Private equity group Penta has acquired the meat processing company and trader Mecom Trade, a.s., in Humenne. On Wednesday, transaction documents were signed and Penta submitted a request for approval of Mecom's acquisition to the Slovak Antitrust Office (PMU). One of Penta's partners, Jozef Spirko, former owner and president of Mecom Jan Molnar and Penta's Investment Director Eduard Matak reported this at a news conference in Kosice on Thursday. They did not disclose for what price Penta had bought Mecom, saying that that is a business secret and the acquisition first needs to be approved by the PMU. Penta has thus become number one in meat processing and trade on the Slovak market. In December of 2006, Penta entered PM Zbrojniky, one of Slovakia's largest meat processing companies and following the approval of the antitrust office, became its one hundred-percent stakeholder. Penta has invested SKK 230 million into PM Zbrojniky.
Mecom's former owner Mr. Molnar told the press conference that he had decided to sell his shares in the company, as it needed new impulses for further growth. He added that a group of Danish investors had also expressed interest in Mecom; however, Penta presented a better offer. "Within three years, output of Mecom Humenne will grow and investment into new technologies will reach around SKK 700 million to SKK 1 billion, and after completion of the third investment phase, 400 people will find new jobs here," Mr. Molnar stated.
"This transaction with the Mecom Group is a key step toward fulfilling our strategic objective -- to build a competitive and mutually complementary central-European company in this sphere. Mecom is a challenge for us in further expansion in central Europe, mainly within the Visegrad group countries," said Mr. Matak. Penta is finalizing intensive negotiations on acquisitions of three independent meat-processing firms in Hungary, and leading negotiations in the Czech Republic.
"Our goal is to build a central European meat-processing holding within five years, based in Humenne," added Mr. Molnar, who is in charge of carrying out this Penta project, and president of the upcoming holding. According to Mr. Matak, the holding should reach annual sales of EUR 300 million.
The Mecom Group is Slovakia's largest meat producer and trader, with a 28 percent market share. It currently employs 1,514 people. In 2007, it reported sales of SKK 3.946 billion.
Penta is a Slovak-Czech private equity group, founded in 1994. It operates chiefly in Central Europe. It focuses on acquisitions of big and medium-sized companies, LBO, LBI, restructuring projects and, since 2005, also on real estate. Penta manages funds for its five owners. It currently invests chiefly in Slovakia, the Czech Republic and Poland. It employs 200 people in its branches in Prague, Bratislava, Moscow and Cyprus. About 20,000 people work in the companies it has in its portfolio. It develops activities in the power sector, engineering industry, health sector, civil aviation, retail, real estate, telecommunications, entertaining industry and private banking.
(EUR 1 = SKK 33.018 on February 14)