Zabka Polska Acquires Kefirek

Zabka Polska (“Zabka” or “the Company”), a MidEuropa portfolio company and a leading convenience and proximity supermarket store network in Poland, announced that it has entered into an agreement to acquire Kefirek, a network of over 30 stores located in Cracow, the second largest Polish city. The transaction is subject to anti-monopoly approval and is expected to close in H2 2014.

The acquisition of Kefirek follows a recent takeover by Zabka of Lux Spolem Zabrze, a chain of over 40 stores located in Zabrze and Ruda Slaska, which closed in May 2014. Over the last twelve months, the Company has acquired seven proximity supermarket and convenience store networks, including Torg, Agap, PS Food, Dobry Wybor, Jedynka. In aggregate, these targets represent over 200 stores located in medium and large Polish cities, generating c. €120m of annual sales.

Zbigniew Rekusz, Senior Partner at MidEuropa, said:

“The acquisition of Kefirek represents another step in Zabka’s consistent effort to supplement its rapid organic growth with selective acquisitions of regional leaders in the proximity supermarket and convenience space. With the support of MidEuropa, the Company is firmly positioned to execute a synergetic consolidation strategy on the back of the structural shifts in the Polish food retail sector”.

Jacek Roszyk, CEO of Zabka Polska, commented:

“Following the takeover and integration with Zabka, the acquired chains benefit from a well-recognised brand, enhanced purchasing scale as well as logistical, operational and financial support of our platform”.

With a nationwide organic roll-out of c. 450 new stores in 2013 and over 600 new locations planned in 2014, further supplemented by add-on acquisitions, Zabka is one the fastest growing food retailers in the country and a natural consolidator in its segment. The Company is currently in discussions with further targets and plans to continue its selective consolidation play in the coming years.

The execution of the add-on acquisitions by Zabka is supported by Vienna Capital Partners as the M&A advisor, Beragua Capital as the commercial consultant, EY as the financial advisor and CMS Cameron McKenna as the legal counsel. Tomasz Blicharski, Lukasz Gawlik and Lukasz Wlodarczyk support Zabka’s add-on acquisitions from MidEuropa.