Mid Europa Buys Polish Frozen Food and Juice Maker Hortex
Mid Europa Partners, a London-headquartered private equity fund focused on the growth markets of Central and Southeast Europe, has entered into an agreement to acquire the Hortex Group from Argan Capital. The transaction, terms of which were not disclosed, is subject to customary competition authority clearance, and is expected to close in the first quarter of 2018.
Warsaw-headquartered Hortex is a major producer of frozen vegetables, fruits, ready meals and juices in Poland, with a strong brand heritage dating back to 1958. It packs over 80 flavors of fruit juice and nectar, and nearly 80 different frozen food products at three plants in Ryki, Skierniewice, and Przysucha (Skrzyńsko). Turnover generated during the year ending on June 30, 2017, was reportedly over 800 million zlotys (US $220 million).
"Hortex is an iconic brand in Poland, and we believe there is potential to develop the business further through leveraging its strong foundation,” said Pawel Padusinski, partner and co-head of Mid Europa's Warsaw office. “We are excited about the prospects and the opportunity to increase our exposure to the consumer sector in the growing Polish market. We will support the company in executing strategic initiatives, including new product development, expansion into adjacent categories and selective add-on acquisitions."
Robert Knorr, co-managing partner of Mid Europa and head of its retail and consumer practice, commented: "Our investment in Hortex builds on our strong track record in investing in leading CEE consumer and retail businesses, including Zabka, Moji Brendovi, Allegro and Profi. We see great potential in Hortex as a stand-alone business, as well as its ability to leverage our networks and unique localized knowledge of the regional consumer space to drive further growth and innovation."
In addition to serving retail and foodservice customers in Poland, Hortex exports products to Russia, Slovakia, Ukraine, Latvia, Estonia, Lithuania, and Belarus, as well as the UK, Ireland, USA, and Canada.
For many years now Russia has been the biggest market for Hortex exports. Business there is managed by the company’s Ortika Frozen Foods subsidiary.