Kervan Gıda Completes Its First Overseas Acquisition

Kervan Gıda completed its first overseas acquisition following its initial public offering. The company announced in a disclosure to the Capital Markets Board that it acquired shares in ZPC Otmuchów and its subsidiary PWC Odra, leading soft candy manufacturers in Poland. Kervan Gıda, a soft candy producer that exports to 85 countries, completed its first acquisition under its global growth targets announced following the initial public offering. The acquisition, aimed at taking advantage of customs duty benefits, diversifying geographic risk and strengthening the Bebeto brand's position in the European modern channel, brought Kervan Gıda one step closer to its global objectives. In previous months, Kervan Gıda announced it planned to invest or make acquisitions in Europe using 55% of IPO proceeds, and signed a Share Purchase Agreement to bring ZPC Otmuchów and its subsidiary PWC Odra, leading soft candy manufacturers in Poland, into its portfolio. The company has now completed the acquisition process.

In its disclosure to the Capital Markets Board, Kervan Gıda announced that following detailed negotiations, it acquired 100% of the shares in a company called Tornellon Investments, through which 64.93% of ZPC Otmuchów's shares were transferred, and 26.95% of ZPC Otmuchów's subsidiary PWC Odra's shares.

In the acquisition, which was carried out through Kervan International AB, the company's 100% subsidiary established in Sweden, Kervan Gıda paid EUR 13,258,093.63 for the 64.93% stake it acquired at a EUR 23.5 million valuation representing 100% of ZPC Otmuchów. The company disclosed that the acquisition of PWC Odra's 26.95% stake was conducted at a EUR 3.8 million share valuation and the total amount paid was EUR 17,058,093.63.  

Capacity increased by approximately 52 percent…

ZPC Otmuchów and PWC Odra, which produce and sell products such as chocolate-covered marshmallows, bars, halva and salted snacks, have over 600 employees and 4 production facilities with annual production capacity of 37,707 tonnes. Kervan Gıda aims to improve operational efficiency by increasing the capacity utilization rate of the acquired companies from approximately 48% and thereby raise profitability. With this acquisition, the company also increased its annual production capacity of 72,300 tonnes by approximately 52%.