Polish logistics operator VGL Group has agreed to sell a minority stake to 21 Concordia, Dariusz Gorka, managing partner at the Poland-based sponsor said.
The transaction, signed earlier this week, involves a “significant minority stake” in the EUR 100m company, a source close to the situation said, without disclosing the deal value or its structure. Closing is expected in mid-June, he added.
VGL Group launched a process to raise acquisition financing in mid-2017, as reported earlier by this news service.
21 Concordia will support VGL Group in further growth, including in acquisitions of local peers, taking advantage of the fragmentation of the Polish logistics sector, Gorka said. Targets are likely to be niche logistics companies up to the size of VGL Group itself, he said. The Polish logistics sector is growing at 5%-6% per year, but the idea is to focus on niches rather than competing head-on with the country’s top logistics firms, he said. VGL Group has already built a strong presence in the logistics services for e-commerce operators and fashion retailers such as Pepco and LPP [WSE:LPP], he pointed out.
A deal could happen as early as this year, Gorka said. While the focus is on Poland, acquisitions in places such as France or Italy, where the Concordia group also has a presence, are not excluded, he said. The goal for 21 Concordia is to turn VGL Group into a PLN 1bn (EUR 232m) turnover business in three to four years, he said.
VGL Group’s advisors for the transaction with 21 Concordia included Vienna Capital Partners (VCP) (financial advisory) and Zelaznowski & Głowinski (legal), the source close said.
21 Concordia used internal resources for financial advisory matters, with legal advice provided by Stolarek & Grabalski and due diligence performed by PwC, the source said.
According to its website, VGL Group offers sea, air, rail and truck freight forwarding services. Founded in the year 2000 and headquartered in Gdynia, the group has 17 locations in Poland, two in China and one in Hong Kong and a total of 400 employees.
Source: Mergermarket, 10 May 2018