Greenfood

Greenfood is a leading supplier of healthy and convenient food in the Nordic region

About the company

Greenfood was formed in the summer of 2015 through a merger between Fidelio Capital’s portfolio company Picadeli and the recently acquired STC Greenfood. The group is today a leading supplier of healthy and convenient food in the Nordic region. The main customers include some of the leading Nordic companies in the food retail, convenience and HoReCa sectors. Greenfood’s offering includes the salad bar concepts Picadeli and Daily Greens, pre-cut and washed products, healthy grab’n’go products as well as fresh fruit & vegetables. The group has sales of approximately SEK 4bn and employs about 750 people in the Nordics and in Spain.

Breakdown

Acquisition of Picadeli: 2012

Merger with STC Greenfood: 2015

Partial exit: 2016

Add-on acquisitions: 2

Sales: SEK 4 bn

Salad bar ingredients sold (annually): +15,000 tonnes

Investment Case

In August 2012 Fidelio Capital acquired a majority shareholding in Picadeli (then Salladsbaren i Sverige) from its founders after having followed the company since early 2011. The founders remained significant shareholders after the acquisition. Fidelio Capital was attracted by the low cyclicality in combination with supportive underlying trends such as focus on healthy eating, convenience and freedom of choice. At the time Picadeli had a proven and scalable business model that could be transferred to new customer segments and geographies. To further improve food safety and efficiency in store handling Fidelio ensured Picadeli invested significant resources in a new packaging solution and a digitalised salad bar. Meanwhile Picadeli continued to expand rapidly in Sweden and subsequently Finland which resulted in a rapid expansion from 200 locations in 2012 to 1,000 locations in 2014.

In the summer of 2015 Fidelio Capital acquired the fruit & vegetable group STC Greenfood which was merged with Picadeli to form the Greenfood group. STC Greenfood was active in three business areas: (1) production of pre-cut and washed salad and related products (the main ingredient in Picadeli’s salad bar concept), (2) a salad bar concept similar to Picadeli (but substantially smaller) and (3) import and distribution of fruit and vegetables in the Nordic region (retail chain-independent). Fidelio identified substantial cost synergies realisable by transferring Picadeli’s salad and fruit volumes from external suppliers to STC Greenfood as well as synergies in the operations of the salad bar concepts. There was also potential to vastly improve the customer offering by leveraging Picadeli’s installed base of salad bars, logistical set-up, and digital platform to offer the combined group’s offering. The combined company created a clear Nordic market leader and a stable partner within the fragmented industry of healthy foods.

In the spring of 2016 Fidelio divested parts of its shareholding in Greenfood to Nordic Capital which became the new main investor. The Greenfood Group has since continued its growth and profitable expansion and the Picadeli concept was launched in Denmark in 2016. Fidelio remains committed to the investment through considerable minority ownership and board representation.

Salad bar development
Vastly improved food safety, user experience and operational efficiency through digitalisation of the salad bar and launch of disposable canteens

New brand and graphic profile
Transformation from the generic brand name Salladsbaren i Sverige to now well-known Picadeli

Roll-out
1,000 new Picadeli locations in Sweden and expansion to Finland as well as preparation for further expansion (company is now present in Denmark)

Strategic M&A
Merger of Picadeli with STC Greenfood AB and acquisition of strategic supplier Mixum

New team
Recruitment of new management team and professionalization of the organisation

Aligned incentives
Broad co-investment programme launched to key employees in Picadeli and subsequently in the combined company