December 16, 2013

CapMan Russia sells shares in Russian Baltic Pork Invest to Charoen Pokphand


CapMan Russia sold its shares in Russian Baltic Pork Invest ASA to Charoen Pokphand Foods Plc, where the exit is the first trade sale of the 2008 vintage fund.


The Russian Baltic Pork Invest ASA (RBPI) is a large scale pork producer based in Kaliningrad. The company currently has 6,200 sows and produces 190,000 slaughter pigs/year. RBPI has outperformed its European peers in terms of efficiency benefitting from Danish know-how. RBPI is expanding its operations to mainland Russia and is planning to establish three additional pig farms in 2015-18.


"RBPI was a greenfield investment for CapMan Russia. Danish and Norwegian pig producers led by Bonus Gruppen allowed us to copy best western know-how and practices into Russia enabling us to create one of the most efficient large scale pig farms in the world. Further, the company has developed environmental processes and risk management standards under our ownership in order to support sustainable growth in the future. We are confident that RBPI will continue growing profitably under the new ownership," says Kare Wessel, Investment Director at CapMan Russia and responsible for the investment.


"CapMan Russia proved to be an excellent partner for RBPI. In addition to assisting with securing additional financing from Russian and international banks, CapMan Russia acted as a door opener for us in Russia by opening sales channels and identifying several opportunities for further expansion," says Thomas Norgard CEO of RBPI.


CapMan Russia fund made its initial investment in RBPI in 2008. Prior to the transaction, CapMan Russia owned 24.2% of RBPI's shares. The exit does not impact CapMan Plc's result for 2013 as the selling fund is not in carry.


The CapMan Russia team is currently investing from the CapMan Russia II fund in fast-growing consumer sectors that benefit from Russia's expanding middle class, as well as business-to-business services. The fund's focus is on transforming Russian small & medium enterprises (SMEs) in provincial growth centres into domestic leaders and selling them to Russian and international trade buyers.


Russia Baltic Pork Invest is a large scale grain and pork producer in the Kaliningrad region. The company is targeting to expand its operations into mainland Russia, and is producing approximately 190,000 slaughter pigs per year.


CapMan Russia is a leading Russian private equity manager focused on small to mid-cap Russian growth companies. The team has made 41 investments and 29 exits since 1996. The latest fund held a first closing of €97 million (US$133 million) in 2013. CapMan Russia is part of CapMan Group, a leading private equity firm in the Nordic countries and Russia.


Charoen Pokphand Foods Plc has a leading position in the agro-industrial and food industry. The company is dedicated to providing high quality, nutritious, hygienic and safe products to satisfy consumers' needs in many markets around the world.