Target Information

Abris Capital Partners ("Abris"), a specialist in ESG transformation, has signed a preliminary agreement to sell 100% of its shares in Graal company, a prominent producer of canned fish in Poland. This transaction is subject to approval from the Polish antimonopoly office and specifically excludes the fresh and smoked fish business of Koral, which operates under the Superfish brand and private labels. Founded by Bogusław Kowalski, Graal is headquartered in Wejherowo and manufactures a diverse array of canned and chilled fish products, alongside meat-based prepared food.

Graal is recognized for its strong portfolio of brands including Graal, Neptun, and Kuchnia Staropolska, and holds a significant position as a supplier for private labels. The company’s manufacturing and distribution capabilities enable it to export products to 38 countries across Europe, North America, Asia, Africa, and Australia, achieving sales of PLN 1.6 billion (EUR 350 million) in 2022. The acquisition will be carried out by Lisner Holding Sp. z o.o., a subsidiary of the German food conglomerate Müller Group.

Industry Overview

The Polish canned food industry has seen considerable evolution, characterized by changing consumer preferences towards convenience and healthier options. The increasing popularity of ready-to-eat meals and preserved food products has significantly bolstered the canned fish sector. Poland, renowned for its rich maritime resources, has established a robust seafood processing industry, which benefits from both domestic consumption and export opportunities.

Moreover, the rise in health awareness among consumers has prompted extensive investments in food production technology and sustainable practices across the sector. Producers are enhancing the quality of their offerings and focusing more on production methods that ensure freshness and nutritional value, fueling sector growth amidst competitive pressures.

In recent years, the significance of private labels has surged in Poland, reflecting a growing trend where retailers provide their own branded food products. This shift directly impacts established brands by intensifying competition but also presents opportunities for innovation and differentiation in product offerings.

The geopolitical landscape and challenges such as the Covid-19 pandemic have posed obstacles for food industry players, yet the Polish canned food sector has managed to demonstrate resilience. With continued shifts toward sustainability and innovation, the industry is expected to leverage these trends to foster further growth.

Rationale Behind the Deal

The rationale for Abris's decision to sell Graal is underscored by the successful growth of the company during its investment period. Abris has reported consistent increases in revenue and EBITDA over a six-year span, despite facing challenges related to the pandemic and broader geopolitical issues. The transition to Lisner Holding is intended to provide Graal with a partner that shares its vision for future growth and expansion.

The partnership between Abris and Bogusław Kowalski has proved fruitful, resulting in positions of market leadership through strategic transformations. This sale allows Abris to exit its investment while ensuring that Graal can continue on its trajectory of expansion under new ownership.

Information About the Investor

Abris Capital Partners is a private equity investor focused on creating value through active operational involvement in its portfolio companies, particularly in the ESG (Environmental, Social, and Governance) space. The firm acquired a majority stake in Graal in February 2017, marking the first public-to-private transaction where a private equity fund collaborated with a business founder to take the company off the Warsaw Stock Exchange.

With a reputation for enhancing operational efficiencies and driving strategic growth initiatives, Abris employs a hands-on approach to maximizing potential in its investments. They have implemented significant operational improvements, commercial strategies, and capital expenditure programs during their tenure with Graal.

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The divestment of Graal by Abris Capital Partners represents a strategic move that may well be favorable, considering the positive performance of the company under Abris's stewardship. Graal's robust revenue growth and export capabilities position it as a competitive player in the international canned fish market. Additionally, the strategic alignment with Lisner, known for its complementary product offerings, could enhance Graal's market presence.

However, potential challenges remain in maintaining the momentum of growth, particularly in navigating evolving consumer preferences and adapting to market trends. The success of this acquisition will largely depend on how effectively Lisner integrates Graal into its operations and leverages the unique strengths of the Graal brand.

In conclusion, while the deal signifies an important transition, its long-term implications will depend on effective strategic execution post-acquisition. The foundation laid by Abris helps create favorable conditions for Lisner, suggesting that the investment could be rewarding if managed well.

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