Eyrir Invest hf. strengthens its position through an agreement with JNE Partners and The Baupost Group
The funds will provide Eyrir with EUR 175 million in long-term financing to support future growth
Eyrir Invest hf and funds managed by JNE Partners LLP and The Baupost Group have signed an agreement whereby the funds will provide Eyrir with a €175 million four-year loan. Through the agreement, each lender has the right to acquire shares in Marel from Eyrir at the end of the loan period.
The transaction strengthens Eyrir's balance sheet by enabling a significant repayment of bank debt along with additional funds to support the company's growth plans for the coming years.
“It is a great pleasure to have JNE Partners and The Baupost Group joining us as partners in Eyrir Invest. Their strategic insight and global reach creates additional value proposition for Eyrir. Marel's position is very strong despite the development in the global markets, and with the entry of JNE Partners and Baupost, Eyrir is now even better positioned to further support Marel as a principal shareholder. According to the future vision which Marel's management has explained publicly, we expect significant growth and value creation in the coming years for Marel as well as other assets in Eyrir´s portfolio” says Mr. Þórður Magnússon, chairman of the board of Eyrir.
Jonathan Esfandi, Managing Partner of JNE Partners LLP, commented: “We have been invested in Marel since 2017 and strongly believe in the company as a global leader in innovations in food processing. We have great respect for the leadership of Eyrir Invest and Arni Oddur Thordarson at Marel and their achievements over the past two decades. We are delighted to be strengthening that partnership with Eyrir Invest today and look forward to working together to support Marel's continued growth and development as well as other assets that Eyrir Invest holds”.
Eyrir's advisors in connection with the financing were Arctica Finance and LOGOS Legal Services, who were assisted by Arendt. JNE Partners LLP and The Baupost Group were advised by Reed Smith LLP, who were assisted by Elvinger Hoss Prussen.
More about JNE Partners
JNE Partners LLP is an investment manager based in London. The firm has a 16-year history as a long-term investor in public and private markets across Europe and manages over $1bn in assets.
More about The Baupost Group
The Baupost Group is a Boston-based investment manager with a long-term, value-oriented approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm's largest client.
More about Eyrir Invest
Eyrir Invest hf. is an international investment company that focuses on investments in companies that have the potential to become sustainable global leaders. The company has been a principal shareholder in Marel hf. for about 18 years and holds approximately 25% of the issued shares in Marel.