www.innovacap.com

Innova Capital, a leading Central European private equity firm, has announced the sale of its entire stake in logistics operator PEKAES to sector player GEODIS of France. The transaction is subject to regulatory approvals.

PEKAES recorded excellent value progression and impressive growth since Innova’s entry into the company in late 2015. Over that period the business saw EBITDA rise by over 100% thanks to economies of scale and increasing efficiency. Key focus was placed on expansion of core groupage distribution (LTL), and on intermodal revenues, both of which doubled since Innova’s entry. Currently, PEKAES enjoys a strong market position with close to 5 million pallet places groupage network annually. Moreover, ongoing groupage volume growth at 13% (2015-2020 CAGR) confirms strong outlook for the company’s future.

“The success of PEKAES’ transformation and its bold expansion on the Polish and international logistics market - which attracted the interest of GEODIS - could not have been possible without the hard work of the Innova Capital team and the company’s management. I am very grateful for their commitment and initiative. Together, we’ve built a logistics heavyweight, and the strength and resilience of the business were manifested by how well the company is handling the Covid-19 pandemic, with negligible impact on current results.” said Krzysztof Kulig, Senior Partner at Innova Capital.

Marie-Christine Lombard, Chief Executive Officer of GEODIS, says: “This acquisition is a major step forward to consolidate GEODIS’ presence in this region, which we consider strategic for the Group’s development. PEKAES has an excellent local geographical coverage and its team is well recognized for its professionalism. Our complementary customer portfolios and our combined capabilities will allow us to offer Polish companies extensive international opportunities, while our customers will benefit from PEKAES’s expertise in Poland, which is the third largest logistics market in Europe. We are delighted to welcome all PEKAES’s employees and management into the GEODIS family.”

“Over the last five years, PEKAES has embarked on a path of dynamic development and implemented a strategic program prepared for this period. While we have successfully achieved the goals set for 2016-2020, our long-term development plan included a key target to combine the strength of our organization with an international strategic investor. GEODIS, as a global logistics provider, is an ideal match. We are proud that a leading global logistics company has given such a positive assessment of our business achievements, the organization of our companies as well as our potential and growth opportunities in the coming years.” said Maciej Bachman, CEO of PEKAES

Based in Błonie, in central Poland and close to Warsaw, PEKAES provides a comprehensive range of logistics services. The company has one of the most efficient general cargo networks in Poland, with 20 national distribution terminals. It also manages a network of 6 logistics warehouses, 1 container railway terminal, 2 railway terminals for transhipment of bulk goods, 3 sea and air forwarding offices,  2 offices which handle ferry crossings arrangements and 7 customs agencies, employing more than 1,200 staff.

The company has undergone a thorough transformation from a traditional road transportation business into a modern, competitive logistic-intermodal business, which meets the highest international standards. With large-scale operations in Poland, PEKAES is also engaged in the transportation of cargo in Europe in close cooperation with 17 proven foreign partners across over 40 countries.

During the five years of Innova Capital’s ownership, PEKAES pursued a strategy of investing heavily in the expansion of general cargo terminals, funded by high cash generation and disposals of non-core assets. Within just the last 2 years it has opened and relocated 8 distribution terminals. During 2020, on top of launching its twentieth branch in Mińsk Mazowiecki, and new terminals in Lublin and Olsztyn, PEKAES also expanded its warehousing space in Mazovia, Kielce and Kraków. PEKAES owns 100% of SPEDCONT (intermodal terminal located in Łódź) and CHEMIKALS (2 bulk goods terminals in Braniewo and Skandawa). Under Innova’s guidance the group has refocused the business model of Spedcont from containers handler to an integrated intermodal operator. It has further diversified CHEMIKALS revenue streams by launching LPG transhipment services.

Transaction advisors to the Seller included:

  • Rothschild & Co (M&A)
  • Greenberg Traurig (Legal)
  • PwC (Financial, Tax and Commercial)

 

About GEODIS

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #6 in Europe and #7 worldwide. In 2019, GEODIS accounted for over 41,000 employees globally and generated €8.2 billion in sales.

www.geodis.com

 

About PEKAES

PEKAES, a leading provider of logistics services based in Poland, is committed to providing its customers with the most efficient management of their goods throughout the entire supply chain. The company offers a comprehensive range of warehouse solutions, international and domestic groupage distribution, full truckload forwarding, sea, air and rail forwarding as well as bulk logistics and intermodal services.  PEKAES employs over 1,200 people in its 20 Polish branches, 3 railway terminals and 6 logistic warehouses.

www.pekaes.pl