Valora takes over BackWerk
Swiss retailer Valora expands its presence in Europe by acquiring BackWerk, a self-service bakery chain with more than 300 outlets in Germany.
Subject to the approval of the German Federal Cartel Office, Swiss-based Valora Holding AG will acquire the food service company BackWerk from Swedish financial investor EQT in an exclusive sales process in the fourth quarter of 2017. The purchase price for the full takeover amounts to around EUR 190 million. BackWerk's current management team will remain on board, and the company will continue to be managed from its Essen headquarters, in future as part of Valora's Food Service division.
Valora with more than 1,500 German outlets
BackWerk has more than 300 outlets in Germany, most of which are operated on a franchise model. The acquisition significantly expands Valora's "presence in the German out-of-home market", according to a media release. Together with the other existing formats in Germany - Ditsch, ServiceStore DB, Press & Books, cigo, k kiosk, avec and U-Store - this gives a total of over 1 500 outlets, primarily in high-traffic locations.
In addition to a number of locations in Switzerland, Slovenia and the UK, BackWerk also has 20 outlets in Austria, where Valora is already active with Brezelkönig International and Press & Books, and 13 outlets in the Netherlands. BackWerk generates external sales of more than 200 million and has expanded the number of its outlets by 25 percent over the past five years. BackWerk expects net sales of around 55 million in 2017, with an operating EBITA margin of around 26 percent. Valora is paying an EBITA multiple excluding synergies of around 13 for BackWerk on a 2017 basis.
Holding AG plans capital increase
In addition, Valora expects the acquisition to generate annual sales and margin synergies in the single-digit millions over the medium term. As Michael Mueller, CEO of Valora, said, an extraordinary general meeting in November 2017 will be asked to approve a capital increase of around CHF 150 million, which will also serve to refinance the hybrid bond maturing in 2018.
Valora has some 2,500 convenience and food service outlets at high-frequency locations in Switzerland, Germany, Austria, Luxembourg and France. The Group's headquarters are located in Muttenz (BL). The holding company's registered shares are traded on the SIX Swiss Exchange AG.
