Acquisition of Pon Material Handling Europe by Royal Reesink
Headquartered in Apeldoorn, Royal Reesink is a leading distributor of agricultural, construction, and material handling equipment that is primarily active in the Western Europe as well as in Kazakhstan and Turkey. It prides itself in the broad spectrum of products it provides to clients which it is constantly looking to expand.
In the context of the company’s plans to acquire Pon Material Handling Europe, an importer with strong brands for internal transport, cleaning machinery and hydraulic components systems, the company required a significant amount of financing. It intended to split this equally between equity, in the form of a private placement and public issue via Alternext, a term loan, vendor financing and an additional loan to finance a potential earn-out scheme for executives of the target company.
The equity component was vital as it gave additional certainty to the lenders. For the transaction to succeed, sufficient equity had to be raised, which required us to engage with the existing shareholders to determine their level of interest and arrange underwriting. Additionally, we advised on the structure, timing and organisation of this part of the transaction, and became the Selling and Listing Agent of the equity issued.
NIBC provided access to the equity Reesink needed to complete the deal. Our longstanding relationship with its main shareholders was important in our engagements and efforts to secure the necessary investments. In addition, our knowledge and expertise in the listed small and mid-cap segment in the Netherlands enabled us to attract new long-term shareholders.
The acquisition of Pon Material Handling was completed successfully. The company’s new product offering, which was partly funded by capital market transactions, demonstrates Royal Reesink’s entrepreneurial outlook and has given it a stronger position to meet its clients’ needs.