KPMG Deal Advisory acted as the exclusive M&A advisor to the shareholder of CBA Slovakia on disposing 100% of shares to private equity fund Polish Enterprise Fund VII (PEF VII) managed by Enterprise Investors.
- Exit of the shareholder is the final stage of KPMG’s long-lasting advisory project in relation to the company.
- This transaction represents entry of Enterprise Investors into the Slovak food retail.
- Enterprise Investors will provide additional EUR 16 million funding to deleverage the business and finance expansion of the network.
- Deal represents landmark transaction in the Slovak food retail market. Further consolidation of the sector could be expected.
Details of the transaction
CBA Slovakia
CBA Slovakia, a company established by Marián Šufliarsky and further developed by his son Marián Šufliarsky, Jr., is one of the largest independently owned food retailers in Slovakia. CBA Slovakia operates a network of 310 convenience food stores and proximity supermarkets spread across the western and central part of Slovakia. A large number of stores underwent refurbishment to modern standards over the past years and a new supermarket format was developed. In 2016 the company’s revenues reached EUR 130 million.
Enterprise Investors
Enterprise Investors is one of the largest private equity firms in Central and Eastern Europe. Active since 1990, the firm has raised nine funds with total capital exceeding EUR 2,5 billion. These funds have invested EUR 1.7 billion in 138 companies across a range of sectors and exited 125 companies with total gross proceeds of EUR 3.4 billion. For Enterprise Investors, the investment in CBA Slovakia represents entry into the Slovak food retail. As part of the transaction, Enterprise Investors will provide EUR 16 million additional equity funding to deleverage the business and finance expansion.
The company’s CEO, Lukáš Mucha, commented on the transaction and future plans: “We are excited about starting a new era for our company in partnership with Enterprise Investors. We have seen EI’s successes in other food retail investments, notably Dino in Poland and Profi in Romania. I am convinced that with their support our company has excellent prospects for further growth.”
The disposal of the company is the final step resulting from the long-lasting cooperation between CBA Slovakia and KPMG. Extensive advisory work covered a broad range of services ranging from accounting and tax advisory services, through optimization of company’s financing and operational structure, to exit preparation.
KPMG role
KPMG Deal Advisory acted as exclusive M&A advisor to the shareholder of CBA Slovakia. KPMG assisted the shareholder through all steps of the transaction resulting in signing of the share-purchase agreement on 2 November 2017.
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