The sole shareholder of GRANETTE a.s. acquired 100% share in Palírna u Zeleného stromu – Starorežná Prostějov, a.s. Merger Vision advised the buyer while creating the second largest Czech spirit producer
- Food & Beverages
- Target company
- Palírna u Zeleného stromu – Starorežná Prostějov, a.s.
- 13 private individuals
- Private investor, thesole shareholder of GRANETTE a.s.
- Our role
- Advisory to the buyer and GRANETTE a.s.
- Transaction size
Palírna u Zeleného stromu – Starorežná Prostějov (Distillery by Green Tree) represents a centuries-long tradition of spirit production in the Czech Republic. Its history goes back to 1518. Its flagship product is Hanácká vodka, a traditional Czech vodka brand. Other products include popular specialities and liquors such as Prostějovská Starorežná and Missis.
GRANETTE has been producing spirits and liquors since 1847. It supplies some of the traditional Czech brands, such as Stará myslivecká (Old Huntsmen´s) and Klášterní tajemství (Monastic Mystery), and has a strong position in the local vodka segment with its Vodka 42 brand.
The combined group of traditional Czech spirit producers has become the second largest spirit producer in the Czech Republic and the largest solely Czech-owned. The annual production volume of the group, at the time of this transaction, is 125 thousand hectolitres of spirits, representing 20% of total spirit production in the Czech Republic.
Merger Vision acted as exclusive M&A advisor to the buyer and GRANETTE a.s. on the transaction while negotiating with private individual sellers, some of them being key managers of the target company.
Following the previous successful sale of my brewing group, I decided to turn GRANETTE into one of the top Czech producers of spirits and liqueurs. To achieve this goal, we needed to acquire a broader portfolio of traditional Czech brands and significantly expand our existing production capacity. The advisory team of Merger Vision originated negotiations with key shareholders of a traditional distillery, Palírna U Zeleného stromu and managed the acquisition process. Although integration of both companies was the preferred option for both parties, the negotiations were complicated, partly due to the high number of selling shareholders. However, thanks to a repeated initiative by Merger Vision, the transaction was completed after about two years, and the second largest producer of spirits in the Czech Republic emerged.