Deal summary:

Target: Karl Kemper / Eichkamp

Industry: Consumer goods / food

Investor: VR Equitypartner

Task: Synergy check

Frozen food, hot deals – maconda advises VR Equitypartner on the add-on acquisition of Karl Kemper to form the European Convenience Food company in conjunction with Eichkamp

maconda news June 2014

Based on comprehensive and in-depth knowledge of the consumer goods industry and previous projects in the frozen food segment, VR Equitypartner engages the maconda team to support the add-on acquisition of Karl Kemper and its merger with Eichkamp.

maconda assesses synergy potential in a merger of leading German manufacturers of frozen convenience food

Following the acquisition of Eichkamp at the beginning of 2014, VR Equitypartner together with the private investor Harald Sipple and the German Opportunity AB continues its buy & build strategy in the convenience food sector with the acquisition of Karl Kemper. The company, headquartered in Borken, Germany, is a leading supplier of frozen convenience food for the growing out-of-home market. Both companies supply traditional German meals and meal components with a growing share of vegetarian food. The main customer group of Karl Kemper is food service (hotels, restaurants, cafeterias and canteens) supplied via wholesalers and cash & carry stores. Karl Kemper, founded in 1975, generates sales of approximately € 30 million and employs about 170 people.

Eichkamp is also a leading supplier of frozen convenience food and is focusing strongly on the industrial customers, discounters and large food retail chains. Eichkamp and Karl Kemper will merge to form the European Convenience Food GmbH, generating sales of about € 65 million. The former managing partners of both companies will remain operationally responsible and also stay shareholders in the merged entity.

As a highly experienced advisor in consumer goods and food & beverage, including the frozen food segment in particular, maconda was retained to conduct a detailed analysis of the synergies stemming from the merger of the two companies as well as to assess the potential to form a strong domestic player with a pan-European reach. Integral part of the engagement was a detailed mapping of synergies, costs and timing in the areas of product development, purchasing, production, sales and logistics. Resulting estimates of the earnings level impact of the recurring revenue and cost synergies as well as the necessary one-off expenditures served as key input for valuation and deal terms negotiation. As an obligatory part of the analysis, maconda also conducted an in-depth review of the market and competitive landscape in the frozen food industry as well as a detailed description of the underlying value chain.

We would also be happy to assist you as a competent and reliable partner. For example in the food & beverage and consumer goods market for synergy checks, commercial due diligence assessments (also for vendors), value enhancement projects, business development, international expansion and also in strategic and operative restructuring.

Please do not hesitate to get in touch should you require our expertise. We look forward to hearing from you!

About maconda

We support our clients in increasing sales, profit and company value as well as commercial transaction services. These include comprehensive target screenings, systematic preparations for company sales (exit readiness), commercial due diligence assessments (also for sellers) and post-merger integrations. Our main industries of expertise: consumer goods, foods, retail, services (health, leisure, media, etc.), business process outsourcing (customer service, temporary work, facility management, etc.), textiles and select technical industrial goods. Our multinational team of consultants is optimally positioned, completely covering the key regions of Western Europe, the CCE countries and BRIC countries – in most cases with native speakers.

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