Düsseldorf-based retailing company Metro Group has acquired the Classic Fine Foods Group (CFF) from private equity firm EQT.
CFF is a premium food service distribution (FSD) player headquartered in Singapore, serving high-end hotels and restaurants in Asia and the Middle East.
The acquisition strengthens the Group’s wholesale subsidiary Metro Cash & Carry with FSD capabilities.
It provides access to growth and value creation potential in the premium FSD markets.
The transaction covers the operations and all fixed assets of CFF for an enterprise value of US$290 million and an earn-out of up to US$38 million depending on the EBITDA performance in 2015 to 2017.
“During EQT’s ownership, Classic Fine Foods extended into new product categories, initiated relationships with new suppliers, entered new geographies, for instance China, and institutionalized best practices in areas including procurement,” said Simon Griffiths, partner at EQT Partners, investment advisor to EQT Greater China II.
“The size of the business has doubled and we are pleased that a number of local companies have developed into a coherent group that is a clear leader within fine food services.”
Metro Group says the FSD potential in the market for hotel, restaurant and catering (HoReCa) is substantial: A growing number of HoReCa professionals prefer to have their orders delivered especially in Asian mega cities and Middle East.
“We have already successfully established our own FSD activities in markets such as China, Germany and Russia. By expanding the business activities of CFF to selected European METRO Cash & Carry markets we better tap the FSD growth potential in those markets”, said Koch.
“Furthermore, we strive for joining forces with CFF by utilizing METRO Cash & Carry’s assortment and its suppliers.”
CFF’s geographical footprint covers 25 cities located predominantly in Asia (e.g. Singapore, Dubai, Hong Kong, Bangkok, Kuala Lumpur, London, Ho Chi Minh City and Jakarta) across 14 countries.
This will increase Metro Cash & Carry’s presence from 26 to 36 countries.
