WMS backs FruchtExpress MBI

Harriet Matthews
15 January 2021

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Wachstumsfonds Mittelstand Sachsen (WMS) has backed the management buy-in of fruit and vegetable wholesale business FruchtExpress, backing the company alongside incoming managing director Holger Schmitz.

The deal sees vendor Henning Schulz sell 100% of the company's shares. Schulz is to remain on board in an advisory capacity, according to a statement.

WMS plans to seek add-on opportunities to support the company's growth and to establish its market position in Germany, the GP said in the same statement.

WMS is deploying equity via WMS III, which held a final close in 2020 on €85m. The fund is backed by Saxony-based organisations and institutional investors, including the Federal State of Saxony, Sächsische Aufbaubank and the Sparkassen of Leipzig and Chemnitz, according to a statement issued in January 2020.

The fund invests in Saxony-based Mittelstand businesses, focusing on companies with revenues of at least €5m. The GP provides equity investments of €1-8m, but the firm can make larger investments via network partnerships. The GP generally holds its investments for five to eight years.

The GP's recent acquisitions include dust and gas emission measuring systems business Dr Födisch Umweltmesstechnik, in which the GP invested alongside Nord Holding.

Company
Founded in 1991, FruchtExpress is a fruit and vegetable wholesaler. The business comprises two companies: FruchtExpress TS and FruitConcept. The company employs 120 people and reports revenues of approximately €35m. It reported revenues of €27m in 2018, according to its publicly available accounts. FruchtExpress is headquartered in Altenburg, with additional operations in Leipzig.

People
Wachstumsfonds Mittelstand Sachsen – Harald Rehberg, Stefan Leermann (managing directors); Thomas Mackiol, Christian Lenk (investment managers).
FruchtExpress – Holger Schmitz (future managing director).

Advisers
Equity – Weidinger Richtscheid, Martin Leibiger (legal); Schlarmann Ahlberg, Joachim Schlarmann (financial due diligence, tax); AFC Management Consulting, Otto Strecker (commercial due diligence).