PE Firms Selling Nowaco and Farutex for €250 Million

CCMP Capital and Bancroft Private Equity have agreed to sell Nowaco and Farutex to South Africa-based Bidvest, for a total of €250 million. Both companies are European delivered wholesalers for the foodservice and indipendent retail markets. Nowaco is focused on the Czech Republic and Slovakia while Farutex serves the Polish market.

PRESS RELEASE
Bidvest, the international services, trading and distribution company listed on the Johannesburg Stock Exchange, has agreed to acquire 100% of the issued share capital of Nowaco Czech Republic s.r.o. (“Nowaco”) and 100% of the issued share capital of Farutex Sp. z.o.o. (“Farutex”) from funds affiliated with J.P. Morgan Partners, LLC, which is advised by CCMP Capital Advisors, LLC (“CCMP”), and from Bancroft Private Equity LLP (“Bancroft”). The Nowaco Group is the number one delivered wholesaler to the foodservice and independent retail markets in Central and Eastern Europe. Nowaco focuses on the Czech Republic and Slovakia while Farutex serves the Polish market. The transaction values the two businesses in aggregate at €250 million.

Tom Walker, Senior Member of CCMP Capital Advisors (UK), LLP and Fred Martin, Managing Partner of Bancroft, jointly commented, “We are very pleased with this investment. The management teams at Nowaco and Farutex have been tremendous partners and have continually exceeded our expectations. Both businesses have expanded impressively over the past four years, a combination of organic and acquired growth, to establish the preeminent foodservice distribution platform in a region with substantial long-term growth opportunities. We are confident in their continued success and we wish management and the new owners the very best in the future.”

Bohumil Volf, General Manager of Nowaco, remarked, “CCMP and Bancroft have been incredibly supportive partners of Nowaco; during their ownership tenure, we have accelerated the development of our Czech and Slovak foodservice distribution businesses, grown our brand presence and entered complementary food distribution channels with the acquisition of the Gastrostella Group in 2007, all of which have contributed to our strong financial performance. We look forward to the continued successful execution of our growth strategy under Bidvest’s ownership.”

Pawel Swiechowicz, Chief Financial, Logistics and IT Director of Farutex, added, “Poland, with its large and rapidly developing foodservice market, presents a highly attractive opportunity; with the support of CCMP and Bancroft we have grown into the leading nationwide foodservice distribution platform, and are now well-established to capitalize on this opportunity under the new owner’s leadership.”

The transaction is subject to receipt of European Union competition clearance and is expected to close in the third quarter of 2009.

CCMP and Bancroft were advised by J.P. Morgan plc on financial matters and by Weil, Gotshal & Manges on legal matters. Bidvest was advised by HSBC on financial matters and by Baker & McKenzie on legal matters. Iva Zothova acted as legal adviser to Nowaco management.

About CCMP Capital

CCMP Capital Advisors, LLC, is a leading global private equity firm specializing in buyouts and growth equity investments in companies ranging from $500 million to more than $3 billion in size. CCMP Capital focuses on five primary industries: Consumer, Retail and Services; Energy; Healthcare Infrastructure; Industrial; and Media. Selected investments under management include: Aramark Corporation, Edwards Limited, Generac Power Systems, Grupo Corporativo ONO, Legacy Hospital Partners, Quiznos Sub and Warner Chilcott. CCMP Capital’s founders have invested over $12 billion since 1984. CCMP Capital’s latest fund, CCMP Capital Investors II, L.P., closed in September 2007 with commitments of $3.4 billion.

CCMP Capital has offices in New York, Houston and London. Through active management, its global resources and its powerful value creation model, CCMP Capital has established a reputation as a world-class investment partner.

For more information, please visit www.ccmpcapital.com.

CCMP Capital is a registered investment adviser with the Securities and Exchange Commission.

About Bancroft Private Equity

Bancroft Private Equity is leading midmarket private equity fund investing in Central Eastern Europe, Greece and Turkey. Bancroft launched its first fund in 1996 and now is investing from it’s third fund. With offices in Prague, Budapest, Sofia, Athens, Istanbul and London, Bancroft’s investment strategy is focused on growth and high cash generative companies with annual revenue of 30-150 million euros.