Middle-market private equity firm Highlander Partners has acquired 60 per cent majority stake in QFG, a Polish convenience food producer. QFG will use the proceeds to invest in increasing its production capacity.
Following Highlander Partners’ acquisition, the founders of QFG have retained ownership of a 40 per cent stake. The capital increase will be invested in the company’s production ability, including the development of QFG’s third plant in central Poland, and an additional investment in innovative technologies for the production process.
"We are amazed by QFG’s expansion up to date. It stems from the company's unique openness to customer needs. We applaud the innovative approach to business of the founders, who follow best practice and the latest technologies in the global food market, and constantly introduce changes in the company. We have just become partners with a well-developed and competitive company, which requires capital and an experienced partner to grow further,” says Maciej Rybicki, Operating Partner at Highlander Partners leading the investment.
QFG produces high-quality meat products in the convenience food segment. These include poultry, beef, pork and mutton based ready to eat and pre-cooked foodstuffs. QFG customers are retail resellers, the HoReCa segment and retail customers in Poland (20% of sales), as well as other European countries (80% of sales). Thanks to the unique offer and the quality of the food, the demand for QFG products continues to grow, and this is reflected in the dynamic growth of the company. Revenues last year amounted to PLN117 million (USD29 million/EUR27 million) and, according to forecasts, will increase to nearly PLN 200 million (USD50 million/EUR47 million) this year.
"Customers in Europe, Poland included, expect us to produce more. The recent investment from Highlander Partners will help QFG to significantly increase our production capacity and satisfy this demand. With the transaction closed today, apart from the new capital needed at this stage, we have gained a trusted partner, with whom we will build a value adding strategy for the business we founded. The convenience food market in Poland and the European Union has been growing at a single-digit pace. Our realistic medium term goal is the double-digit increase of our company,” says Jaroslaw Krzyzanowski, the founder and president of QFG.
