German Equity Partners III (GEP III), the private equity fund managed by ECM Equity Capital Management, is selling its majority shareholding in KADI, a Swiss producer of frozen food, to the Munich-based private equity company Paragon Partners.
GEP III acquired a majority interest in KADI in July 2008 in the context of an ownership succession. The management team will maintain a significant equity interest in the company and is reinvesting as part of this transaction.
Together with Paragon Partners KADI intends to continue its growth strategy. The parties have agreed not to disclose the purchase price or other details of the transaction.
KADI, established in 1951, has been a leading brand in the Swiss food service sector for decades. Today KADI produces primarily high quality potato based frozen food products for the Swiss restaurant sector as well as for food retailers. In 2012, KADI generated sales of more than CHF66m with approximately 180 employees. As part of its growth strategy KADI has expanded its product portfolio significantly. This included the add-on acquisition of the “fish snack” business segment, which was completed one year after the acquisition by GEP III.
Patrick Sievi, chief executive of KADI, says: “Based on its innovative and high quality products and the financial and strategic support of our majority shareholder, KADI was able to successfully expand its leading market position in the Swiss foodservice sector. The achievements speak for themselves: Over the past five years we have grown operating results (EBITA) by more than 50 per cent and have made significant investments into our production as well as productivity improvements.”
Carsten Schemmel, director at ECM Equity Capital Management, says: “KADI’s competent and experienced management has very successfully converted the demand in the foodservice sector into growth drivers for the company based on product innovations and complementary acquisitions. KADI’s management will continue the successful growth strategy with its new majority shareholder. We are confident that KADI will maintain its high popularity with its current and future customers.”
