The Düsseldorf-based retailing company Metro Group has acquired the Classic Fine Foods Group (CFF) from private equity firm EQT.
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CFF is a premium food service distribution (FSD) player headquartered in Singapore, serving high-end hotels and restaurants in Asian mega cities and Middle East.
The acquisition strengthens Metro Group´s wholesale subsidiary METRO Cash & Carry with dedicated FSD capabilities. It provides access to growth and value creation potential in the attractive premium FSD markets.
The transaction covers the operations and all fixed assets of CFF for an enterprise value of $290 million plus an earn-out of up to $38 million depending on the EBITDA performance in 2015 to 2017.
CFF´s geographical footprint covers 25 cities predominantly Asian (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. CFF‘s business comprises sourcing and procurement, import and export, storage and handling, marketing and distribution of high-end fine foods products such as dairy, meat, pastry, seafood, high quality perishables, condiments, pasta and dry products.
By directly distributing international and mostly European premium brands CFF serves the daily needs of HoReCa customers like five-star hotels and high- end restaurants in Asian mega cities and Middle East. Additionally, the company serves airlines, supermarket chains and delicatessen stores. CFF employs approximately 800 people, generates annual sales of more than $200 million and is highly profitable.
CFF has its own distribution and warehousing network across the cities it serves. This enables the company to offer highly flexible delivery schedules. Products are sourced and stored in CFF´s network of warehouses through third-party providers and are distributed using CFF’s fleet of vehicles or external drivers to meet peak demand.
After being acquired by Metro Group, CFF will remain largely independent, maintaining its own sourcing base and distribution network. ■
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