The best time to take over companies in Germany. Poles bought a manufacturer with half a century of tradition
We are used to the fact that someone from abroad brings capital to us and buys companies to develop them and later derive profits from it. The proportions are such that direct investments of Polish companies in shares of foreign companies during the 12 months ending in August this year. according to the National Bank of Poland, they reached the value of PLN 4.5 billion, and foreign direct investments in Poland amounted to PLN 75.9 billion at the same time. But the situation is evolving.
The first thing is that the Polish zloty has recently been a very solid currency. During the year, it strengthened against the dollar by 9% and against the euro by 2.3%. And since the zloty is stronger, it means that, for example, zloty can buy more euros than a year ago. Not only does this make holidays abroad cheaper for Polish tourists, but also investment opportunities appear for entrepreneurs looking to enter foreign markets.
This was noticed by Poland, for example Trend Group, which took over the German manufacturer of candles, fragrance products and decorative elements Gala Group at the end of September. The German company was headed by a Pole, Dawid Wróbel.
The Polish group is 30 years old, and the German one is over 50 years old. The direct acquirer is Trend Glass, which employs 607 people and is taking over a company with 4,000 employees. employed people. Trend Glass is a supplier of household, decorative and utility glass, a supplier of Carrefour and Tesco to 46 countries around the world.
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— The acquisition of Gala Group is a milestone in our European expansion. We gain access to new product categories, global distribution channels and valuable know-how in the field of international brand management. Additionally, it enables the building of strong synergies in the field of production and distribution, which will contribute to the further development of our group and strengthening our market leadership position – emphasizes Łukasz Bernady, president of Trend Glass, a company from the Trend Group.
Where does the capital come from?
The transaction is financed by PFR and CVI funds. The latter manages assets worth one billion euros, which it invests in private debt.
— We believe that the current moment is a unique window of opportunity for Polish investors strategically looking at the markets of Western Europe. Of course, economic challenges cannot be ignored, but this economic slowdown, combined with… a growing succession gap in the German sector of medium-sized companies, creates ideal conditions for takeovers – Olaf Hofses, investment director at CVI, commented to Business Insider.
A succession gap is a situation when the owner of a family business that has been built over the years decides to sell it because there is no successor who could take over the company.
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– More and more mature, thriving businesses are looking for successors, and Polish companies that have proven their strength are becoming attractive partners – he added.
The decision to finance the acquisition of Gala Group – a leading European candle manufacturer – was, according to him, “strategically motivated”. Germany is a key market in Europe and an export gateway.
Gala Group has companies including: in the USA, Great Britain, India, Germany and Hungary.
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Gala Group
— 100 percent the funds needed to finance this transaction were provided by CVI and PFR in a 50/50 ratio. We have decided that the amount of the transaction itself will not be disclosed, but it is worth saying that as a result of the merger of both groups, an international organization will be created with total revenues of nearly PLN 1 billion, explained Olaf Hofses.
Trend Glass had PLN 402 million in revenues in 2024. The family nature of the Trend Group (Bernada family) meant that, not wanting to dilute the capital, they decided to issue private bonds and not, for example, shares on the public market.
— This transaction was of key strategic importance from the point of view of the Trend Group, for which Gala Group has been one of its key clients for many years. For the Trend Group, this transaction is another step in its ambitious expansion strategy into international markets, which will allow it to significantly expand its product portfolio, increase its geographical reach and creating synergy within the global distribution network Hofses added.
The availability of forms of financing such as private debt bonds and the opportunity to take advantage of the PFR and CVI offers provided the necessary capital base in this case. But this is not the only case of Polish companies going abroad and seizing emerging opportunities.
Polish companies enter Germany
Polish company Colian, owned by the Kolański familythe producer of Grześki, Jeżyki and Śliwka Nałęczowska wafers, this year joined forces with the German company Gubor Schokoladen. The merger of two powerful national players will create an entity that intends to compete with giants on European markets.
Gubor Schokoladen owns brands such as Sun Rice, Rubezahl, Gubor, Friedel, Eichetti and Pomorskie Pralinki. The German manufacturer is also known for seasonal products, such as chocolate figurines – Santa Clauses and Easter Bunnies. Both companies have in common not only the production of sweets, but also the family nature of the business. Total employment in the combined structure will be 4,000. 200 employees, of which 2,000 per Polish company. 500 employees.
In May this year Wirtualna Polska has finalized the purchase of the tourist Invia Group SE. Although it is a Czech company, it has a strong presence on German-speaking markets. The value of the transaction is as much as EUR 243 million.
