Enterprise Investors to take over Agros Fortuna from Pernod Ricard
Warsaw, 20 September 2002 — Polish Enterprise Fund IV, managed by the largest private equity firm in Central and Eastern Europe – Enterprise Investors – has signed an agreement to buy a 90% stake in Agros Fortuna from Agros Holding, a subsidiary of Pernod Ricard. Agros Fortuna is in number two position on the Polish juice market, leads on the jams market, and has strong brands in vegetable preserves. The value of the transaction is $27 million (including trademarks).
Enterprise Investors, which is an investor in the most dynamic Polish vegetable and fruit juice producer, Sonda, is planning to merge Agros Fortuna and Sonda in order to create a future market leader. The closing of the transaction is subject to the approvals required by Polish law.
“The Polish juice market is fragmented, with the top five manufacturers having 66% of the market. In other European countries the premium and medium segments are dominated by one or two clear leaders. The planned merger would bring the situation more in line with the European standard,” said Ryszard Wojtkowski, Enterprise Investors partner who is leading the transaction.
Agros Fortuna Sp. z o.o. was set up in June 2000 by merging three of Agros Holding’s food processing companies. Since then management has implemented a restructuring program and successfully turned the business around. Production has been consolidated, the main brands repositioned, and distribution made more effective. In 2001 Agros Fortuna’s revenues went up to PLN 482.4 million (about $120 million). The sale of Agros Fortuna to PEF IV is based on the agreement reached by the new investor and the management team. Management is guaranteed participation in the investment.
Enterprise Investors has been active in Poland and the CEE region since 1990. The four funds managed by Enterprise Investors – Polish Enterprise Fund IV, the Polish Enterprise Fund, Polish Private Equity Funds I & II, and the Polish–American Enterprise Fund – have invested over $650 million in 85 companies across all economic sectors in Poland, Romania and Slovakia.
The consumer goods sector is presently one of the priorities in the investment strategy of the funds managed by EI.