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CMS Assists Coast2Coast on Acquisition of Profi

CMS Assists Coast2Coast on Acquisition of Profi

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CMS has advised Coast2Coast, a South African private investment fund, on the acquisition of Wielkopolska Wytwornia Zywnosci Profi -- a manufacturer of pâtés and soups sold under the Profi brand. The closing of the deal remains subject to clearance by the Office of Competition and Consumer Protection.

According to CMS, "with the support of the current management board and the company’s employees, the new owner plans to accelerate Profi’s growth on the pâté and soup markets, as well as in the fast growing healthy food segments such as ready-to-eat dishes, fresh soups and lunch salads. With previous year’s revenue exceeding PLN 115 million, the company has more than 300 employees and a modern production plant in the Wielkopolskie Province."

The acquisition, CMS reports, represents "the next step in the growth of the South African fund in the CEE and Coast2Coast’s fourth deal on the Polish market. The fund has already invested in Poland in Stella Pack, a manufacturer of plastic household goods, Krosno Glass acquired in 2016, as well as an investment in Sonko in 2015, a company operating on the market of rice wafers and healthy snacks."

“This deal confirms the interest in the broadly understood food industry that has been observed for some time, in which interesting investment opportunities can still be found," said CMS Partner Marek Sawicki, who led the firm's team on the deal. "The growing activity of family offices in our part of Europe is also worth noting. Looking at the European market we can clearly see that a significant part of the transactions involve family offices, often as joint investments with private equity funds."

Sawicki was supported by CMS Senior Associate Julita Mazurkiewicz.

CMS did not reply to an inquiry about counsel for the sellers.

Editor's Note: After this article was published PwC Legal announced that it had advised Profi on the process of its acquisition by Bounty Brands.  

According to PwC Legal, Profi is the leading manufacturer of ready-to-eat foods in Poland. The company has been in the market since 1993. It offers various products in more than ten categories including: pates, canned meat, soups and ready-to-eat meals – such as instant soups or lunch salads – which is a very fast-growing segment. The company operates a manufacturing plant in Grabow nad Prosną, and it currently employs more than 300 people."

PwC provided both legal and tax consultancy services to Profi, including "preparation of comprehensive documentation for the transaction and provision of negotiation support." The firm's project team consisted of Partners Jacek Pawlowski and Beata Kiedrowicz, Senior Associate Ewa Derkacz-Smolna, and Associate Marta Gocal. Jacek Jarosz, Dorota Wolna and Mikołaj Kondej were responsible for tax consulting.

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