Avallon MBO FUND I sells company Ag Foods

 

Avallon MBO FUND I, the owner of AG Foods, sells all of its stock to the investment vehicle, which is co-owned by the company’s current manager.

During the six years of Avallon’s investment, the value and scale of the company’s operations have significantly increased. AG Foods reached revenues of CZK 514 million in 2009 and CZK 930 million in 2016. The operational objectives were focused not only on increasing market share and widening the range, but also on improving EBITDA margins, which from CZK 46 million in 2009 increased to CZK 90 million in 2016.

In 2013, AG Foods, with the agreement of the Avallon Fund, acquired Biogena – the producer of natural teas. Vertical concentration enabled to carry out the assumptions made prior to the investment, and improved the share of its own products in the sales structure.

Piotr Miller- Partner of Avallon MBO FUND :

“The investment in AG Foods was very important for our Fund. We wanted to show investors that we can successfully  invest not only in Poland but abroad as well. AG Foods was a perfect fit in our investment policy because it was a LMBO transaction – we bought the company from the private owner together with the managers and with the bank debt. The dynamic  development of the company was possible thanks to the motivated Management Group, whom we wish success and further productive growth. “

Orestes Żukowski,  President of Ag Foods:

‘’The company will continue to pursue development through organic growth, but  also in the nearest future it will intend to take advantage of the favorable market conditions and accelerate acquisitions within countries of CEE”.

Ag Foods (www.agfoods.eu) – AG FOODS Ltd. is a manufacturer and distributor of instant beverages, a distributor of beverage and snack machines, as well as a distributor of food products.

Avallon MBO FUND (www.Avallon.pl) – Avallon is a pioneer in the management buyout market in Poland and has been operating in this area since 2001.

The Fund’s investors are international financial institutions, such as the European Bank for Reconstruction and Development, and the funds managed by the Swiss company, Akina Partners.

The Fund is currently using the financial resources of Avallon MBO FUND II (EUR 109 m) investing in various industries, mainly in companies with turnover of 50 to 250 million zlotys.

The previous Fund, established in 2010, had a capital of EUR 50 million.

In the nearest  future Avallon plans to sell the remaining portfolio companies of the first Fund, such as: MEDORT, CEKO, Fiten.

 

Piotr Miller

Partner

Avallon MBO FUND II

Al. Kościuszki 17

90-418 Łódź

[email protected]

603 305 450

Marcin Konarski

Investment Director

Avallon MBO FUND II

Al. Kościuszki 17

90-418 Łódź

[email protected]

691 347 557

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Joanna Wiśniewska,
Marketing & PR Specjalist
ph. (042) 630 97 71, mob. 603 896 484, email: [email protected]