{"id":439,"date":"2021-09-21T11:14:00","date_gmt":"2021-09-21T11:14:00","guid":{"rendered":"https:\/\/moore-hungary.eu.moore-global.com\/?p=439"},"modified":"2025-12-03T14:17:10","modified_gmt":"2025-12-03T14:17:10","slug":"behind-the-scenes-of-the-reorganization-of-the-two-meghatarozo-canneries","status":"publish","type":"post","link":"https:\/\/www.mooreglobal.hu\/en\/kulisszatitok-a-ket-meghatarozo-konzervgyarto-reorganizaciojarol\/","title":{"rendered":"BEHIND THE SCENES ON THE REORGANISATION OF TWO MAJOR CANNERS"},"content":{"rendered":"

A brand new management approach and a strengthened capital structure have resulted from the restructuring process involving the transfer of ownership and operational control of Szatm\u00e1ri Konzervgy\u00e1r Kft. and EKO Konzervipari Kft., according to a panel discussion at the Hiventures-Portfolio Corporate Capital Financing 2021 conference.<\/strong><\/p>\n\n\n\n

Hiventures has acquired a fixed-term stake in the joint venture food processing companies with a turnover of nearly HUF 20 billion,<\/strong> in Szatm\u00e1ri Konzervgy\u00e1r Kft. and EKO Konzervipari Kft. - informed in April the MFB Group's Hiventures, which supported the concept of P\u00e9ter Medveczky and Botond Mih\u00e1lyi in their investment.<\/p>\n\n\n\n

G\u00e1bor Pet\u0151, Managing Director of Moore Hungary Real Estate and Capital Markets Consulting<\/strong> said at the outset that the history of the two leading canners is very interesting from a food industry perspective.<\/p>\n\n\n\n

P\u00e9ter Medveczky, owner of the Szatm\u00e1ri Canning Plant Ltd.<\/strong> said that the two main players of the acquisition were Szatm\u00e1ri Konzervgy\u00e1r Kft. and the Ny\u00edregyh\u00e1za-based EKO Konzervipari Kft., both of which started their history in the 60s and 70s. Szatm\u00e1ri Konservgy\u00e1r Kft. is known for its products under the brand name \u201eRege\u201d, while EKO is best known for its brand name \u201eNagymama lekv\u00e1rja\u201d. „Amikor elindultunk ezen az \u00faton, az volt a szempontunk, hogy keress\u00fcnk olyan c\u00e9geket, amelyeknek m\u00faltja \u00e9s j\u00f6v\u0151je is van, \u00e9s stabil versenyz\u0151 lehet a magyar piacon.” <\/em>Rege is the largest player in the Hungarian pickles market.<\/p>\n\n\n\n

The takeover of the company from the elderly owner, the generation change itself was not an easy task, the first transaction did not go smoothly, it took 17 months. „Mi az el\u0151tte l\u00e9v\u0151 4 \u00e9vben az \u00f6t\u00f6dik vev\u0151 voltunk, aki od\u00e1ig jutott, hogy szeretn\u00e9 megvenni a c\u00e9get, \u00e9s abban a b\u0171v\u00f6s pillanatban, amikor az elhangzott, az elad\u00f3 elt\u0171nt.<\/em><\/p>\n\n\n\n

„Nem volt k\u00f6nny\u0171, de ett\u0151l f\u00fcggetlen\u00fcl is kitartottunk.”<\/em><\/p>\n\n\n\n

According to P\u00e9ter Medveczky, the generation change seems at first to be a pleasant Hungarian euphemism for a complete restructuring of the company, which also requires a new management approach. He also pointed out that their goal is to generate returns, which requires the company to grow, which requires change.<\/p>\n\n\n\n

It is important to point out that Hiventures joined the transaction at month 5, and the owner was also missing for a few months due to the crown virus epidemic, he pointed out. Guszt\u00e1v L\u00e1ving, SME Investment Director at Hiventures<\/strong>, who believes that such investments in the food industry are important. When Hiventures sits down with the investment partners, the prospective buyers - in this case, Peter and Peter Medveczky - who are asking them to step back and look more broadly at these transactions. After all, in this case, it is not only a question of buying a company, but also of ensuring that the company will continue to operate for another 5-10 years. The companies are located in an economically important region, one in Ny\u00edregyh\u00e1za and the other in Tyukod, with over 200 employees. Not only are they looking at job retention, but they are also anticipating the liquidity of the companies after the transaction, and the companies have been technically screened, so they have already anticipated future investments.<\/p>\n\n\n\n

