Avallon is shopping again
Avallon MBO private equity fund from Łódź has acquired a stake in Hortimex. This family business, operating since 1988, serves as a platform for global producers of advanced food raw material, thanks to which they meet potential customers - food producers in Poland. The newest transaction made as part of Avallon MBO Fund III has been carried out following the M&A model - the fund acquired the entire package of shares from the founder of the company, Tomasz Kowalewski, as well as some shares of Mateusz Kowalewski and Hanna Kowalewska, who will still remain the members of the company's management board after the transaction.
The buyout of the enterprise itself has not been the only purpose of the fund - the idea behind the transaction is the so-called buy & build, i.e. providing financing for further acquisitions and dynamic development of the company, both on the Polish market and in the CEE region. - As part of the adopted M&A strategy, we are establishing acquisitions in the areas of distribution, complementing the current operating activities of Hortimex, both in terms of foreign expansion, new categories of food products, and other industries served - explains Marcin Konarski, partner at Avallon MBO. - Mateusz Kowalewski is a great manager who has extensive knowledge of the food ingredients market. Thanks to his experience, we will be able to consistently implement the prepared development strategy.
Hortimex is a specialized company supporting producers of advanced food ingredients and food producers. - We offer support for the sale and distribution of their products to food companies on the Polish market, as well as care for the development and strengthening of business relations with producers. In turn, we provide food producers with professional guidance in their development of unique recipes, which are in line with the latest global trends, as well as we ensure the supply of functional food raw materials - says Mateusz Kowalewski, CEO of Hortimex.- It is crucial that these ingredients, apart from high quality, also provide functionalities sought by customers . This requires an appropriate know-how approach, and we have been developing it for almost 30 years now. It is this very element that allows food producers to achieve advantage over their competitors, he adds.
The adopted strategy also assumes an investment in the development of the production of own raw products in areas with a strong market potential and limited supply sources. - We mean, first of all, products that follow the latest pro-health market trends, as well as the increasing demand for specialized and functional ingredients, with an emphasis on natural products, proteins of plant origin and vegetarian alternatives to meat, or healthy sugar - lists Mateusz Kowalewski.
Hortimex is one of the independent suppliers of specialty food ingredients. Globally, the market for the distribution of specialized food raw products also dedicated to other industries is worth approximately EUR 117 billion (2019). Part of it is driven by a global market for the consumption of advanced ingredients worth around EUR 669 billion (2019), the growing importance of innovation from R&D, and the increasing share of distributors in the sector's sales. It is estimated that Western, Central and Eastern Europe are responsible for approximately 19 percent of the entire world production (approx. EUR 22 billion).
After the purchase of Hortimex, the portfolio of the Avallon fund will include seven other companies: Wosana - representing the food industry, Stangl Technik – a firm providing installation services, EDC Expert - a marketing company, Marketplanet- a purchasing platform, Novo Tech dealing in polymer processing, Clovin - a cleaning products production, and Norlys - a manufacturer of premium class lamps and outdoor lighting. At the same time, Avallon is actively looking for further investments. The Avallon MBO III fund has raised EUR 137 million for this purpose.