Pitch Best Small Cap Deal 2022: Bidfood Nederland – Zegro

Name of the deal: Bidfood Nederland acquires Zegro 
Date announced: 08 February 2022 
Date closed: 22 February 2022 
Published value: 5 – 50 million euros 
Buyer(s): Bidfood Nederland 
Target: Zegro 
Seller: L. En R.T. Prins Holding 

Involved firms and advisors 

Involved firms and advisors buy side:  
KPMG (Financial Due Diligence), Wilnis House Advocatuur (Legal Advisory Corporate M&A) 

Involved firms and advisors target:  
n.a. 

Involved firms and advisors sell side:  
Mazars (M&A Advisory), Pellicaan Advocaten (Legal Advisory Corporate M&A) 

Pitch  

Brief description deal / Deal outline  
The shareholders of Zegro sold 100% of their shares to Bidfood. Both organizations have been successfully operating in the Rotterdam region for many years and will continue to operate as independent companies. Bidfood is strengthening its position as catering wholesaler in the Rotterdam region. The cooperation further strengthens the joint position in the region, building on a strong foundation of two successful organizations. Both organizations respect each other's position in the market and fit well together in terms of culture and structure. 

Why should this deal win the Award for Best Deal Small-Cap 2022?  
The Zegro – Bidfood deal deserves a nomination because of the mutual respect of the seller and the purchaser. Bidfood kept an eye on the sellers' interest and continuously showed respect for the hard work shareholders Leon and Rene Prins have put in building Zegro as go-to horeca supermarket in Rotterdam. From the Zegro side, Bülent Sel has proven himself to be a strategic CEO with constant focus on getting the deal done while also running the daily business of Zegro together with William Domenech.  

Deal rationale:  
Both Bidfood and Zegro have a clear growth ambition and see new opportunities and possibilities for the future as a result of this step. Bidfood has a strong position within a broad group of hospitality, catering and healthcare accounts, where Zegro, a proud Rotterdam family business, has been strong in the middle and high segment of the hospitality market for 50 years. 

What is the impact of this deal for the company?  
Zegro's focus on the middle and high segment within the catering market is a nice addition to Bidfood's current customer portfolio. Bidfood and Zegro will remain as independent companies. However, it will be examined which opportunities exist if the organizations join forces in the field of logistics, digitization and product range. Apart from a wider product range and better service, little will change for their customers. 

What is the impact of this deal for the direct stakeholders?  
William Domenech, commercial director of Zegro, sees new opportunities and possibilities for the future: "With the scale that Bidfood offers us, we can further improve the offer for our customers. For both organizations, the customer is always central, and we do everything we can to increase their success'.  

Dick Slootweg, CEO of Bidfood, is proud of the agreement: 'This beautiful and locally rooted company brings a new dimension to our company, where both organizations can strengthen each other in order to serve our customers even better'.  

General director Bülent Sel of Zegro: 'Both companies respect each other's position in the market. Together we will look at how we can further strengthen our position in the region, building on the strong foundation of two successful organizations. 

 What is the impact of this deal on society?  
With the scale that Bidfood offers, Zegro can further improve the offer for its customers. For both organizations, the customer is always central and the companies do everything possible to serve their customers the best as they can. 

 What was most complex about this deal?  
‘The real estate and the shares were sold separately, so in fact we were doing two deals at once.’