Published: March 10, 2011
Penta to sell Żabka Polska in secondary buy-out.
Private equity firm Mid Europa Partners has agreed to buy Żabka Polska, a convenience store chain in Poland.
The Central and Eastern Europe-focused firm is joining Żabka’s management, which are also investing in the deal, in the secondary buy-out. The financial terms of the deal have not been disclosed and completion is subject to antitrust clearance.
Żabka is being sold by Penta Investments, a Central Europe-focused private equity group. The deal comes less than two months after Penta disposed of Żabka’s operations in the Czech Republic and its Koruna brand to UK retailer Tesco for US$56mn.
Mid Europa has been chosen as the preferred partner for chief executive Jacek Roszyk’s team following speculation that BC Partners was in talks to buy the company.
Roszyk said that Mid Europa brings the resources and expertise needed to support the company’s continued growth.
Mid Europa’s investment was arranged by Pawel Padusinski and Tomasz Blicharski. The firm intends to support management in growing the company organically and through acquisitions.
Penta bought Żabka in 2007 and has overseen the opening of more than 460 outlets, launched the Freshmarket brand and increased profits by almost 40%. It also expanded Żabka into the Czech Republic and bought Koruna.
Żabka generated a €650mn turnover last year from more than 2,450 outlets.