EQT GREATER CHINA II SELLS CLASSIC FINE FOODS GROUP TO METRO GROUP

  • EQT sells premium food service company Classic Fine Foods Group to the listed German retailing group METRO GROUP
  • CFF is the market leader in premium foodservice in Asia and Middle East
  • CFF has more than doubled its turnover organically and significantly improved its profitability under EQT ownership
  • Transaction represents an initial enterprise value of USD 290 million, rising a further USD 38 million based on performance 2015-2017

EQT Greater China II Fund (“EQT Greater China”) has reached an agreement to sell Classic Fine Foods Group (“CCF” or the “Company”), the leading fine foods service company in Asia, to the listed German retailing group METRO GROUP. The acquisition strengthens METRO GROUP´s wholesale subsidiary METRO Cash & Carry.

CFF, headquartered in Singapore, serves the vast majority of five-star hotels and high-end restaurants across 12 markets and 25 cities across Asia and Middle East. The Company partners with the best foods producers in Europe, mainly from Europe, to provide a broad and highest quality offering to leading executive chefs.

EQT Greater China acquired CFF from the Vestey Group in January 2011. Since then, the Company has grown on average at 15% per year organically, and has also significantly improved its profitability.

“Classic Fine Foods has developed enormously during EQT’s ownership, entering new product categories, deepening and broadening its relationships with key suppliers, entering new markets such as China, and institutionalizing best practices in areas including procurement. The size of the business has doubled as a result, and we are pleased that the group of local businesses EQT acquired has developed into a coherent company that is a clear leader within fine food service. We believe METRO will be an excellent new home where Classic Fine Foods will be able to enter its next phase of growth," said Simon Griffiths, Partner at EQT Partners, Investment Advisor to EQT Greater China II.

“With Classic Fine Foods, we found the perfect partner to expand in high growth Asian food service distribution markets. Classic Fine foods has a strong market position and a unique exposure to Asian mega cities and Middle East,” added Pieter Boone, CEO of METRO Cash & Carry.

The transaction values CFF at an initial enterprise value of USD 290 million. There will be an additional earn-out of up to USD 38 million depending on the EBITDA performance in 2015 to 2017.

Contacts:
Simon Griffiths, Partner EQT Partners +65 6595 18 34
Kerstin Danasten, EQT press contact +46 8 506 55 334

About EQT
EQT is a leading private equity group in Europe, with portfolio companies across Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For further information please visit www.eqt.se

About METRO GROUP
METRO GROUP is one of the largest international retailing companies. In the financial year 2013/14 it generated sales of EUR 63 billion. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self service wholesale – Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

For further information please visit www.metrogroup.de