Project Description
The EBRD equity investment of EUR 25 million supported the acquisition of Zabka Polska S.A. ("Zabka"), the leading modern convenience retailer in Poland, by CVC Capital Partners, one of the leading private equity groups globally, from its previous owner Mid Europa Partners.
Project Objectives
By becoming a shareholder in Zabka, which through its franchise model works closely with and supports small business owners and entrepreneurship on a large scale, the Bank will encourage private entrepreneurship and help address issues of insufficient access to financing by small businesses and start-ups. The EBRD will support future value creation, in particular in the areas of green energy / environmentally friendly investments.
Transition Impact
ETI score: 60
The transition impact of the Project stems from support to private entrepreneurship and setting standards in corporate governance with franchisees, as well as setting standards in resource efficiency and "green innovation", through proposed Green Economy Transition ("GET") investments and other initiatives.
Client Information
HEKET HOLDING SARL
Zabka is the 6th largest food retailer and leading modern convenience chain in Poland with 4,600 franchise stores operated by 3,200 entrepreneurs.
EBRD Finance Summary
EUR 25,000,000.00
EUR 25 million equity investment alongside funds managed by CVC Capital Partners.
Total Project Cost
EUR 1,055,000,000.00
N/A
Environmental and Social Summary
The Project has been categorised B in accordance with the 2014 Environmental and Social Policy. The environmental and social impacts related to the operation and construction of retail stores and distribution centers are readily identified and can be addressed through appropriate mitigation and management procedures. Environmental and social due diligence was undertaken by ESD based on the review of the third party consultant's report covering the environmental and social performance of the company's operations and on the Corporate level discussions with Management representatives conducted by ESD.
Based on the third party review and company's representation, the ESDD confirmed that the company operates its business in line with relevant environmental permits, occupational health and safety and labor legislation. The company has a comprehensive Integrated Management System (IMS), which includes a Quality Policy and Good Manufacturing and Good Distribution Practices (covering quality, food safety and HACCP) along with environmental management policies and operational standards for the sites. The company is certified to the externally recognized standard ISO 22000 for distribution and product development. The retail stores are covered by HACCP procedures, and are regularly audited by the company for generic HACCP and store standards with a separate audit team covering the food safety audits since 2016. It is noted that due to the franchise model, best practice food and energy efficiency procedures are implemented by the retail store operators under incentives, not as a compliance model. The company is committed to implementation of an environmental management system (EMS) in line with ISO 14001 standards and has already developed relevant policies. The current team responsible for the IMS is capable of the implementation of the Project in line with EBRD Performance Requirements. The company systematically works on reducing food waste and packaging waste. There is a dedicated H&S Department responsible for the supervision of any changes in legal regulations and the associated implementation of updated procedures and internal regulations; undertaking audits and assessing internal controls, plus supervision and consulting support regarding H&S to the internal H&S Committee; and evaluation and/or modification of worker-related risk for all types of work performed across the company's operations. The company's H&S performance is good. The company is considering implementation of the OHSAS 18001 compliant H&S management system.
The company has a comprehensive system for management of internal labor relations and HR. The company has assessed their risks related to supply chain and includes relevant standards in regards to quality, food safety, environmental and labour requirements in their contracts. For the products from outside EU the company requires internationally recognized certifications (Rainforest Alliance) or company conducted relevant audits. The company has recently formed an internal CSR team focused on the support local communities, responsible sale of food and alcohol, support of entrepreneurship, environmental protection.
An ESAP has been developed to formalize the company's commitment to implementation of environmental, H&S management and energy management systems, CSR reporting, formalization of internal HR processes, and strengthened procedures in relation to monitoring of franchisees and provision of additional training. The company will report annually to EBRD on environmental and social performance and will be monitored by the Bank if required.
Technical Cooperation and Grant Financing
The Bank is considering supporting Zabka in advanced energy efficiency technologies and various other green innovation initiatives.
Company Contact Information
Krzysztof Krawczyk
kkrawczyk@cvc.com
http://www.cvc.com/
Implementation summary
The EBRD equity investment of EUR 25m made in 2017 supported the acquisition of Zabka Polska S.A. ("Zabka"), the leading modern convenience retailer in Poland, by CVC Capital Partners, one of the leading private equity groups globally, from its previous owner Mid Europa Partners. The Project supports a future value creation, in particular in the areas of green energy/environmentally friendly investments.
Zabka is the 7th largest food retailer and the leading modern convenience chain in Poland. The Investment helped the Company grow its store network from ~4,500 to ~6,800 to date and increase partnership to ~5,375 franchisees from the original ~3,000 small business owners. In October 2020, Zabka completed the remodelling of all of its stores. The change had a positive impact on brand positioning, sales efficiency and an increase in the number of customers.
The transition impact of the Project stems from support to private entrepreneurship and setting standards in corporate governance with franchisees, as well as setting standards in resource efficiency and "green innovation", through proposed Green Economy Transition ("GET") investments and other initiatives.
Zabka continues to focus on sustainability and energy efficiency areas. The Company implemented various solutions across its store network to reduce energy and fuel consumption. Zabka launched a mobile app for franchisees to strengthen partnerships and introduced initiatives to improve waste management. The Company provides ESD reporting.
PSD last updated
01 Feb 2021
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
