Greenyard to acquire Polish mushroom substrate firm

Fruit and vegetable supplier Greenyard has agreed to acquire Mykogen Polska (Mykogen), a Polish manufacturer of mushroom substrate.

Mykogen has four production facilities in Poland and Ukraine.

A value-added raw material used in mushroom production, substrate is becoming essential in producing quality mushrooms in Central and Eastern Europe.

Mykogen’s operations are mostly located in Poland, which is the largest mushroom producer in Europe.

Greenyard has agreed to pay approximately €93m in cash for this acquisition, which will be funded from its existing credit facilities.

The transaction is expected to close in the second half of this year after obtaining regulatory and third party approvals, and fulfilling customary conditions.

Mykogen is currently owned by a subsidiary of Abris CEE Mid-Market Fund II, a fund advised by Abris Capital Partners.

With the acquisition of Mykogen, Greenyard expects to further relationship with mushroom growers and become one of the key suppliers of substrates.

In addition to gaining access to hand-picked and mechanically harvested mushrooms, the deal will also bolster Greenyard's presence in the mushroom marketplace and create opportunities for cross-divisional synergies with the fresh, frozen, prepared (Lutèce) and horticulture divisions within Greenyard.

In the last four years, Mykogen’s sales has grown by more than 8% per annum, and sales are expected to reach €40m in FY 2017.