Cookies and Cream in the Balkans!
KRyS Global is pleased to announce it has signed a binding agreement for the sale of Serbia’s largest dairy Imlek and biscuit and confectionery maker Bambi* and prestigious mineral water and non-alcoholic beverage company, Knjaz Milos. In October 2012 Messrs Krys and Greenwood of KRyS Global were appointed Trustees of Value Discovery Partners LP (“VDP”), following the expiration of the General Partner’s mandate and a dispute arising on the way forward between the Limited Partners and General Partner. At the time of KRyS Global’s appointment, the assets had already been through several sales processes spanning as far back as 2008 but no sale had been achieved. Group indebtedness was in excess of US$250m and several lenders had begun enforcement proceedings following repeated failure to exit and sell the underlying assets.
Following its appointment, KRyS Global shortly addressed the liquidity concerns and took steps to stabilize the management situation and confidence of prospective purchasers. This included dealing with various freezing injunctions and other legal efforts taken by third parties to seize the assets. Efforts continued during its tenure to restructure the debt and overall performance of the group improved resulting in combined revenues in the region of EUR 400m in 2014.
KRyS Global also took an active role in the sale process and was involved in discussions with several major Private Equity funds as well as strategic investors with an interest in the region and the dairy, confectionary and beverages industries. During this time KRyS Global and its advisors assisted several parties in conducting extensive due diligence in respect of the assets.
Last week KRyS Global signed a binding agreement that will see Mid Europa Partners (“MEP”) acquire the stake held by VDP in the well-known Serbian food conglomerate. The sale will result in significantly higher returns to VDP than had been anticipated at the time KRyS Global was appointed.
John Greenwood, one of the Trustees, said “we are delighted to have reached this milestone for these companies and wish MEP and the companies every success in their next phase of ownership.”
John Skelton, Senior Manager at KRyS Global commented that the “level of interest in the assets was significant and demonstrates that there are substantial funds available for investment into the Balkans. We look forward to observing the continued growth of these companies under new ownership with MEP”.
The agreement is subject to customary conditions and closing is expected to take place in the first half of 2015. KRyS Global will continue to wind down the fund and currently awaits a hearing of the Privy Council in respect of the entitlement of the General Partner to Carried Interest.
*[BELEX:IMLK], [BELEX:BMBI]
For more information contact Marketing@KRyS-Global.com