Target Overview

MG2MIX is an independent French group specializing in the design and manufacture of premixes and minerals essential for the production of complete animal feed. Founded in 1989, it focuses on catering to various species, including poultry, ruminants, pigs, horses, pets, and rabbits. The group emphasizes tailored solutions, with 90% of its recipes being unique and adapted to species-specific needs, life cycles, geographical constraints, and packaging requirements.

MG2MIX operates as a service-oriented firm, providing high-value added services that includeCustomized feed formulation, performance monitoring in breeding practices, nutritional consulting, audits, and training. The group is also recognized for its commitment to sustainability, striving to reduce the carbon footprint of agricultural production, enhance animal welfare, and pursue international RSE certification.

Industry Overview in France

The French animal feed industry is characterized by its advanced technological framework and commitment to sustainability. French feed manufacturers are increasingly adopting innovative practices that not only improve feed efficiency but also align with regulatory demands related to animal welfare and environmental impact. As global demand for sustainable animal protein rises, this sector faces both challenges and opportunities.

Moreover, the European Union’s strict regulations on animal feed quality and safety propel French companies to enhance their research and development efforts. Initiatives aimed at reducing antibiotic dependency in animal husbandry have sparked innovations such as alternative feed additives and health-promoting ingredients.

Another trend is the growing importance of export markets. France, as a leader in high-quality agriculture, has positioned itself to supply animal feed products to global markets, ensuring compliance with international standards. Consequently, companies are increasingly looking to expand their international footprint to sustain growth amidst domestic competition.

Rationale Behind the Deal

Cerea Partners, through its Cerea Mezzanine IV fund, is supporting MG2MIX’s capital restructuring to facilitate the onboarding of the next generation of management while minimizing the dilution of existing shareholders. This sponsorless financing approach includes a bond issuance complemented by a minority equity investment, highlighting a strategic commitment to enhancing the company’s capacity for growth.

This capital injection is poised to accelerate MG2MIX’s plans for development and expansion, critical as the company continues to navigate an evolving market landscape with a focus on innovation and international growth.

Investor Information

Cerea Partners is a reputable investment firm specializing in mezzanine financing and dedicated to partnering with ambitious management teams in various sectors. Their expertise extends to crafting financial solutions that foster growth while delivering significant returns. The Cerea Mezzanine IV fund’s investment strategy is particularly focused on supporting sponsorless transactions where management teams seek to leverage their capital for strategic development.

This particular engagement with MG2MIX marks Cerea's fourth sponsorless operation in the last year, reflecting their ongoing commitment to collaborative investments that prioritize company values and management expertise.

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The investment in MG2MIX by Cerea Partners is a strategically sound move with potential significant returns. MG2MIX has successfully established itself as a key player in the animal nutrition sector, underpinned by a robust sustainable strategy and a commitment to innovation. With a solid operational foundation and a clear path towards growth, the company is poised to leverage the added capital for expansion and enhancement of its product offerings.

Cerea Partners' involvement not only provides financial backing but also brings invaluable sector knowledge and networks that could help MG2MIX capitalize on emerging market opportunities. This partnership underscores the significance of aligning with well-established financial players to support transformative growth phases.

Moreover, the strategic positioning of MG2MIX in export markets enhances its resilience against domestic competition, making it an attractive prospect for future investment. As the adoption of premix and mineral solutions in animal feed rises globally, MG2MIX is ideally positioned to benefit from this trend.

Thus, this deal represents a promising opportunity for both the investor and the target company, suggesting a favorable outlook for mutual growth in the competitive animal nutrition landscape.

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