BDO and doubleYou Partners led the successful acquisition of HoReCup by Genesis Capital Fund
BDO and doubleYou Partners led the successful acquisition of HoReCup by Genesis Capital Fund
Genesis Capital has successfully completed the acquisition of HoReCup, a leading napkin manufacturer in Central and Eastern Europe. The entire transaction process with it's closing on February 13, 2025, was led by advisors from BDO and doubleyou Partners, supported by the necessary tax and legal expertise from our divisions.
The renowned Czech investment fund Genesis Capital has announced the successful completion of the acquisition of HoReCup, a.s., aiming to leverage its growth potential and expand its investment portfolio with another promising company from the Slovak market. This highly automated company based in Nitra is one of the leading manufacturers of napkins in Central and Eastern Europe. The share of its goods exported to foreign markets accounts for almost the total volume of its production, with exports primarily to Western markets, especially to the Benelux countries, Scandinavia, the United Kingdom and Germany.
Ján Bendžala and Lubor Benkovič, founders of the Company, added: "We believe that, with an experienced investor such as Genesis, we will be able to increase our turnover in the European markets and be even more successful in terms of 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, to increase labour productivity, which is the most important indicator for competitiveness on the markets today."
The entire transaction process on the seller’s side was managed by experts from BDO and doubleYou Partners. Under the assigned mandate, a full range of services was provided, including an initial company analysis, valuation, and transaction preparation, as well as investor search, transaction marketing, coordination of the due diligence process, negotiation of terms, and the final closing of the transaction. Ensuring a smooth transaction was significantly supported by intensive legal advisory services from BDO Legal. Their expertise covered key aspects such as negotiating transaction documentation, advising on corporate changes related to the transaction and the buyer’s debt financing, as well as guidance on changes in shareholder relations. Equally crucial was the contribution of BDO’s expert tax team, which comprehensively addressed all tax matters necessary for the successful completion of the transaction.
"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 in cooperation with the HoReCup team, we can utilize our experience to accelerate the Company's entry into new markets, continue to further improve the technological state of the art of the production and deliver even more value to its customers. This investment also perfectly aligns with our strategy of supporting Central European leaders with high growth prospects, combined with addressing succession issues and generational change. We look forward to our future together and the opportunities this partnership brings." Tatiana Balkovicová, Senior Investment Director at Genesis Capital Equity, commented on the transaction.
Alexander Šrank, a transaction advisory expert who led the entire process on the seller's side on behalf of BDO and doubleYou Partners, added his perspective on the transaction:
"Ages ago, ACCA textbooks taught me the theory of a “niche player” strategy but I only really got it when I saw how a small factory from Nitra can supply half of Europe’s best hotels restaurants and cafes with branded napkins. Napkins that are part of the tabletop in front of the guest the entire time of their visit, hence the quality actually matters very much. Laser focused niche player strategy together with state of art factory, high performing team and the reputation built iver decades with the clients make HoReCup an exciting proposition. Genesis understood it the best from all potential investors and sent a team that had immediate chemistry with the owners since the first site visit. They have also created a great base for their future cooperation in their common new business with the Vendors by being honest, fair and transparent throughout the entire transaction process."
About HoReCup, a.s.
Founded in 2006, HoReCup initially focused on producing paper coffee cups in Kysucké Nové Mesto. The company later relocated to Nitra and expanded its production to include napkins. HoReCup emphasises quality, hygiene, and environmental responsibility. Its production lines are highly automated, utilising state-of-the-art technologies from manufacturing to storage. 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 been supporting the development of small and medium-sized enterprises in Central Europe, particularly in the Czech Republic and Slovakia, since 1999. To date, it has managed six funds with a total volume exceeding EUR 350 million and has invested in more than 60 companies across various sectors. Investors in these funds include renowned institutions such as the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), Česká spořitelna, Amundi Czech Republic, Kooperativa Insurance, and others.