Mid Europa pips global funds in Profi deal

The regional player triumphed in an auction involving KKR and BC Partners.

Mid Europa Partners has sealed the largest private equity deal in Romanian history, buying supermarket chain Profi.

The Central and Eastern Europe-focused firm triumphed in an auction process that saw it pitted against global players KKR and BC Partners, as well as some strategic bidders, according to a source close to the situation.

Mid Europa acquired Profi from fellow regional private equity stalwart Enterprise Investors for €533 million, according to a statement from the seller. Enterprise Investors acquired the business from its founder in 2010 for €66 million and the following year injected a further €10 million. Within the last two years the company has added 100 new stores to bring the total to around 500. The company expects revenues of around €800 million in 2016.

Mid Europa is deploying its €800 million fourth fund, which it closed in 2014. Alongside the fund, there is a pre-allocated co-investment vehicle of €650 million, some of which is understood to have been deployed into the Profi transaction.

This marks the second sizeable deal for Mid Europa in the last two months. In mid-October it clubbed together with Permira and Cinven to acquire the Allegro Group, the largest online marketplace and non-food shopping destination in Poland, for $3.25 billion.

BC Partners declined to comment. KKR was unavailable.