PRESS RELEASE
Maj Invest Equity acquires Good Food Group
Maj Invest Equity has entered into an agreement with the family behind Good Food Group A/S to acquire the company. As part of the agreement, the company’s food and packaging activities will be separated into two independent companies. Maj Invest Equity and one of its investors will hold all shares in both of them. The existing management teams will stay on with the respective companies after the transaction.
Good Food Group’s food business manufactures a wide range of food products, including marmalades, frozen fruit, nuts, non-dairy cream, sauces, dressing and honey as well as seeds and kernels – both under own brands (including Svansø and Skælskør) and as private-label products for the retail sector as well as for customers in the food service segment and in industry. The packaging business manufactures cartons, flexible packaging, labels and commercial printing for a diversified customer portfolio, primarily within food products, confectionery and beverages. The broad product portfolio of both companies was built through in-house innovation and business activities acquired over the years. Production takes place at a number of sites in Denmark, Poland, Sweden and Norway, and products are sold to more than 75 countries, of which the Scandinavian countries account for more than 60% of revenue. In 2017, Good Food Group generated total revenue of approximately DKK 1.4 billion.
“We’ve had an excellent dialogue with the owner family of Good Food Group in the course of contemplating an investment in the company, and we agree that it offers substantial potential, which we will now work to achieve together with the management and staff. By virtue of its size, product portfolio, high quality and close customer relations, we see an attractive potential for further strengthening Good Food Group’s market position within both business segments,” said Per Høholt, Partner in Maj Invest Equity.
Representing the owner family, Otto Christensen, Chairman of the Board of Directors of Good Food Group, added: “Our Board of Directors and advisers all concur with the family’s view that although Good Food Group is very well consolidated, the growth plan currently in place will entail substantial investments and extensive business initiatives. That’s why I’m very pleased to see Maj Invest Equity become active owners of our companies. That will strengthen our ability to achieve the significant potential of the two companies. By focusing and optimising our efforts within the two business segments while at the same time capitalising on the strong competencies Maj Invest Equity brings to the table, I’m confident that we can develop the two companies even further. We aim to further strengthen Good Food Group’s already strong position in the food industry and to build an even more effective position for the packaging business, both in terms of existing and new solutions within packaging, labels and commercial printing. At the same time, Maj Invest Equity’s investment in our companies will allow me to withdraw from the day-to-day management and continue to serve on the Board. My two sons, Torben and Allan, representing the third generation of our family, will continue to take part in the day-to-day operations of the food company, thereby contributing to preserving the corporate culture which has been instrumental in enabling our company to evolve into such a strong and widely recognised business. We are confident that an exciting future lies ahead for our company and for our employees with Maj Invest Equity as our owners.”
Per Høholt continued: “Good Food Group’s activities are currently concentrated in Scandinavia, and we wish to leverage the opportunities offered by the underlying market growth. At the same time, the markets are undergoing a number of structural changes, which we would like to be a part of. We are seeing increased demand for various types of products for the food services sector, which is currently taking market share from the retail trade. And we also see increasing focus on, for instance, sustainable packaging solutions and visual designs used to brand customer products efficiently. We look forward to collaborating with management and the many competent employees on delivering even better products and solutions to the customers and thus creating the basis for additional progress and growth.”
The transaction is expected to be completed within the next few months, subject to approval from the Danish and German competition authorities.
The parties have agreed not to disclose the transaction price.
Contact information:
Per Høholt
Partner
Maj Invest Equity
Tel.: +45 33 38 73 41
Otto Christensen
Chairman of the Board of Directors
Good Food Group A/S
Tel: +45 40 30 18 20
About Good Food Group
Good Food Group is a family-owned company established in 1951 with two business segments: Food and packaging. The food division manufactures a wide range of food products – both own brands and private-label brands – whereas the packaging division manufactures cartons, flexible packaging, labels and commercial printing. Production takes place primarily at sites in Denmark, Poland, Sweden and Norway. Good Food Group has about 750 employees and sells its products to more than 75 countries, mainly in Scandinavia.
For more information: www.goodfood.dk
About Maj Invest Equity
With total assets under management of around DKK 4.3 billion, Maj Invest Equity is Denmark’s largest private equity investor in small and medium-sized businesses. The portfolio presently consists of twelve companies. In 2016, Maj Invest Equity established its fifth fund with total commitments of around DKK 2 billion. Since 2005, Maj Invest Equity has invested in more than 35 companies. Maj Invest Equity A/S is part of the Maj Invest Group.