Information on the Target

Profi is a prominent producer of pâté and ready-to-eat meals in Poland, renowned for its leading brand that has been in operation since 1993. The company diversified its product line by launching ready-to-eat meals in 1999, which contributed significantly to its market presence. In 2022, following an investment from Accession Capital Partners (ACP), Profi undertook a brand refresh, introducing 'JemyJemy,' a modern brand recognized in the 'Golden Innovations 2024' competition. This brand encompasses a variety of ready-to-eat soups and meals, showcasing considerable potential for future growth.

Industry Overview in Poland

The food production industry in Poland has seen substantial growth over the past few decades, driven by increasing consumer demand for convenience and quality. The ready-to-eat meal segment is particularly thriving, as busy lifestyles prompt consumers to seek quick yet nutritious meal options. This trend has propelled brands like Profi to strengthen their market positions through innovation and product diversification.

Furthermore, Poland's strategic location in Europe presents a gateway to various international markets. As a result, local food producers are increasingly looking to expand their footprints beyond national borders, leveraging collaborative efforts and partnerships.

Regulatory frameworks and support from governmental bodies have also been instrumental in promoting growth within the food sector. Funds and initiatives aimed at enhancing food quality standards largely benefit companies investing in modern processes and technology.

The industry is also witnessing a shift towards sustainability, encouraging producers to adopt environmentally friendly practices. This shift is not only appealing to consumers but also aligns with global trends in food production.

The Rationale Behind the Deal

The sale of Profi to a consortium led by Custodia Capital marks a significant milestone for both parties involved. For AMC Capital IV SCSp, this exit yielded substantial returns for investors, indicating a successful investment strategy over the past five years. The strategic partnership with Custodia Capital is expected to further enhance Profi's capabilities, enabling it to capitalize on emerging opportunities in both domestic and international markets.

Moreover, the deal underscores the confidence in Profi's operational improvements and growth initiatives, which have positioned the company for continuous success.

Information About the Investor

Accession Capital Partners (ACP) is a prominent investment firm operating since 2000, focusing on the Central and Eastern European markets. The firm recently closed its fifth fund, AMC V SCA SICAV-RAIF, at €336m in June 2024, marking its largest capital commitment in 25 years. ACP has successfully raised over €1.2bn across five dedicated growth capital funds, attracting backing from esteemed institutional investors such as the European Investment Fund and the International Finance Corporation.

With offices strategically located in Vienna, Warsaw, Bucharest, Budapest, and Prague, ACP is well-positioned to unlock potential investments in the region, driving growth across various sectors, including food production.

View of Dealert

The recent transaction involving Profi is viewed favorably, as AMC Capital IV SCSp has achieved a strong return on investment. The strategic partnership with Custodia Capital is anticipated to open new avenues for Profi, allowing expansion in both national and international markets. Additionally, the operational improvements and brand enhancements implemented during ACP's investment period provide a solid foundation for future growth.

From an investment perspective, this deal reflects a promising outlook for both parties. For Profi, partnering with a well-established firm like Custodia Capital not only enhances its market position but also facilitates the adoption of innovative solutions, potentially driving operational excellence.

Moreover, ACP's record of successful exits, combined with Profi's ongoing growth trajectory in a vibrant Polish food market, supports the notion that this deal could lead to substantial long-term benefits. Overall, this investment aligns well with current market trends, particularly the increasing demand for convenience foods.

In conclusion, the sale represents a commendable investment decision with significant potential for continued growth and success in the evolving food industry.

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