Penta sells Zabka to Mid Europa Partners

Penta Investments, the Central European investment group, has signed an agreement to sell Zabka Polska S.A. to Mid Europa Partners. The transaction remains subject to antitrust clearance.

Zabka Polska is the leading convenience store chain in Poland, operating around 2,400 convenience stores across the country and roughly 55 new "Freshmarket" store formats. In 2010 it recorded retail turnover of around EUR 650 million and EBITDA reached EUR 31 million (non-audited results).

In 2007 Zabka Polska was acquired by Penta Investments. Since that the company has opened more than 400 stores and introduced the new format Freshmarket. Penta expanded with Zabka to Czech Republic as well and made an acquisition of Koruna supermarkets. In December 2010 Penta sold the Zabka CZ and Koruna operations to Tesco. The closing of the Czech transaction is expected in April 2011.

"Zabka Polska is a great company with strong fundaments, so my congratulations go to Mid Europa Partners. We have met our promises to increase the value of Zabka significantly. Gross revenues have grown by almost 42% and EBITDA by 162%. Right now, Zabka is the best investment of Penta in Poland and among TOP 3 projects in the overall history of Penta on all markets. Penta is highly committed to the Polish market and we remain very active in approaching other investment opportunities. We wish Mid Europa Partners success in the continued expansion story of Zabka & Freshmarket," Jozef Janov, Investment Director of Penta and Chairman of the Supervisory Board of Zabka Polska S.A. said.

Zbigniew Rekusz, Partner of Mid Europa and head of its Warsaw Office, said: "We are highly impressed with Zabka Management team's track record of delivering strong financial performance while managing rapid expansion on the Polish retail market. We look forward to working closely with them and supporting Zabka's further organic expansion and consolation plans"

"We welcome Mid Europa Partners on board. As the company's top management, we are very confident about their strategy of further growing the Zabka and Freshmarket networks. We are ready to continue our robust expansion with the aim of becoming one of the top five retail networks in Poland soon", Jacek Roszyk CEO of Zabka added.

The transaction has been prepared in a close cooperation between Penta and top management of Zabka. The top management of the company stays with the new owner.

The advisors to Penta were JP Morgan, Baker McKenzie, KPMG and Roland Berger. The advisors to Mid Europa were Vienna Capital Partners, Cameron McKenna and PwC.

Zabka Polska - Key Figures
2006 2007 2008 2009

2010
(non-audited)

Number of shops 1700 1850 2000 2150 2400
+ 55 Freshmarkets
Turnover (mln. PLN) 1468 1779 1986 2241 2535
EBITDA (mln. PLN) 46 76 88 104.5 121.5

About Zabka

Żabka Polska S.A. is the owner of the largest chain of centralized and format convenience stores in Central and Eastern Europe operating under the Żabka brand. Within several years of activity in the national market it has become the undisputed leader of this trade segment in Poland. Żabka chain stands for modern retail sales concept, always striving to guarantee its customers the best and most convenient shopping experience. To meet consumers' needs, Żabka offers the best brand products and services in over 2400 stores.

The overriding goal of the Company is continuous development of the chain, effective service of stores and creation of a unique offer of goods and services to cater for the maximum needs of local communities. In order to fulfil that mission, Żabka stores can be found in convenient locations  to make shopping fast and easy.  Stores are open from 6.00 am to 11.00 pm for 365 days a year. In 2009 the Company introduced Freshmarket - a new, bigger chain of deli convenience stores.

For more information about Żabka stores visit:  www.zabka.pl; www.zabkapolska.pl

About Mid Europa Partners

 Mid Europa Partners is a leading independent private equity firm focused on Central and Eastern Europe. Operating from London, Budapest and Warsaw. Mid Europa Partners advises and manages funds with asset value of approximately € 3.2 billion. The Mid Europa Partners team has been investing in Central and Eastern Europe since 1999.

About Penta

Penta is a Central European investment group established in 1994. It operates mainly in healthcare, financial services, manufacturing, retail, media and real estate development. Its portfolio companies provide jobs to more than 41,000 people and reported assets of EUR 9 billion in 2017. Penta operates in more than 10 European countries and has offices in Prague, Bratislava and Warsaw.

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