One year after the acquisition of PM Zbrojníky and entry into the Slovak meat industry, the Penta private equity group is number one in the domestic market. Upon the signing of transaction documentation, Penta becomes an owner of the Mecom group. A successful completion of the whole transaction is conditioned by consent of the Anti-Monopoly Office of the SR.
“The transaction with the Mecom group is a key step towards the fulfilment of our strategic plan, being the ambition to build a competitive and mutually supplementing Central European company in this industry. Mecom is a challenge for us for a further expansion in Central Europe. Currently, negotiations in the Czech Republic and Hungary are ongoing. We are convinced that consolidation in meat industry is at the same time an assumption for a reduction of production costs and thereby also attenuation of the growth of meat products prices for end consumers,” Eduard Maták, Investment Director of Penta Investments, said.
“I have decided to sell my interests in the Mecom group at the time, when the company prospers but when it at the same time needs new impulses for a further successful growth. I negotiated on the sale with several investors for almost one year and accepted the most advantageous offer,” Ján Molnár, owner of the Mecom group, said.
Details on the transaction amount represent the subject-matter of a business secret. The partner of the private equity group, Jozef Špirko, who has a whole range of experience in business restructuring (ZSNP, AVC Čadca, Novoke, etc.), will deal with the consolidation of Penta´s assets in meat industry.
“The acquisition of the Mecom group creates a space for property consolidation, optimization of operating costs, and determination of a suitable business and production strategy of the whole group. We expect that new investments and increase in production capacities will lead to a growth of job opportunities,” Jozef Špirko said.
Basic Information:
The Mecom group is the largest producer of meat products with a 28% market share. Currently, the company has 1,514 employees. Total revenues as of December 31, 2007 reached SKK 3,946 million. Mecom, a.s Humenné was incorporated in 1995 from a former state enterprise. Under the DRUGET brand, it produces durable meat products, soft salamis, soft meat products and specialities. In July 2006, Mecom Humenné was assumed by the Hrádok Lučenec meat plant The Mecom group exports its products especially to Bohemia, Poland, and Hungary; export reaches about 12.7 % of the group production
Penta in Meat Industry:
December 2006 – notification of the entry into PM Zbrojníky, the fourth largest producer in the Slovak market
February 2007 – consent of the AMO with the transaction; Penta becomes a 100% shareholder of PM Zbrojníky
March 2007 – business restructuring, especially:
- loan portfolio restructuring;
- renewal of the trust in contractor-client relationships in the industry;
- product portfolio restructuring, increase in the sales of Konzervárne by 20%;
- Penta´s total investments in PM Zbrojníky reached approx. SKK 230 million.