BDO and doubleYou Partners Advise on Genesis Capital's Successful Acquisition of HoReCup
BDO and doubleYou Partners Advise on Genesis Capital's Successful Acquisition of HoReCup
case study | Transaction Advisory, Tax & Legal
Advising on the Sale of HoReCup to Genesis Capital
Genesis Capital successfully completed the acquisition of HoReCup, one of the leading napkin manufacturers in Central and Eastern Europe. The transaction, which closed on 13 February 2025, was led on the seller’s side by advisors from BDO and doubleYou Partners, supported by BDO Legal and BDO’s tax team.
The Transaction
Czech investment fund Genesis Capital acquired HoReCup, a.s., with the aim of supporting the company’s further growth and adding another Slovak business with strong development potential to its investment portfolio.
Based in Nitra, HoReCup is a highly automated manufacturer and one of the leading producers of napkins in Central and Eastern Europe. Almost all of its production is exported, primarily to Western European markets including the Benelux countries, Scandinavia, the United Kingdom and Germany.
A New Stage of Growth for HoReCup
“We believe that, with an experienced investor such as Genesis, we will be able to increase our turnover in European markets and be even more successful in expanding our production capacity and, of course, our human resources. The experience of both teams under one umbrella will allow us to better assess risks and, above all, increase labour productivity, which is one of the most important indicators of competitiveness in today’s markets.”
BDO’s Role in the Transaction
The entire transaction process on the seller’s side was managed by experts from BDO and doubleYou Partners. The mandate covered the transaction from initial preparation through investor engagement, due diligence and negotiations to final closing.
Integrated Legal and Tax Support
The transaction was supported by BDO Legal, which provided legal advice on key aspects of the deal, including negotiation of the transaction documentation, corporate changes connected with the transaction and the buyer’s debt financing, as well as changes in shareholder relationships.
BDO’s tax team provided tax support throughout the transaction and addressed the tax matters required for its completion.
Genesis Capital’s Perspective
“In less than twenty years since HoReCup’s establishment, the founders and management team have succeeded in building an efficient, successful and dynamic company. We are delighted to join forces with them and support HoReCup in its continued growth and development. We believe that, together with the HoReCup team, we can use our experience to accelerate the company’s entry into new markets, continue improving its technological capabilities and deliver even more value to its customers.”
According to Genesis Capital, the investment is also aligned with its strategy of supporting Central European market leaders with strong growth potential while addressing succession and generational change.
Transaction Advisor’s Perspective
“ACCA textbooks introduced me to the theory of a ‘niche player’ strategy years ago, but I only truly understood it when I saw how a factory in Nitra could supply leading hotels, restaurants and cafés across Europe with branded napkins. A highly focused niche strategy, a state-of-the-art factory, a high-performing team and a reputation built over decades make HoReCup a compelling business.”
Alexander Šrank, who led the transaction process on the seller’s side on behalf of BDO and doubleYou Partners, also highlighted the strong fit between Genesis Capital and HoReCup’s founders, as well as the transparent and constructive approach maintained throughout the transaction.
About HoReCup
Founded in 2006, HoReCup initially focused on the production of paper coffee cups in Kysucké Nové Mesto. The company later relocated to Nitra and expanded its production to include napkins.
HoReCup focuses on quality, hygiene and environmental responsibility. Its production lines are highly automated and use modern technologies across the production and storage process. In 2023, the company received the Diamonds of Slovak Business award and is one of the largest napkin manufacturers in Central and Eastern Europe.
About Genesis Capital
Genesis Capital is a private equity fund group that has supported the development of small and medium-sized enterprises in Central Europe, particularly in the Czech Republic and Slovakia, since 1999.
According to the information provided for the transaction, the group had managed six funds with a total volume exceeding EUR 350 million and invested in more than 60 companies across various sectors. Investors in its funds include institutions such as the European Investment Fund, the European Bank for Reconstruction and Development, Česká spořitelna, Amundi Czech Republic and Kooperativa Insurance.