Lehman spin-out Trilantic sells MicroStar to Freeman Spogli


keg-2_sqTrilantic, the buyout firm set up three years ago by five former dealmakers from the merchant banking arm of Lehman Brothers, has sold MicroStar Solutions, a company that manages keg shipments for breweries operating in the US craft beer industry.

The firm has sold the business to mid-market private equity firm Freeman Spogli & Co, the founding Pohlad family and the management of MicroStar Solutions.

Although financial terms of the deal were not disclosed, previous reports suggested Trilantic could make as much as three times its initial investment from the sale.

MicroStar was set up in 1996 and owns the largest independent keg fleet in the US, managing a pool of more than 1.4 million kegs and the corresponding logistics for over 160 craft brewery customers.

The company also works with more than 1,600 distributors to help their craft brewery customers reach thousands of food and beverage retail establishments across the country.

Harris Williams & Co and Wells Fargo Securities acted as sell-side advisors to Trilantic Capital Partners and MicroStar, while McNally Capital advised the Pohlad family.

Trilantic bought MicroStar Solutions from Macquarie Group in 2010, marking the firm’s first platform investment following its spin-out from Lehman Brothers the previous year.

The deal was made through Trilantic Capital Partners IV (North America), which is now almost fully invested, while the management team is understood to have reached a $923m first close in August for the fund’s $2bn successor.

Trilantic Capital Partners V (North America) has a hard cap of $3bn, according to disclosures from Pennsylvania Public School Employees’ Retirement System.

In November two sources told AltAssets that Trilantic will launch its first independent European fund in January next year with a target of €700m.

The London team is in the process of hiring a placement agent for the vehicle after its most recent deal to invest in Spanish telecoms business Euskaltel took it over the 80 per cent mark for Fund IV.

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