Carlsquare advised The Quality Group on a majority investment by CVC Capital Partners
CVC Capital Partners VIII (“CVC Fund VIII”) has acquired a majority stake in The Quality Group (“TQG”). CVC Fund VIII will invest alongside all previous owners of TQG, who will reinvest in the business as minority shareholders. Founders Benjamin Burkhardt and Christian Wolf will continue to play key roles in the operational development of TQG. Financial terms of this transaction were not disclosed.
TQG is a leading manufacturer of innovative sports performance nutrition products and healthy, low-sugar food alternatives in the DACH region. Formed in December 2020 through the merger of “ESN” and “More Nutrition” the group offers a wide range of high-quality lifestyle products such as protein powder, weight management products, vitamins, and sports supplements. Direct interaction with its customers is at the heart of TQG’s strategy – from the sale of products via own web shops to their partnerships with more than 300 influencers who are part of its brands’ loyal customer base. Through these partnerships and its own channels, TQG reaches more than five million followers daily, on various social media platforms. TQG’s headquarters and production facilities are based in Elmshorn near Hamburg, employing 360 people.
Together with the founders, CVC will invest to further accelerate the business’ growth path by scaling its logistics activities and improving the customer experience, as well as expanding the product portfolio in both the DACH region and internationally. TQG will benefit from CVC’s entrepreneurial expertise and large international network.
CVC has been active in the German market for more than 30 years and successfully works with multiple large and medium-sized companies. This includes several companies in which the founders and founding families are still co-invested, such as Douglas, Europe’s leading premium beauty retailer, or the Messer Group, a global leader in industrial gases.
The closing of the transaction is subject to approval by the relevant regulatory authorities and is expected at the end of the second quarter of 2022.
Christian Wolf, Co-Founder of The Quality Group, commented: “Carlsquare played an important role in the execution of our growth vision, from the merger to further acquisitions and finding the right partner for our next growth chapter. With CVC they have found the perfect partner for our needs in the coming years, both on a professional and personal level. They have always been with us as trusted and knowledgeable advisors, willing to go the extra mile. We are more than happy that Carlsquare has supported us on this challenging journey.”
Carlsquare acted as exclusive financial advisor to The Quality Group GmbH and supported the management and shareholders in identifying the ideal partner during a structured process, including the preparation of investment documents, the coordination of the due diligence process and the transaction negotiations.