Altamir - 2018 Registration document

Business description and activities

Presentation of the Company

1

www.aebgroup.com

1) Business description AEBGroup is aworldwide leader in biotechnological ingredients and related services for wine, food and beverages. With a unique coverage across five continents, AEB Group employs more than 300 persons, including 170 agents and sales representatives in 13 countries. The company has eight production units, four R&D laboratories and seven quality control laboratories globally and collaborateswithmore than20universities and research institutes to foster continuous innovation. It provides its clients with highly differentiated solutions based onmore than 600proprietary products and specialty equipment, especially designed for the wine, beer, juice, cider and food industry. 2) Investment rationale AEB Group is a leading supplier of biotechnological ingredients and equipment, mainly for the wine market. This market is relatively fragmented – the top five players have a total market share of around 55% – and has potential for future consolidation. It combines resilience, low cyclicality and high barriers to entry. AEB Group is well positioned to increase its leadership on this growing and resilient market. It enjoys a strong management team, a culture of constant innovation as well as the experience of a unique network of agents and sales representatives. The company has an attractive business model: exceptional revenue recurrence, high profitability and strong cash conversion.

3) Sources of value creation The investment thesis relies on AEB’s expertise and innovation capabilities as well as a clear strategy for future development. Apax intends to continue extending the company’s geographical coverage and will also lead an ambitious buy and build strategy, leveraging AEB’s existing worldwide sales and agents’ network. Apaxwill conduct a digital transformation of the company. Digital will allow the company to reduce its customer acquisition cost but also to better serve customers through data-driven solutions leveraging its worldwide team of experts. 4) Achievements since the acquisition by Apax Partners SAS (October 2018) A new manager was appointed to the Beer division in Q4 2018 to accelerate the growth in this promising segment. A new subsidiary has been opened in China to serve local customers. In the meantime, some discussions are going on with potential M&A targets. 5) Performance In 2018, revenue increased by 7% to €100m, driven by strong growth in core countries (Italy, France, Spain) and growth at Innotec (the specializedequipment subsidiary). EBITDA improved by 9%, driven by solid top line growth combined with strong operating leverage. 6) Exit The investment thesis aims at creating the undisputedworldwide solution provider in natural processes for wine and beer, before selling to a strategic or a financial buyer.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2018

41.4 m

41.4 m

4.1 %

€

€

I TA LY

33

ALTAMIR 2018

Registration document