Bidvest eyes €250m European buy
4 August 2009
South African diversified industrial company Bidvest has entered into an agreement to acquire the Nowaco Group, a foodservice company with operations in the Czech Republic, Slovakia and Poland, from private equity investors for €250-million (about R2.8-billion).
The Nowaco Group is the number one delivered wholesaler to the foodservice and independent retail markets in Central and Eastern Europe. It consists of Nowaco, which focuses on the Czech Republic and Slovakia, and Farutex, which serves the Polish market.
Nowaco's delivered wholesale business is supplemented by two consumer brands, Nowaco and Prima, with category leadership in frozen food and ice cream.
Its customers operate across the commercial (including hotels, restaurants and cafeterias) and institutional (including school, business and public catering) foodservice sectors, as well as in the independent retail sector.
Strategic market
"The acquisition of the Nowaco Group will complement the existing international foodservice business of Bidvest in the United Kingdom, Europe, Australia, New Zealand and Asia," Bidvest said in a statement this week.
"Central and Eastern Europe represents a strategic market with growth opportunities."
According to the Johannesburg-based company, a presence in Eastern Europe will allow it to continue expanding its international interests in the foodservice industry, with the objective of developing a leading global foodservice business.
"The acquisition provides a unique opportunity to acquire market-leading Central and Eastern European foodservice businesses, creating potential customer and purchasing synergies."
Significant contribution
Bidvest said key attractions to the acquiring the foreign company included large markets with substantial growth potential, broad leadership positions in fragmented markets, a resilient business model, an excellent financial track record and experienced and proven local management teams.
"Bidvest believes that the Nowaco Group as part of the Bidvest foodservices division, with Bidvest's management focus, can be expected to contribute significantly to Bidvest Group performance over time."
The acquisition is subject to the receipt of European Union competition clearance.
SAinfo reporter
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