Belgium-based produce group Greenyard Foods has acquired Polish mushroom substrate supplier Mykogen from private-equity firm Abris Capital Partners.
Greenyard has paid Abris EUR93m (US$104m) for Mykogen, a deal it described as a “transformational transaction” it believes will strengthen its position in the mushroom market.
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Substrate is the “key and highest value-added raw material” used in mushroom production and Mykogen’s growing media are “essential in producing high-quality mushrooms” in the growing production markets of Central and Eastern Europe, Greenyard said.
The majority of Mykogen’s operations are in Poland, Europe’s largest mushroom producer. Mykogen has four production facilities, located in Poland and Ukraine.
Announcing the deal, Greenyard said the addition of Mykogen “enhances its direct connection to the grower” by making Greenyard a supplier, increases its access to mushrooms and “strengthens” Greenyard’s position in the mushroom sector.
The company added the agreement will create opportunities for cross-divisional synergies with the fresh, frozen, prepared and horticulture divisions within Greenyard. The deal also raises the profile of Greenyard’s horticulture business “positioning it for further strategic development”.
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By GlobalDataCEO Marleen Vaesen said: “The addition of Mykogen fits perfectly with our objective to have a vertical chain derived from Greenyard’s ‘fork-to-field’ strategy, whereby we ensure consumers can enjoy fresh quality products. Together with Mykogen, our horticulture business takes an important step forward within our group with multiple opportunities for future synergies.”
In 2016, Mykogen generated EBITDA of EUR13.5m, implying a trailing purchase price multiple of 6.9 times EV/EBITDA. During the last four years, Mykogen’s sales growth has exceeded 8% per annum. Its sales are expected to “approach” EUR40m in 2017, with EBITDA margins above 35%, Greenyard added.
Greenyard also revealed it intends to sell off some “non-core” interests in its fresh business. Without offering further detail, the company said these divestments are estimated to provide cash proceeds of approximately EUR25m with a “limited impact” on EBITDA.
