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Case studies

NOWEL– transforming a regional bakery into a leading bake-off producer in Central Europe

Company
NOWEL
PE/VC investor
Fund managed by CVI
Investment period
2020 - 2024

8.1

Return

(CoC)

6

Sales growth

12.5

EBITDA growth

6.4

Production capacity growth

NOWEL’s history dates back over 100 years, when the Nowakowski family established their first bakery in Leoncin (near Legionowo). The company currently operates two state-of-the-art production plants in Legionowo and Nowy Modlin and is owned by the Zajezierski family.

In 2016, a fund managed by CVI invested PLN 30m of growth capital in Nowel in return for a minority stake. The investment enabled the company to complete an ambitious capex programme, supporting rapid expansion. During the holding period, the company invested more than PLN 800m in organic growth, financed through retained earnings and bank debt, significantly increasing its scale. CVI actively supported NOWEL in strategy development, product innovation (including artisan bread and hot dog rolls) and improvements in reporting and corporate governance.

As a result, revenue rose more than sixfold and EBITDA twelvefold. Nowel consistently outperformed its peers in both revenue growth and EBITDA margin. Today, it is one of the leading manufacturers of bake-off products in Central Europe.

The fund exited the company in 2024 through a buyout by the majority shareholders.

Main PE/VC
funding objectives

  • Financing of growth and capex programme
  • Strengthening of the balance sheet through equity injection
  • Strategic advisory support
  • Improvement of reporting and controlling functions

What changed in the company after the PE/VC investment

  • Production capacity increased sixfold, from 25k tonnes p.a. to approx. 160k tonnes p.a.
  • Opening of a second production plant in 2024
  • Workforce increased from 380 in 2016 to 860 in 2024
  • Export share rose to almost 30%
  • Revenue increased sixfold, from PLN 120m (2016) to PLN 718m (2024)
  • EBITDA increased twelvefold, from PLN 13m to almost PLN 162m
  • EBITDA margin rose from over 10% to above 20%
  • Diversification of product portfolio and client base
  • Optimization of financing structure
  • Modernization of internal controlling functions and data analytics

ESG-related initiatives and accomplishments

  • Women account for two-thirds of the management board
  • Female employees make up 51% of the total workforce
  • Production of clean-label products
  • Use of flour sourced partially from regenerative wheat (reduced carbon footprint)

In mid-2016, CVI provided financing through a capital increase, enabling us to complete our capex programme and expand production capacity. Since then, we have diversified our customer base, increased exports to nearly 30% of revenue and expanded into 30 markets. We also introduced advanced analytics and broadened our product portfolio, which now ranges from traditional rolls and sourdough breads to buns and snacks. Our new production plant will support further expansion in Poland and across the region.

Michał Zajezierski

Vice CEO of Nowel