 million businesses, representing over 60 percent of all U.S. businesses.

Buy -
Buyer

Cinven

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1977
PE ASSETS 39.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

Cinven is a private equity firm focused on buyout investments in growing, profitable businesses located throughout Europe and North America. Sectors of interest include business and financial services, healthcare, industrial, retail, leisure, consumer, technology, media, and telecommunications. Cinven looks to invest a minimum of €200 million in companies with minimum enterprise values of €400 million. Cinven does not invest in start-ups or development phase companies. Cinven was established in 1977 and is headquartered in London.


Deal Context for Buyer #
Overall 75 of 186
Sector: Business Services 6 of 12
Type: Divestiture 12 of 35
Country: United Kingdom 57 of 88
Year: 1997 7 of 7
Size (of disclosed) 58 of 62
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-08-01 Macarthy Group

West Midlands, United Kingdom

Macarthy Group Ltd. was a manufacturer of specialist generic pharmaceuticals. Its focus was on securing strong market positions with high margins by developing new presentations of off-patent generic pharmaceuticals.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1997-10-01 Newsquest

United Kingdom

Westminster Press's failure to take advantage of technological advances presented Cinven with an opportunity for value enhancement.

Sell -

Seller Profile 1

SELLER

Premier Foods

St Albans, United Kingdom

Category Company
Founded 1975
Sector Food
Employees4,137
Revenue 1.1B GBP (2025)
DESCRIPTION

Premier Foods is a manufacturer and distributer of branded and own label food products in the United Kingdom, other European countries, and internationally. It operates through grocery, sweet treats, and international segments. Premier Foods was founded in 1975 and is based in St Albans, the United Kingdom.


Deal Context for Seller #
Overall 1 of 9
Sector: Business Services 1 of 1
Type: Divestiture 1 of 7
Country: United Kingdom 1 of 7
Year: 1997 1 of 1
Size (of disclosed) 1 of 5
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-06 Marlow Foods

Stokesley, United Kingdom

Marlow Foods, the owner of Quorn branded food products, in the first half of 2003 from AstraZeneca. Quorn is the UK?s number one brand in the fast growing healthy meat alternative food segment with an established and successful presence in a number of European territories. Marlow manufactures an extensive range of branded chilled and frozen ingredients and meals for this market from its manufacturing base in north Yorkshire.

Buy £172M