Creating a leading food manufacturing player in Europe.
Investor: Resource Partners
Industry: Food manufacturing
Year of investment: 2011
Year of exit: 2015
Company
When acquired by Resource Partners, Good Food was one of the local leaders in manufacturing rice cakes in Poland. Since then, the Company has become a clear leader in the Polish market and a significant player in the European Union. The Company operates two adjacent production plants with the capacity of up to 100m packs of versatile rice cakes products annually. Following a strategic shift towards private labeling more than two thirds of revenues is generated on non-Good Food branded sales.
Growth
Revenues (PLNm) EBITDA
Main objectives of the funding
- Support the Management in buying out the Company from the owners.
- Shifting the strategy to explore the growth prospective of private label manufacturing.
- Continue production efficiency improvements.
- Provide financing for the ambitious Capital Expenditure program.
- Support growth in export markets in order to limit the dependence on key clients.
- Increasing the efficiency of the domestic distribution model.
Achievements of the company
- The production capacity more than doubled from ca. 45m packs in 2011 to 100m packs in 2015.
- Significant reduction of production losses and cost per pack was achieved by continuous operational improvements (-16% of the original figure).
- Export sales grew at CAGR’11-’15 exceeding 25%.
>25%
export sales growth
>2x
production capacity growth
Value added by PE/VC fund
- Supported the Company growth from PLN56m revenues and PLN11.7m EBITDA in 2011 to PLN86m in revenues and PLN18.1m EBITDA.
- Refocused the strategy on rice waffles and private label manufacturing and pushed for export sales turning Good Food into a Europe’s Top3 player.
- Expanded the product portfolio by introducing new flavoring technologies, grain mixes and convenience packaging.
- Introduced ESOP program to align the interest of the key managers with the Company.