Innova Capital sells stake in PEKAES to GEODIS

Innova Capital, a Central European private equity firm, has sold its entire stake in logistics operator PEKAES to sector player GEODIS of France. The transaction is subject to regulatory approvals.

PEKAES recorded excellent value progression and impressive growth since Innova’s entry into the company in late 2015. Over that period the business saw EBITDA rise by over 100 per cent thanks to economies of scale and increasing efficiency. Key focus was placed on expansion of core groupage distribution (LTL), and on intermodal revenues, both of which doubled since Innova’s entry. Currently, PEKAES enjoys a strong market position with close to 5 million pallet places groupage network annually. Moreover, ongoing groupage volume growth at 13 per cent (2015-2020 CAGR) confirms strong outlook for the company’s future.

“The success of PEKAES’ transformation and its bold expansion on the Polish and international logistics market - which attracted the interest of GEODIS - could not have been possible without the hard work of the Innova Capital team and the company’s management. I am very grateful for their commitment and initiative. Together, we’ve built a logistics heavyweight, and the strength and resilience of the business were manifested by how well the company is handling the Covid-19 pandemic, with negligible impact on current results,” says Krzysztof Kulig, Senior Partner at Innova Capital.

Marie-Christine Lombard, Chief Executive Officer of GEODIS, says: “This acquisition is a major step forward to consolidate GEODIS’ presence in this region, which we consider strategic for the Group’s development. PEKAES has an excellent local geographical coverage and its team is well recognized for its professionalism. Our complementary customer portfolios and our combined capabilities will allow us to offer Polish companies extensive international opportunities, while our customers will benefit from PEKAES’s expertise in Poland, which is the third largest logistics market in Europe. We are delighted to welcome all PEKAES’s employees and management into the GEODIS family.”

“Over the last five years, PEKAES has embarked on a path of dynamic development and implemented a strategic program prepared for this period. While we have successfully achieved the goals set for 2016-2020, our long-term development plan included a key target to combine the strength of our organisation with an international strategic investor. GEODIS, as a global logistics provider, is an ideal match. We are proud that a leading global logistics company has given such a positive assessment of our business achievements, the organisation of our companies as well as our potential and growth opportunities in the coming years," says Maciej Bachman, CEO of PEKAES.

Based in Błonie, in central Poland and close to Warsaw, PEKAES provides a comprehensive range of logistics services. The company has one of the most efficient general cargo networks in Poland, with 20 national distribution terminals. It also manages a network of six logistics warehouses, one container railway terminal, two railway terminals for transhipment of bulk goods, three sea and air forwarding offices, 2 offices which handle ferry crossings arrangements and seven customs agencies, employing more than 1,200 staff.

The company has undergone a thorough transformation from a traditional road transportation business into a modern, competitive logistic-intermodal business, which meets the highest international standards. With large-scale operations in Poland, PEKAES is also engaged in the transportation of cargo in Europe in close cooperation with 17 proven foreign partners across over 40 countries.