Luther advised Warsteiner on the investment, while Binnewies Hennemann performed certification.
Hye, founded in Augsburg by Andre Klan, Cathy Hummels and Cathy Hummels sells ‘flavoured water’, which has been enriched to include vitamins, minerals, fruit and plant extracts. Prior to Warsteiner’s involvement, the start-up had already been funded by Denis Gibisch and Daniel Gibisch, founders of Little Lunch.
Warsteiner continues to focus on expansion by purchasing a minority stake at Hye. The private brewery was founded in 1753. It has focused its strategy on acquisitions to improve its core beer business. However, it has also looked for investment opportunities in new areas.
GRUB BRUGGER advised Hye along with a team headed by Hendrik Wolfer.
Hendrik Wolfer, Grub Brugger:
We would love to hear more about your role in this transaction.
Hye is still very young. We brought together the interests and views of the founders, and provided legal support during negotiations with Warsteiner’s M&A group. Because of the shared experience the founders had with transactions, I have worked with Hye’s team before. We are a well-coordinated group and were able to create a very efficient process.
The complexity of these transactions means that the advice effort for newcomers can be quite intensive. This was not the case in this instance. So we were able to focus on the corporate and contractual aspects, which was my responsibility; IP issues were dealt with by Dr. Michael Jilek, my partner. The transaction went smoothly because all parties were willing to solve problems.
Which key factors should be considered when investing to make sure that both sides get a great deal?
An established company may have a different corporate culture to a start-up than one that is well-known. It takes a lot to understand the viewpoint of the other side when such divergent cultures meet. This has been a great collaboration between all parties. This is how Hye’s innovative team and Warsteiner’s experience and size will make for a great partnership.
How do you see the investment having an impact on these two companies and the German beverage market as a whole?
Hye’s wish is for sales to be increased in the shortest time possible with the new investment. This will allow for the opening of the European functional beverage market.