27 October 2017
CMS advises Coast2Coast, a private investment fund, on the acquisition of a manufacturer of patés and soups operating under the Profi brand 'Wielkopolska Wytwórnia Żywności Profi'. The closing of the deal is subject to clearance by the Office of Competition and Consumer Protection.
With the support of the current management board and the company’s employees, the new owner plans to accelerate Profi’s growth on the paté and soup markets, as well as in the fast growing healthy food segments such as ready-to-eat dishes, fresh soups and lunch salads. With previous year’s revenue exceeding PLN 115m, the company has more than 300 employees and a modern production plant in Grabów nad Prosną in the Wielkopolskie Province.
Profi's acquisition is the next step in the growth of the South African fund in the CEE and Coast2Coast’s fourth deal on the Polish market. The fund has already invested in Poland in Stella Pack, a manufacturer of plastic household goods, Krosno Glass acquired in 2016, as well as an investment in Sonko in 2015, a company operating on the market of rice wafers and healthy snacks.
“This deal confirms the interest in the broadly understood food industry that has been observed for some time, in which interesting investment opportunities can still be found. The growing activity of family offices in our part of Europe is also worth noting. Looking at the European market we can clearly see that a significant part of the transactions involve family offices, often as joint investments with private equity funds” – emphasises Marek Sawicki, partner managing the corporate practice at CMS.
The Coast2Coast Fund was advised by Marek Sawicki, legal advisor and partner and Julita Mazurkiewicz, advocate and senior associate from the CMS corporate team.