CMS has advised Decapterus S.a.r.l., a Luxembourg-based private equity holding company, on its agreement to sell Hame, a leading branded consumer goods company in the food sector in the Czech Republic and Slovakia, to Orkla. DLA Piper advised Orkla on the deal. The parties have agreed on a purchase price of EUR 175 million (on a debt-free basis). The purchase price will be funded through Orkla’s existing credit facilities, and the agreement remains subject to the approval of the relevant competition authorities.
According to an Orkla press release, “Hame holds strong market positions in numerous categories that represent a good fit with Orkla’s existing portfolio. By joining forces with Hame, Orkla will double its turnover in Central Europe.”
Hame has approximately 2,400 employees and ten production sites. The company’s headquarters is located in Kunovice in the south-eastern part of the Czech Republic. In the Czech Republic and Slovakia, Hame holds leading positions in the pate, ready meals, ketchup, preserved vegetables, jams, and baby food categories. Its brands include Hame, Majka, Znojmia, and Otma. Hame also has strong positions in pates in Hungary, Romania, and Russia. Hame achieved gross sales in 2014 of CZK 4.9 billion and a net profit of CZK 234 million. 70% of the company’s sales iss generated from the Czech Republic and Slovakia.
Orkla’s existing assets in Central Europe include Vitana (in the Czech Republic and Slovakia), Felix Austria, and Orkla Foods Romania.
“With Vitana and Hama, Orkla becomes an attractive supplier to the grocery trade in the Czech Republic and Slovakia, and the transaction will also strengthen our operations in Romania,” said Atle Vidar Nagel-Johansen, Orkla EVP and CEO of Orkla Foods. “A stronger foothold in Central Europe will ensure that Orkla is well positioned for further growth in these markets.”
The CMS team advising Decapterus was led by Prague-based Managing Partner Helen Rodwell, supported by Prague-based Senior Associates Frances Gerrard and Barbora Dubanska, Bucharest-based Senior Associate Ana-Maria Nistor, Budapest-based Senior Associate Zoltan Poronyi, Moscow-based Senior Associate Ernest Agayan and Trainee Solicitor Konrad Rawicz, and Kyiv-based Senior Associate Tetyana Dovgan.
Editor’s Note: After this issue was published, the Randa Havel Legal law firm contacted CEE Legal Matters to note that it “also materially participated on the transaction on the buy side.” According to Randa Havel, “In fact, we were responsible for the due diligence of the Czech companies and assets of the Hame Group CZ (representing approximately 50 pct of turnover of the group).” The firm’s message concluded with the note that “This deal is definitely a major milestone for us this year and we are proud that we have participated on the transaction.” The Randa Havel team consisted of Partners Iva Javorska and Alois Satava and Senior Associates Michal Palinkas and Matyas Kuzela.
Image source: hame.cz
