Orlando swiftly exits frozen food business

The Munich-based turnaround specialist has realised its investment in a German frozen fish producer in less than 18 months.

German turnaround investor Orlando Management has sold its 60 percent stake in frozen fish producer Pickenpack Hussmann & Hahn Seafood GmbH to co-investor FAB GmbH for an undisclosed sum.

Orlando and FAB, an industrial entity backed by Icelandic investors, acquired in Pickenpack in 2003, with Orlando putting up €16 million ($21 million) for a 60 percent stake.

According to managing partner Christian Hollenberg, the sale to FAB was 'one of a number of possible exit options' that the firm considered.

The exit, ahead of the business plan target date of 2007, came about due to 'the steep increase in value from the successfully executed restructuring programme', according to Hollenberg.

Orlando’s investment in Pickenpack was made from the firm’s debut fund, which closed in April 2002 on €163 million.

According to Hollenberg, the fund is now approximately 70 percent invested and the firm is likely to return to the marketplace to raise a new fund either in 2005 or 2006.

Commenting on dealflow within the German marketplace, Hollenberg told PEO in an interview: 'We’re seeing a lot of dealflow at the moment, but the quality has gone down, mainly due to the poor state of the German economy.'

Hollenberg said that Orlando looks at approximately 180 deals per annum, of which it actively pursues around 12 and completes anywhere between zero and four transactions in a year.

One positive area of dealflow according to Hollenberg is in the area of corporate spin-offs. In August Orlando acquired global automotive supplier SaarGummi from energy group RAG Aktiengesellschaft.