The deal, struck for an undisclosed sum, comes two months after Penta sold its Czech Zabka business to Tesco. The UK retailer had been linked to Zabka’s Polish operations but the convenience retailer is set to switch to another private-equity firm, Mid Europa, which focuses on central and Eastern Europe.
Zbigniew Rekusz, a partner at Mid Europa, 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.”
Penta bought Zabka Polska in 2007 since when the retailer has added more than 400 stores to the chain and introduced a new format, Freshmarket. Zabka Polska now runs around 2,400 convenience stores and around 55 Freshmarket stores.
“Zabka Polska is a great company with strong fundaments, so my congratulations go to Mid Europa Partners,” Jozef Janov, Penta’s investment director and board chairman at Zabka Polska said on Friday (25 February). “We have met our promises to increase the value of Zabka significantly. Gross revenues have grown by almost 42% and EBITDA by 162%.”
According to non-audited data issued by Penta, Zabka Polska generated turnover of PLN2.54bn (US$889m) and EBITDA of PLN121.5m in 2010.
The deal remains subject to anti-trust clearance.