Mid Europa Partners Acquires Danube Foods Group, a leading consumer good company

Mid Europa Partners, the largest private equity firm focused on Central Europe and Turkey, announced that it has signed a binding agreement to acquire a controlling interest in Danube Foods Group BV and Clates Holding BV (together, “Danube Foods Group” or the “Group”). The transaction value has not been announced and the transaction is subject to customary closing conditions, and is expected to be completed in H1 2015.

With revenues of more than €400 million in 2014, the Group represents the leading branded FMCG platform in the former Yugoslavia (the “Region”). Its subsidiaries include Imlek (BELEX: IMLK) and Mlekara Subotica, which on a combined basis represent the largest independent dairy business in the Region; Bambi (BELEX: BMBI), the leading Serbian confectionery producer; and Knjaz Miloš, the leading Serbian producer of mineral water and other non-alcoholic beverages.

Robert Knorr, Senior Partner of Mid Europa who leads Mid Europa’s consumer investments commented: “The acquisition of Danube Foods Group underscores Mid Europa’s continued commitment to investing in strong businesses in the Region, following our highly successful investment in SBB/Telemach. The Group represents an excellent fit with Mid Europa’s investment strategy – it has a unique portfolio of iconic brands with Regional reach, which we are excited to support through capital investment or through organic and acquisitive growth. Mid Europa has an excellent track record of building true regional champions out of national leaders, and I am confident that our investment in the Group will be equally successful.”

Andrej Babache, Director of Mid Europa, who led the execution of the transaction added: “The Danube Foods Group owns some of the Region’s most recognized consumer brands. This is a strong platform with significant regional expansion potential – we look forward to leveraging our capital, resources and experience towards the fulfilling of this potential, as we have successfully done on our prior investments in the Region.”

Slobodan Petrović, the CEO of the Group’s dairy business, commented: “We are pleased to welcome Mid Europa as a strong and highly reputable investor to the Group. We look forward to working with the Mid Europa team to lead the Group through the next stage of its development. We believe that Mid Europa’s regional experience and focus on best practices will facilitate the Group’s continued success.”

The transaction was executed by Andrej Babache, Ratko Jovic, Berke Biricik and Can Karapence from Mid Europa, with White & Case as legal adviser and Unicredit as financial adviser.

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