IK completes CSR-linked financing for Kersia’s acquisition
IK Investment Partners (“IK”) yesterday allocated the financing for the IK IX Fund to acquire a majority stake in Kersia. Kersia was created in 2016 and has become a global leader in biosecurity solutions for the food and beverage, farming and healthcare industries with a strong focus on sustainability. It also benefits from superior and differentiated innovation and R&D capabilities combined with leading operational and regulatory best-practices.
The acquisition of Kersia has been financed through a Corporate Social Responsibility (‘CSR’) – linked syndicated term loan B placed with institutional investors in the European leveraged loan markets.
The Company has an existing and far-reaching CSR strategy that centres around its ‘Act for Positive Impact’ program, embracing the need to establish a fully circular economy and in the long-term, to mitigate the negative impact companies can have on communities and the environment. The strategy is led by a dedicated CSR Operational Committee, supported by managers who are responsible for rolling the CSR program in each of the Group’s markets.
Kersia will adhere to three Key Performance Indicators (‘KPIs’) that will be tracked, monitored, and externally verified. Firstly, the Company will be required to implement systems to collect and recycle customers’ packaging. Secondly, Kersia will continue to increase its share of green products. Finally, it will maintain and expand its employee shareholding scheme.
The Company’s evaluation of these KPIs will be carried out by an independent auditor, which will determine the premium or discount on the margin of the debt and provide a financial incentive to achieve these goals.
Thierry Aoun, Capital Markets Director at IK said: “We are immensely proud to be one of the earliest adopters of this unique financing – the first of its kind for a company and for a financial sponsor in France – and we are excited to work with Kersia to deliver measurable outcomes across environmental and social considerations. By incorporating CSR-linked KPIs that are clear and binding, we are aligning Kersia’s ‘Act for Positive Impact’ program with IK’s ESG commitments for the benefit of all stakeholders.”
Dan Soudry, Managing Partner at IK and advisor to the IK IX Fund said: “Kersia’s business model revolves around biosecurity in crucial end-market, namely food, farm and healthcare, and for this reason CSR has been all-along at the heart of the Company’s strategy. As part of our ongoing partnership we will be supporting the management team’s continuing focus on these areas, and this innovative financing will play a key part in enabling Kersia’s sustainable growth.”
For further questions, please contact:
IK Investment Partners
Phone: +44 (0) 7584 142 665