In January this year The Polish group Transition Technologies PSC took over the German company x-Info Wieland Sacher. It specializes in data analysis and production solutions for the automotive sector. “The acquisition will significantly increase our capabilities in the area of production digitalization. Close cooperation with x-Info will allow us to develop synergies that will create new development opportunities for both companies. Thanks to personalized solutions and a tailored approach, we can operate more effectively and position ourselves as a leading player in the digital production industry” – said Stefan Zeiler, managing director of TT PSC Germany. Last year, the Polish company had PLN 238 million in revenue and over PLN 14 million in net profit.
The largest Polish investments in Germany so far are the Star station network taken over by Orlen and the construction of a modern salt works in 2021 by the flagship company of Sebastian Kulczyk's holding, Qemetica (formerly Ciech), which spent EUR 140 million on it. But that happened years ago. Now, not only giants, but also medium-sized companies that have already achieved a high level of development in Poland and want to expand abroad are looking more and more boldly in the West.
The expansion of Poles in Great Britain
Germany is not the only territory where Polish private companies want to develop. Almost a year ago, Poland The eSky Group took over the British travel agency with 180 years of tradition, Thomas Cook. “The goal is to continue working on profitability in 2025, which will be possible, among others, by automating processes and improving margins as a result of launching a wide range of additional services known to eSky customers. Moreover, the implementation of our solutions will bring significant savings to the British brand, which will help to significantly improve profitability,” said Łukasz Habaj, president of the eSky Group at the time. The eSky Group made the investment decision just when its domestic market recorded a 20% decline in turnover in 2024. up to PLN 445 million and a net loss of almost PLN 20 million.
Also almost a year ago we wrote about the takeover of the hundred-year-old the British company Andover Trailers by the Polish Emtech. “The motivation for the sale by the owners was the problem of succession. They felt responsible for ensuring that a brand with traditions would continue to exist and develop – since the children did not want to take on this mission, they started looking outside. The problem was not the lack of orders or profitability, but strictly the lack of a team that would head a thriving plant,” Adam Duda, the president and indirectly the main shareholder of Emtech, told us.
At the end of 2024, the producer of smoked salmon also took over Suempol from Bielsk Podlaski, the British company Copernus, based in Hull — one of the largest suppliers of fresh fish on the Islands. Copernus was established in 1980, i.e. 10 years earlier than the Polish company, but Suempol grew faster. In 2023 (the latest available data), Suempol had over PLN 1 billion in revenues and over PLN 16 million in net profit.
Other markets
In October this year The Polish Tutore Group, developing educational solutions based on artificial intelligence, took over the Spanish Grupo Vaughan — a brand that has been associated with language learning in Spain for over four decades. The transaction amount was EUR 17 million. The Tutore Group achieved PLN 235 million in turnover in the 2024/25 financial year compared to PLN 140 million a year earlier. Grupo Vaughan leads nine language schools in the largest Spanish cities, online courses, language camps and own media: Vaughan Radio and television programs.
An investment of as much as USD 420 million. in Turkey was carried out by a company listed on the Warsaw Stock Exchange Benefit Systems. It took over the local leader in the fitness industry and will also allow it to develop the MultiSport program on that market. PLN 800 million of this amount is debt financing.
It took over two factories in the Netherlands and the USA in the fourth quarter of last year. for USD 310 million the above-mentioned Qemetica from Sebastian Kulczyk's holding. The transaction includes plants producing precipitated silica in Lake Charles, Louisiana and Delfzijl in the Netherlands (PPG Industries Delfzijl BV based in Farmsum). “We were looking for a company in which we could add value, invest and grow, based in the United States, owning 100% of the shares or a controlling stake, thus expanding our value chain. This transaction, which meets all the criteria mentioned, means that once the new business is finalized and fully integrated, we will be closer to achieving our strategic goals: developing sources of growth other than soda calcined, geographical and product diversification and significant expansion of our global presence thanks to revenues from new markets – said Kamil Majczak, president of Qemetica.
Trans Polonia, a company listed on the Warsaw Stock Exchange, also invested in the Netherlands. June 17 this year a conditional 100% purchase agreement was signed. shares in the share capital of Nijman/Zeetank Holding BV based in Spijkenisse in the Netherlands for no more than EUR 35 million. N/Z group is qualified provider of logistics solutions for liquid chemical raw materials, fuels, oils, gas (LNG) and glass. The Dutch company has over 60 years of experience in the logistics industry, and its revenues last year were the equivalent of PLN 300 million. This is more than Trans Polonia, whose turnover amounted to PLN 221 million.
Foreign investments and the use of opportunities by Polish entities depend on access to capital. The activities of PFR and the developing forms of private debt financing allow us to take advantage of these opportunities. Now the question is whether these investments in Germany or Great Britain will bring Polish owners profits greater than the cost of the capital employed.
Author: Jacek Frączyk, editor of Business Insider Polska
