Jul 06, 2016
Nordic Capital Fund VI (“Nordic Capital”) has sold its remaining 33 per cent ownership in Menigo Foodservice AB (“Menigo”). During Nordic Capital’s ownership, Menigo has been transformed into a strong and profitable company, leading the development of the Swedish food service market. Nordic Capital’s final divestment is part of Sysco’s acquisition of Menigo’s majority owner Brakes Group, creating the world’s largest food service group.
“During Nordic Capital’s ownership, Menigo was transformed from a loss-making division to a strong and profitable stand-alone company with a leading role in the development of the Swedish food service market. Menigo underwent an extensive operational improvement program impacting many areas of its business, including optimising the logistical set-up, expanding the private label range and improving its customer interface. I would like to thank the management teams of both Menigo and the Brakes Group for a successful collaboration in taking Menigo to where the company is today,” says Peter Hansson, board member of Menigo and Senior Advisor, NC Advisory AB, advisor to the Nordic Capital Funds.
After Nordic Capital’s acquisition of the division ICA Meny from the ICA Group in 2006, Menigo was rebranded as a stand-alone company and a leading company within the Swedish food service industry. Menigo’s transformation included investments in operational improvement not least in new distribution hubs and a new IT system. Today, Menigo operates from seven warehouse locations in Sweden, serving 15,000 customers with daily deliveries of frozen and chilled foods, fresh meat, fruit and vegetables.
In February 2010, Nordic Capital sold a majority stake in Menigo to the Brakes Group, one of Europe’s leading suppliers of food, drinks and catering equipment to the food service sector, which became the new principal owner of Menigo while Nordic Capital retained 33 per cent ownership in Menigo. Menigo has continued to operate as an independent company in the Swedish market while benefiting from being a part of a larger group.
Nordic Capital’s current divestment is part of Sysco’s acquisition of Brakes Group that was announced on February 22 and closed on July 5, 2016.