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Rollover transaction: sale of the company and reinvestment by management
The IDAK Food Group is undergoing a change in ownership structure. The transatlantic investment company TowerBrook Capital acquired a majority stake in IDAK, replacing the previous financial partners Invision and NORD Holding. This transaction strengthens IDAK's capital base and enables further growth as well as strategic acquisitions in Europe.
The management team around CEO Christof Lehmann remains with a minority stake in the company. IFBC supported the management as exclusive financial advisor and ensured that all relevant aspects for the management were considered during the sale and reinvestment to ensure an optimal solution.
Christof Lehmann, CEO of IDAK, will tell us more about this important transaction and the future of IDAK in the following interview.
The market for frozen products in Europe and the US is enjoying constant demand. In recent years, we have observed a sustainable trend towards high-quality and affordable convenience products. Although this development still contains effects from times of pandemic and high inflation, premium frozen food is becoming increasingly popular. The demand trend also includes consumers' need for fresh raw materials and “clean label” products. In particular, millennials appreciate the advantages of frozen products that do not contain any artificial additives or preservatives. We see opportunities for frozen products here.
In addition to organic growth with customers in existing markets, inorganic expansion and internationalization are an essential part of our strategy. Our ambition is to make targeted acquisitions to open up new segments and countries. Our business model allows us to achieve economies of scale following initial investments. The financial conditions for this have now been created. With TowerBrook Capital, we also gain access to expertise and an extensive global network, which we use to create value for all stakeholders.
Cooperation within the new structure and with our new colleagues has got off to a good start and will become more established in the coming months. We are benefiting from experience in other markets and fresh ideas. The desired internationalization has been initiated and will be implemented step by step, which I appreciate very much.
We have grown very quickly and inorganically as an SME, which has led to complex structures. In particular, this includes the number of legal entities. One challenge was to meet the increased requirements of our new international investors. In addition, management wanted to re-invest extensively after the sale of the company and it was necessary to protect their interests as minority shareholders.
Management is largely responsible for the company's short- and long-term performance. When selecting the new investor, mutual expectations regarding growth and qualitative values were aligned. TowerBrook Capital convinced us in all respects. IDAK's management believes in the group's development and has taken a broad minority stake in the company. All elements of the personal risk/return profiles were successfully addressed in the participation agreements.
The IFBC team provided direct support to IDAK's management both in the preparations for the transaction and in the negotiations. We wanted a contract that was fair to all parties, reflected our ambitions and met international standards. The solution developed in dialog with IFBC ensures that all stakeholders are able to realize their share of the value created in the active development of IDAK.
Christof Lehmann has many years of extensive experience in the food industry. Before becoming Group CEO at IDAK, he was a member of the management board at KADI AG for 18 years, serving as CEO for 8 of those years. In recent years, he has played a key role in driving the group's development and the acquisitions of Margherita Srl and Romer's Hausbäckerei.
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