The Board of Directors of Massimo Zanetti Beverage Group (MZBG) has approved the acquisition from two private equity companies, MCH Iberian Capital Fund II, managed by MCH PE, and Portuguese Fund Explorer I, managed by Explorer Investments, of their 100 per cent shareholding in Nutricafés, one of the main players in the Portuguese coffee market. The deal is for a total consideration of € 74.5 million in terms of enterprise value and will be financed through new credit lines provided by the banking system.
With this acquisition MZBG will further reinforce its position in Portugal, where the group is already operating through its subsidiary Segafredo Zanetti Portugal SA with the brand Segafredo Zanetti, reaching a total market share of 14 per cent. In addition, following the deal, MZBG expects to realize synergies in Portugal as well as in Spain where the new combined organization will serve the markets in a more competitive and effective manner. MZBG will acquire a production plant in Portugal as a result of the deal, which will efficiently provide products to both Portugal and Spanish markets.
Nutricafés fits with the group’s strategy which aims to further develop in the food service channel, as well as in the single serve segment, also through the acquisition of historical brands, with a strong tradition and capacity for growth in their reference’s market. The deal is due to close by mid-September 2016.
Nutricafés is the third largest operator in the Portuguese coffee market with well known brands and a 22 per cent market share in Lisbon and around 9 per cent across Portugal. In fiscal year 2015 Nutricafés had revenues of €34.1 million; gross profit reached €19.5 million, with a 57.2 per cent gross margin. EBITDA was €8.7 million with a strong EBITDA margin of 25.5 per cent. The company’s net financial position was €36.0 million.
Massimo Zanetti, President and CEO of Massimo Zanetti Beverage Group, said of the deal: “I am very proud of the acquisition of these two historic brands. Nicola Cafés is one of the oldest and most prestigious Portuguese coffee brands dating right back to 1779. Both brands have a strong presence and awareness among consumers and with Nutricafés we will become the third largest operator in Portugal. Thanks to this acquisition, we strengthen our presence not only in Portugal but in the whole Iberian Peninsula as it allows us to enter as main actor into the Spanish market.”
Marco Lebre, Founding Partner of Explorer Investments, said: “We chose MZB Group among several bidders and are convinced that the group perfectly fits with Nutricafés vision and will be able to secure its future.”