Penta, a private equity group, has signed an agreement to acquire a 75% stake in PM Zbrojníky, a leading Slovak meat-packing plant, with plans to invest up to 2 billion SKK to revitalize its operations and target market expansion in Central Europe.

Information on the Target

PM Zbrojníky is recognized as one of the four largest meat-packing plants in Slovakia, holding an estimated 8% share of the market. The company employs 527 people and has a complex history dating back to its incorporation in 1993, originally comprising three separate entities – a slaughterhouse, a meat production facility, and a canning factory. These entities merged, creating a single organization in recent years.

The financial health of PM Zbrojníky has raised concerns, as it currently faces a significant volume of overdue liabilities that affect its working capital. Despite these challenges, the company holds a vital license to export its products to EU countries, Russia, and Switzerland, which highlights its compliance with stringent regulations, including ISO 9001/2000 certification and adherence to HACCP standards.

Industry Overview in Slovakia

The meat industry in Slovakia is characterized by a lack of consolidation and specialization among producers, resulting in a fragmented market landscape. Currently, the three leading comp