(Bloomberg) -- European cocoa supplier Natra is in conversations with lenders, including private credit funds, to finance a potential purchase of two businesses, according to people with knowledge of the matter.

The Madrid-headquartered company is exploring the acquisition of German chocolate business Gubor Schokoladen and Italian hazelnut-spread producer Nutkao, said the people who declined to be identified as the details are private.  

Buyout firm CapVest, Natra’s owner, is reaching out to lenders for debt proposals that could be as large as €700 million ($754 million) for both businesses, the people said. The company may also choose to go to the broadly syndicated leveraged loan market for the debt, they added. 

Conversations are ongoing, details of the financing may change or the deals could fall through, the people said.

A CapVest representative declined to comment, while Natra and Nutkao couldn’t be reached for comment. Chocolate manufacturer Ruebezahl Schokoladen, to which Gubor belongs,didn’t immediately respond to a request for comment.

The talks underscore a revival of private-equity related M&A in Europe as the credit markets rally, with Wall Street banks launching large LBO financings in the broadly syndicated market. 

CapVest bought the chocolate and cocoa producer in 2022 from Investindustrial, according to a statement at the time. Founded in 1943 in Spain, Natra produces chocolate bars, pralines and spreads among other products. 

--With assistance from Eleanor Duncan.

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