Enterprise Investors creates the number one juice producer in Poland
Warsaw, 17 January 2003 — Today Enterprise Investors – the largest private equity firm in Poland and Central and Eastern Europe – finalized its purchase of 90% of Agros Fortuna. The shares of Agros Fortuna were transferred to Polish Enterprise Fund IV, which is managed by Enterprise Investors, in accordance with the agreement signed with Pernod Ricard in September 2002 and after obtaining the necessary approvals. The value of the transaction is PLN 110.6 million.
Having finalized this deal Enterprise Investors now aims to merge the company with Sonda, in which EI’s fund is a minority shareholder. The merged company will be Poland’s largest fruit juice producer, with a 24.5% market share. The merger will be subject to approval by the Polish Anti-Monopoly Office.
The transaction is the largest ever completed by Enterprise Investors. It also confirms EI’s approach, which is based on close cooperation with management teams. By initiating consolidation of the market, EI takes on a role that is usually the preserve of industry players; this is possible thanks to the skills and experience of its investment team.
“The food processing industry, especially fruit and vegetable processing, has a good chance of becoming a Polish specialty in the EU. If we are not yet taking full advantage of this opportunity it is because of the industry’s fragmentation. In future there will be room for only a few leading players in each of the market segments,” said Ryszard Wojtkowski, an EI partner who is responsible for investments in the consumer goods sector.
Agros Fortuna Sp. z o.o. was set up in 2000 by merging three of Agros Holding’s fruit and vegetable processing companies. Management successfully turned the business around by implementing a radical restructuring program. At the same time it repositioned the main brands and improved the effectiveness of distribution.