Resource Partners funds exit Good Food to Hartenberg
May 5, 2015
Resource Partners funds have sealed the sale of its majority stake in the leading Polish rice cake manufacturer to Czech-based Hartenberg Holding, generating 3.0x cash multiple in less than 4 years since original investment. The deal is supported by the Management of Good Food, who will continue their involvement with the new owner.
Good Food Products Sp. z o.o., with its 2 production facilities based in Skórzewo and Plewiska (both near Poznań, Poland), was established in 1991 as the first Polish manufacturer of rice waffles. Its products are sold primarily under private labels of Polish and Western European modern trade channels, as well as under Good Food brand in Poland. Over the time of Resource Partners involvement in the Company, the sales of Good Food nearly doubled and will exceed PLN 80 million this year.
„We are delighted to announce this exit from Good Food. We have delivered 100% of our initial thesis and managed to transform the Company into the leading contract manufacturer in its category. Good Food is now a key player not only in its domestic market, but in major European countries including UK, the Netherlands or Scandinavia. Good Food still has a strong growth potential in other EU markets. This result was driven by the excellent financial performance of the Company, its clear growth strategy, and last, but not least – its human capital, including the high quality, capable and effective management team. I would like to thank Robert Czajkowski and his team for the great job they have delivered.” – said Piotr Noceń, Managing Partner of Resource Partners.
“It is an important step in the history of Good Food. Resource Partners with its sector experience has helped us to refocus the growth strategy and has driven us towards further expansion to new markets and new products. I believe that Hartenberg will support us in new CEE and German markets.” – commented Robert Czajkowski, CEO of Good Food Products Sp. z o.o.
“We are happy to announce our first deal in Poland. Good Food fulfils our investment criteria, as the company generates strong and stable cash flow. The company has a leading market position mainly thanks to its high quality product, number of innovations and a proven management team that stays with us on-board and will help us further to growth the business. We are acquiring Good Food because we like the product, the healthy food industry and we believe that Hartenberg can bring additional value added through synergies, accelerated organic growth or acquisitions,” said František Tregler, Investment Director of Hartenberg.
About Resource Partners
Resource Partners private equity funds specialize in growth financing of consumer goods and services companies operating within Central and Eastern Europe. As part of its strategy, Resource Partners supports Polish food processing companies having strong export sales utilising private label capabilities. Funds have the assets under management and advisory provided by leading international financial institutions such as: Ardian, European Bank for Reconstruction and Development, European Investment Fund and Rabobank.
Hartenberg Holding is a company focused on investments in assets in the Central European Region, primarily Czech Republic, Slovakia and Poland. Equity commitments from the founders reach 200 million EUR.
Hartenberg typically invests in companies with Enterprise Values from 40 million to 200 million EUR, which may require equity investments of 20 million to 100 million EUR. Hartenberg prefers to be a long-term investor in companies it acquires. A typical time horizon is more than five years, however, it may stay invested “forever” if the acquired company provides sufficient dividend yield and reasonable capital gains potential.
So far Hartenberg has made 2 major investments – FutureLife, the leading Czech & Slovak network of IVF and genetics clinics and Imunoglukan – a biotechnology company, leading immune-support supplement producer of Imunoglukan P4H ® on the CEE markets.
Shareholders of Hartenberg Holding are Mr. Andrej Babiš and Mr. Jozef Janov. www.hartenbergcapital.com
The seller and the management were advised by: CAG and CMS.
The purchaser was advised by: Pekao Investment Banking, Komosa Imiełowski and Deloitte.