Dr. M\u00e1rton Kov\u00e1cs, attorney at law of HBK Partners<\/strong> could not disclose much about the transaction due to legal confidentiality, but noted that it was in the common interest that due diligence be fully implemented. As advisers, he said it was important to understand the context and, if something is found, not only to present it but also to offer a solution, because no one wants to turn back halfway through.<\/p>\n\n\n\n

There is an emotional element to all these transactions, because when the previous generation decides to leave, it is important for them that the trust conditions are met. While 17 months may seem like a long time, it is a very difficult decision to make in an operation that has spanned decades and that a manager wants to close. As an advisor, they can successfully represent the investor if they also know the emotional connotations the other side has attached to the deal, he adds.<\/p>\n\n\n\n

Rich\u00e1rd Posch, Banking Director of MagNet Hungarian Community Bank Zrt.<\/strong> pointed out that in many cases, the sale of a company involved in a generational change requires the buyer to raise venture capital and a bank loan to buy the target company. Establishing terms and conditions acceptable to all parties involved in the transaction is a complex and time-consuming process, with multiple players involved, which can make it very difficult to keep to the timetable negotiated between seller and buyer.<\/p>\n\n\n\n

A MagNet Bank \u00e9s a Hiventures arr\u00f3l t\u00e1j\u00e9koztatta a hallgat\u00f3s\u00e1got, hogy egy egy\u00fcttm\u0171k\u00f6d\u00e9s keret\u00e9ben olyan k\u00f6z\u00f6s megold\u00e1son, szolg\u00e1ltat\u00e1son dolgoznak, amiben a hitel \u00e9s t\u0151ke oldali forr\u00e1sbevon\u00e1si t\u00e1rgyal\u00e1sok p\u00e1rhuzamosan folynak, a Hiventures \u00e1ltal t\u00e1mogathat\u00f3 \u00fcgyletek banki bevizsg\u00e1l\u00e1sa egy „z\u00f6ld folyos\u00f3n”-n kereszt\u00fcl t\u00f6rt\u00e9nik, tov\u00e1bb\u00e1 a el\u0151re r\u00f6gz\u00edtik a saj\u00e1t szerep\u00fcket a konstrukci\u00f3ban, deklar\u00e1lj\u00e1k a target ipar\u00e1gakat, meghat\u00e1rozz\u00e1k az egym\u00e1s k\u00f6z\u00f6tti biztos\u00edt\u00e9ki poz\u00edci\u00f3kat, a t\u0151ke- hitel oldali strukt\u00far\u00e1t, kv\u00e1zi valamilyen szinten el\u0151re standardiz\u00e1lj\u00e1k a felt\u00e9telrendszert.  <\/p>\n\n\n\n

This means that the process of raising capital and debt can be significantly shortened, and the synergies from the collaboration can result in more favourable banking terms than an average LBO transaction. MagNet Bank and Hiventures plan to launch the facility in the last quarter of 2021, he added.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Moore Hungary<\/h2>\n\n\n\n

<\/p>\n\n\n\n

Moore Global, which started in a London office more than 110 years ago, is now one of the world's leading consulting and audit networks. Present in over 100 countries worldwide, the network has more than 600 independent offices and over 30,000 employees. The group's turnover for the last financial year exceeded $3 billion.

Moore Global's services will be directly available in the domestic market from March 2021.\u00a0<\/strong>Moore Hungary has been offering a full range of consulting services in the fields of business, financial, tax, accounting and auditing with a team of almost 100 experts since its inception.

In our fast-changing world, Moore provides strategic guidance and practical advice to help clients navigate and understand the complex regulatory and changing market environment and industry conditions, and thereby find the best solutions.<\/p>\n\n\n\n

Follow us on LinkedIn for more news!<\/strong><\/p>\n\n\n