German Equity Partners III, the private equity fund managed by ECM Equity Capital Management, is selling its majority shareholding in KADI AG, Langenthal, a Swiss producer of frozen food, to the Munich based private equity company Paragon Partners. The parties have agreed not to disclose the purchase price or other details of the transaction.
German Equity Partners III (GEP III), the private equity fund managed by ECM Equity Capital Management (ECM), is selling its majority shareholding in KADI AG (KADI), Langenthal, a leading Swiss producer of frozen food, to the Munich based private equity company Paragon Partners. GEP III acquired a majority interest in KADI in July 2008 in the context of an ownership succession. The management team will maintain a significant equity interest in the company and is reinvesting as part of this transaction. Together with Paragon Partners KADI intends to continue its successful growth strategy. The parties have agreed not to disclose the purchase price or other details of the transaction.
KADI, established in 1951, has been a leading brand in the Swiss food service sector for decades. Today KADI produces primarily high quality potato based frozen food products for the Swiss restaurant sector as well as for food retailers. In 2012, KADI generated sales of more than CHF 66 million with approximately 180 employees. As part of its growth strategy KADI has expanded its product portfolio significantly. This included the add-on acquisition of the “fish snack” business segment, which was completed one year after the acquisition by GEP III. Driven by further investments into the production and productivity improvements, KADI has over the past five years achieved significant increases in its operating results as well as above market average sales growth.
Patrick Sievi, CEO of KADI, said: “Based on its innovative and high quality products and the financial and strategic support of our majority shareholder, KADI was able to successfully expand its leading market position in the Swiss foodservice sector. The achievements speak for themselves: Over the past five years we have grown operating results (EBITA) by more than 50 percent and have made significant investments into our production as well as productivity improvements.”
Carsten Schemmel, Director at ECM Equity Capital Management GmbH, stated: “KADI’s competent and experienced management has very successfully converted the demand in the foodservice sector into growth drivers for the Company based on product innovations and complementary acquisitions. KADI’s management will continue the successful growth strategy with its new majority shareholder. We are confident that KADI will maintain its high popularity with its current and future customers.”
GEP III was advised on the transaction by the investment bank Leonardo & Co. (M&A / Stephan Brücher, Fabian Denneborg), CMS von Erlach Henrici (Legal / Oliver Blum) and Ernst & Young (Financial and Tax / Chris Tattersall, Barbara Hicker, Dr. Georg Lutz, Dr. Gernot Zitter). Carsten Schemmel and Florian Kähler were responsible for the transaction at ECM.
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ECM Equity Capital Management GmbH (“ECM”)
An independent private equity firm, ECM is headquartered in Frankfurt am Main, Germany. ECM served or serves as the manager of/advisor to respectively the private equity funds German Equity Partners I-IV with aggregate capital under management in excess of EUR 650 million. The investment focus is on mid-sized companies in the manufacturing and service sectors in addition to the wholesale and retailing industries. Preferred acquisition targets are companies with revenues of EUR 20 million to EUR 250 million. The funds typically structure their investments as management buyouts. Investment opportunities arise from ownership succession situations with privately held companies and from corporate divestitures.
Further information at: www.ecm-pe.de
Established in 1951 and headquartered in Langenthal (Switzerland) KADI produces high quality potato based frozen food products for the Swiss foodservice sector and food retailers. KADI’s growth strategy is based on innovation and product quality. The product portfolio comprises a broad selection of high quality potato specialties and snacks. With its award “The Golden Chef by KADI” the Company supports established as well as prospective gourmet chefs.
Further information at: www.kadi.ch
On behalf of ECM
Charles Barker Corporate Communication GmbH
Kornelia Spodzieja, phone: +49 (69) 794090-40, Kornelia.Spodzieja@charlesbarker.de
Tobias Eberle, phone: +49 (69) 794090-24, Tobias.Eberle@charlesbarker.de