Kaczmarek Family and Innova Capital join forces to acquire Pfleiderer Poland
Bogdan and Elżbieta Kaczmarek together with Innova Capital, through an investment vehicle Breticontic Investments, have agreed to acquire 100% of Pfleiderer Polska in a corporate carve-out transaction from Pfleiderer Group owned by funds managed by affiliates of Strategic Value Partners. The transaction is expected to close in the first half of 2024, subject to receipt of required regulatory approvals as well as other customary closing conditions.
Source: https://innovacap.com/
December 28, 2023
Pfleiderer Polska produces premium and high-quality wood-based panels, with customer-focused service and a consistent sustainability orientation. The business has three production facilities, including Pfleiderer Grajewo, Pfleiderer MDF Grajewo and Pfleiderer Wieruszów.
Pfleiderer Group is 100% owned by funds managed by Strategic Value Partners, a global investment firm.
Miguel Kohlmann, Chairman of Pfleiderer Group, said: “After a long history as part of the Group, today’s announcement formally separates Pfleiderer’s German and Polish panels activities. We see the investment from Kaczmarek Family and Innova Capital as a strong vote of confidence in Pfleiderer Polska’s strategy and business model, the recognition of its client relationships and the quality of the management team and broader employee base. This divestment will not affect the remaining activities of the Group, which include Pfleiderer Deutschland and Silekol in Poland.”
John Brantl, Co-Head of Strategic Value Partners’ European Investment Team said: “We are pleased with the value creation at Pfleiderer Polska, which has been driven by the company’s strong and dedicated leadership and front-line staff. We thank the Pfleiderer Polska team for their excellent work and we look forward to seeing the business continue to grow under new ownership.”
Bogdan and Elżbieta Kaczmarek, who team up with Innova Capital in this transaction, are private investors and owners of Central European manufacturers of quality furniture and mattresses.
“Competition is humanity’s greatest drive. Our goal is to further enhance Pfleiderer Polska’s development within the Polish market of wood-based panels, which is central to Europe’s furniture industry. As new shareholders in the Company, we intend to invest in state-of-the-art technologies and to widen production capabilities. Our focus will be on improving efficiency and implementing green transformation projects,” commented Bogdan Kaczmarek.
The deal is fourth transaction executed by Innova Capital’s newest Innova/7 fund which has raised over €350m in the last 12 months.
Andrzej Bartos, Senior Partner at Innova Capital, highlighted: "The transaction gives us a strategic exposure to Poland’s furniture sector. This industry is a true locomotive of the Polish exports and is expected to continue its dynamic growth in the medium to long term. Pfleiderer Polska is a dynamic player in the sector, with a great leadership and remarkable growth potential. We are particularly pleased to be partnering with Bogdan and Elżbieta Kaczmarek, renowned entrepreneurs with a huge expertise in the furniture industry”.
Complimentary capabilities of the consortium members will enable the new investors in Pfleiderer Polska to benefit from its recognition in the local market and further growth opportunities, including those related to green transformation. The Company is already a frontrunner in the usage of post-consumer-recycled wood and intends to further develop this sourcing strategy.
Strategic Value Partners and Pfleiderer Group were advised by Rothschild & Co for financial matters while Kirkland& Ellis acted as a legal advisor. Greenberg Traurig acted as a legal advisor for Bogdan and Elżbieta Kaczmarek and Innova Capital.
About Pfleiderer Group
Pfleiderer is a manufacturer of premium engineered wood products, laminates and resins. The company produces premium wood and laminate products for fast-growing, high-end applications in the Western European kitchen, furniture and construction markets. Pfleiderer is also a producer of specialty and industrial resins through its Silekol division, which are used in Pfleiderer’s own products and by external customers in the panel production, packaging, construction and building materials industries. The company has operated for over 125 years with sustainability and the renewable nature of wood at its core.
About Pfleiderer Polska
Pfleiderer Polska is recognized manufacturer of a wide range of wood-based boards. The plants belonging to Pfleiderer Polska have been supplying their products continuously since 1974, being one of the foundations of the development and success of the Polish furniture industry. The company's headquarters is located in Wrocław, and three production plants - 2 in Grajewo and 1 in Wieruszów - employ approximately 1,100 employees. Pfleiderer is a supplier of solutions based on wood-based materials for the furniture, construction and interior finishing industries. The company offers comprehensive services to furniture companies, carpentry workshops, architects and designers, and construction companies. The company's products are available on the Polish market, among others: in the Pfleiderer Partner network, which includes retail outlets, in selected DIY chains and at construction materials distribution points. The company's offer includes a wide range of products in line with the latest trends in design, construction, finishing and equipment of both private and public buildings.
About Kaczmarek Group of Companies
Bogdan Kaczmarek and Elzbieta Kaczmarek are private investors and owners of Central European manufacturers of quality furniture and mattresses with over 5,000 qualified staff, 500,000 m2 of modern machine park and warehouse area with an annual revenue of over €700m.
Kaczmarek Group of Companies (the leading one of which is COM40) has implemented the philosophy of the highest quality at every stage of production, which is an important element of the development strategy. For over 20 years in upholstery, furniture and textile business Kaczmarek Group of Companies has been cooperating with numerous suppliers and customers from all over Europe. In 2009, the Group expanded its business to United States, where it established subsidiary company EBI LCC. Since 2010, the Kaczmarek Family has also been investing in the commercial real estate market and other financial interests.