CCMP, Bancroft exit CEE food service companies

The firms have sold Nowaco and Farutex in a deal valuing the companies at €250M.

Private equity firms CCMP Capital and Bancroft Private Equity have sold Nowaco and Farutex, two food service companies in Central and Eastern Europe.

The acquisition by Bidvest, an international services, trading and distribution company listed on the Johannesburg Stock Exchange, values the companies at €250 million.

Czech Republic-based food distributer Nowaco was acquired in 2005 by CCMP Capital, formerly JPMorgan Partners, and Bancroft Private Equity, a Central European private equity firm, for a total enterprise value of approximately €90 million.

Nowaco acquired and integrated their largest competitor, Garant, in 2006. The acquisition of the Gastrostella Group in 2007 saw the company enter complementary food distribution channels.

Farutex, the only food service distribution company in Poland, was also acquired by CCMP Capital and Bancroft in 2005. The company distributes frozen, chilled and dry goods to the hotel, restaurant, catering and retail sectors.

The deal is expected to close in the third quarter of 2009, subject to receipt of European Union competition clearance.

CCMP specialises in buyout and growth equity investments between $500 million and more than $3 billion in consumer, energy, healthcare infrastructure, industrial and media industries. The firm’s latest fund, CCMP Capital Investors II, closed in 2007 on $3.4 billion.

Bancroft Private Equity is a mid-market firm targeting companies with annual revenue between €30 million and €150 million in Central Eastern Europe, Greece and Turkey. The firm is currently investing from its third fund.