January 11, 2024
Platinum Equity Acquires Premium Rum Blending Specialist E&A Scheer
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LOS ANGELES (Jan. 11, 2024) – Platinum Equity announced today the acquisition of premium rum blending specialist E&A Scheer, the largest global blender and vendor of premium rum in bulk, from The Riverside Company.
Financial terms of the transaction were not disclosed.
Headquartered in Amsterdam, Netherlands, E&A Scheer’s origins date back to 1712. The company specializes in sourcing and blending to create high-quality, custom-made rum blends for business-to-business customers. The company’s blending operation is located at its Amsterdam headquarters. Its aging facilities, including subsidiary The Main Rum Company, are located in Liverpool, United Kingdom.
“E&A Scheer has built an impressive legacy over more than 300 years and today plays a unique and essential role in the global rum market,” said Platinum Equity Co-President Louis Samson. “We believe the rum category has promising prospects driven in part by the increasing popularity of new craft brands and the trend toward premiumization. We are excited to help the company capitalize on these opportunities by investing in the company’s continued success.”
E&A Scheer serves a broad and diverse range of customers who rely on the company’s value-added service offering, which includes production of premium multi-source rum blends, access to ultra-premium rare and aged single casks, and creation of custom-made concept bottles.
“E&A Scheer’s scale and unique position in the value chain make it an attractive platform for growth, both organically and through prospective additional acquisitions,” said Platinum Equity Managing Director Fernando Goni. “With our financial and operational resources, we see a lot of runway for E&A Scheer’s continued growth and intend to support it via international expansion and M&A. We are excited to partner with the company’s experienced leadership team on the next chapter.”
E&A Scheer sources rum from over 60 suppliers across more than 40 countries, and holds vast stocks of aged inventory, which allows its master blenders to develop rum blends for any age, style or price point. The company believes it is a crucial player in the premium rum market that can deliver bespoke multi-source rum blends with consistent high quality in any desired quantity with a lead time of only 10 days from order to shipment.
We believe the rum category has promising prospects driven in part by the increasing popularity of new craft brands and the trend toward premiumization. We are excited to help the company capitalize on these opportunities by investing in the company’s continued success.
“We look forward to working with the Platinum Equity team and are confident they will be a great partner,” said E&A Scheer CEO Maarten Obbink. “We believe Platinum’s resources, experience and global reach will benefit our efforts to continue growing and expanding our business.”
The E&A Scheer investment was led by Platinum Equity’s Small Cap investment team, which is experienced in acquiring businesses in Europe and in the food and beverage sector in particular. Platinum Equity’s current portfolio includes Ortona, Italy-based Fantini Wines.
DC Advisory served as financial advisor and Latham & Watkins LLP served as legal advisor to Platinum Equity on the acquisition of E&A Scheer.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 28 years Platinum Equity has completed more than 450 acquisitions.
Photo: Provided by E&A Scheer
