On January 31st 2011 Bakalland S.A., leader of the Polish delicacies market, purchased 99,95% shares in “PIFO” EKO-STREFA from two individuals, Mr. Sławomir Ryczkowski and Mr. Sebastian Ryczkowski for PLN 57m.

PIFO is a producer of breakfast supplies, including flakes, bars and other similar products. Retail chains are the main customers of PIFO (private label). The conditional purchase agreement was signed in November 2010 and could be finalized at the end of January 2011 after Bakalland received an investment credit from Bank BGŻ S.A.

PIFO is a very profitable company as EBITDA margin in 2010 amounted to 24%. Purchase of shares in the company at implied EBITDA multiple of ca. 6,9x is a success for Bakalland. Key advantages from the transaction for Bakalland include partial decoupling from seasonality of sales related to current activities, synergy effects coming from combining the two businesses and entering a promising flakes market.

FIDEA acted as the sole financial adviser of Bakalland S.A.