Stock Spirits Group describes itself as is a leading central and eastern European branded spirits producer whose principal product category is vodka. It has the largest market share for spirits in Poland and the Czech Republic and is the leading vodka company in both countries. It is also the leader in the vodka-based flavoured liqueurs and limoncello categories in Italy, has the largest market share for the bitters category in Slovakia and the largest market share for imported brandy in Croatia and Bosnia & Herzegovina.
Business Highlights are described as:
- Successful business model utilising global fast moving consumer goods (“FMCG”) best practices and local insight;
- Highly experienced management team with extensive multinational experience in leading global FMCG and alcoholic beverage companies;
- Proven innovation capabilities through strong and effective New Product Development Programme;
- Strong brand portfolio with market leading positions and brands in core markets, including Polish vodka market shares of 37.4%, 37.6% and 37.7% in April 2013, May 2013 and June 2013, respectively (on an MAT (moving annual total) basis) (according to Nielsen);
- Leading presence in Polish and Czech markets with attractive characteristics including high per capita spirits consumption and potential for long-term economic growth;
- Broad sales and marketing capabilities and strong distribution network, exclusive distributor of Beam Inc.’s portfolio of brands in Poland;
- Proven historic profit growth profile and highly cash generative;
- Modernised well-invested production platform with capacity to support further growth;
- Platform for consolidation in the region, with two acquisitions completed in the last 12 months and a number of targets identified and evaluated in both existing and new territories
- Revenue for HY 2013 of €153.1 million (HY 2012 : €134.4 million), gross profit in HY 2013 of €79.2 million (HY 2012 : €65.1 million) and Adjusted EBITDA for HY 2013 of €34.3 million (HY 2012 : €28.5 million).
Stock CEO Christopher Heath said: “We are very pleased to have developed strong leadership positions in the attractive Polish and Czech spirits markets as well as in important spirits categories in our other core markets. This gives us a great platform to realise our goal of becoming the leading spirits player across the Central European region. By leveraging the strength of our core brands and our highly successful, innovative new product development programme, we have been able to deliver sustained organic profit growth over the past five years and an IPO is the next logical step to support the company’s ambitious growth plans. We are extremely excited about this next phase in the company’s development.”
Non-Executive chairman Jack Keenan, of Stock, said: “Stock’s management team have brought their considerable knowledge, FMCG best practices and sector experience to the business. By responding to the evolving needs of the consumers we have been able to increase market share with customer loyalty based on delivering brands that they know, trust and enjoy. The IPO will mark the next landmark in the exciting development of Stock, providing a platform for management to take Stock forward. I look forward to continuing my journey with Stock, working with the board, management and shareholders.”
The offer will comprise an offer of new shares by the company to raise gross proceeds of approximately £52 million and the partial sale of existing shares held by the group’s existing principal shareholders, being certain funds and accounts managed by Oaktree Capital Management and current and former members of management. The Oaktree shareholders are expected to remain the group’s largest shareholder following completion of the offer