maconda advises VR Equitypartner on the add-on acquisition of the Karl Kemper Group, which will be managed together with Eichkamp under the umbrella of European Convenience Food
maconda News June 2014
Based on extensive and sound knowledge of the consumer goods industry and previous projects in the frozen food segment, VR Equitypartner entrusted the maconda team to support the add-on acquisition of Karl Kemper and the merger with Eichkamp.
A few months after its entry into Eichkamp, VR Equitypartner, together with private investor Harald Sipple and German Opportunity AB, has acquired another majority stake in the convenience food sector, continuing its buy-and-build strategy. The Karl Kemper Group, based in Borken, is a leading provider of frozen convenience products. The focus of Eichkamp and Karl Kemper is on the production of traditional German dishes and meals with a growing share of vegetarian options for the expanding out-of-home market. Karl Kemper primarily supplies large-scale kitchens such as refectories, canteens, and hotels. Distribution takes place via wholesalers and cash-and-carry markets. Karl Kemper was founded in 1975 and currently employs around 170 people with a turnover of approximately €30 million.
Eichkamp, also a leading provider of convenience products for the fresh and frozen sectors, in which the investor group has been involved since the beginning of 2014, primarily serves the food processing industry, leading discounters, and large food retail chains. Eichkamp and Karl Kemper will be managed under the umbrella of the newly founded European Convenience Food GmbH in the future. In total, the group generates a turnover of around €65 million. The previous managing shareholders of both companies remain operationally responsible and also hold a stake in the new European Convenience Food.
As an experienced advisor in consumer goods as well as food and beverages, particularly including the frozen food segment, maconda was commissioned with a detailed analysis of the synergies resulting from the merger of the two companies. In addition, the potential to create a strong domestic player with a pan-European reach was to be evaluated. A fixed part of the analysis was a detailed mapping of synergies, costs, and scheduling in product development, purchasing, production, sales, and logistics. The resulting estimates of the impact of recurring sales and cost synergies, as well as necessary one-off expenses on earnings levels, served as central input for the valuation and negotiation of the transaction terms. As a mandatory part of the analysis, maconda also examined the market and competitive landscape in the frozen food industry in depth and described the underlying value chain in detail.
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