HgCapital Trust plc Regulatory News (HGT)

14 Oct 2005 10:01

HG Capital Trust PLC14 October 2005 The following is the text from a press release issued by HgCapital, whichmanages the investment portfolio of HgCapital Trust plc alongside those of otherclients. The trust, which participates in all of HgCapital's investments, willinvest €6.8 million in Hofmann-Menu Group. HgCapital acquires Hofmann-Menu Group from Pricoa Capital Group Frankfurt, London 14 October 2005. HgCapital, the European sector-focusedprivate equity investor, and Pricoa Capital Group have signed an agreement onthe sale of Hofmann-Menu Group ("Hofmann"). The MBO of Hofmann will be mainlyfinanced through HgCapital's funds and bank debt. The transaction is subject toapproval from regulatory authorities. Headquartered in Boxberg-Schweigern, Germany, Hofmann is a market-leadingprovider of frozen food products as well as related on-site catering for smallbusiness canteens and social organisations such as care homes, hospitals, andschools in Germany. Hofmann differentiates itself from its competition through afocus on quality (no preservatives and no additives) and a wide choice ofhealthy and tasty menus. The company's centralised production process alsoallows for significant cost advantages over traditional catering firms. Hofmann is expected to generate sales of over €90m in 2005. It currently servesand services 9,000 clients and produces 150,000 meals daily. The Group currentlyemploys more than 1,100 people. Pricoa took full control of Hofmann in 1999 when it bought out a stake held bySchroders, to whom it had already supplied mezzanine capital in 1996. Dr Karsten Hartmann, Director, HgCapital Frankfurt, said:"CEO Johannes Ulrich and his team have done a tremendous job at Hofmann. Theyhave significantly increased EBIT and put the business back on an attractivegrowth path. Hofmann is the market leader in Germany in the production anddelivery of frozen food and a strong number two in the "meals-on-wheels"business. Hofmann is well positioned to continue its highly successfuldevelopment. We see a lot of untapped potential in the German market and lookforward to working with the management." Thomas Krausser, Vice President, Pricoa Capital Group stated:"In the last four years, Johannes Ulrich and his team have set the course forsustainable profitable growth at Hofmann. It has been a pleasure working withthem. With the support and backing of HgCapital, there is no doubt they are wellpositioned to exploit market potential and take Hofmann to the next level." Johannes Ulrich, CEO of Hofmann, commented:"Under the ownership of Pricoa Capital Group we successfully turned around thebusiness in a difficult market environment by continuously focussing on qualityand building an excellent sales force. We see very good potential for expandingour position in servicing small businesses canteens, where many companies stillrun inefficient in-house kitchens. Hofmann is also set to benefit from therising cost pressures in hospitals and the increasing number of nursing homeresidents. In HgCapital, we have found a strong partner for pursuing ourstrategy for growth." HgCapital was advised by Sal. Oppenheim, Lovells, and KPMG. Debt financing wasprovided by HVB. For further information HgCapital Dr. KarstenHartmann +49 (69) 2470 3717 karsten.hartmann@hgcapital.netPhilipp Schwalber +49 (69) 2470 3712 philipp.schwalber@hgcapital.net -------------------- Pricoa CapitalGroupAlice Moeller +49 (69) 9552 8799 alice.moeller@pricoacapital.com Hofmann MenuManufaktur GmbHClemens Bettermann +49 (7930) 601 160 clemens.bettermann@hofmann-menue.de Maitland (for HgCapital) Dr. Axel Ludeke +44 (20) 7379 5151 aluedeke@maitland.co.ukPeter Ogden +44 (20) 7379 5151 pogden@maitland.co.uk This information is provided by RNS The company news service from the London Stock Exchange