Global Cream Investments Case Study

Three-Stage Management Buyout

  • Cremio AD (then Codap EOOD) used to be the Bulgarian operation of Co.Da.P Cola Dairy Products Spa (Italy), one of the largest vegetable cream producers in Europe.
  • In 2015, due to an insolvency procedure for the parent started in Italy, UniCredit, one of the lending banks of the Bulgarian subsidiary, launched a foreclosure with the intention to sell the going concern of Codap EOOD. Codap EOOD itself was a profitable and growing business.
  • The management team of Codap EOOD engaged SORTIS to assist them in implementing a management buyout (MBO) of the Bulgarian subsidiary.
  • SORTIS devised and successfully implemented a long-term MBO strategy in three stages to ensure a win-win outcome for all parties involved:

Stage 1: In a very time sensitive situation, SORTIS blocked a hostile takeover attempt and lined-up a consortium of financial investors that backed the management team in acquiring the going concern from the lending bank in July 2015. Тhe transaction was the first ever sale of an operating going concern in Bulgaria.

Stage2: 8 months later SORTIS arranged a refinancing of the mezzanine loan provided by the financial investors with a bank debt of €7M from Societe Generale. The financial investors realized a return of ca. 20% on their mezzanine investment and remained minority shareholders in Cremio AD.

Stage 3: In 2017, SORTIS structured and negotiated acquisition financing from First Investment Bank to buy out the remaining shares of the financial investors. The management team obtained 100% ownership of the Company.

  • Cremio grew with 40% since the MBO and now exports to 30+ countries.
  • SORTIS was invited to Cremio’s Board of Directors.