Georgoudis is looking forward to tripling its sales abroad over a five-year horizon and to opening new markets through the synergies that will result from the deal with AG Olives Group, the No. 1 table olive company worldwide.
As FnB Daily is informed, as part of the deal, the Spanish group acquires an active, but not majority, stake in the Greek company, as well as representation on the board of directors.
PARIS GEORGOUDIS TAKES OVER AS CFO
However, the management remains in Greece, and there will be no substantial changes in the management, with Nelos Georgoudis continuing as CEO and his son, Paris, taking over as CFO. Otherwise, Georgoudis' focus on premium speciality table olives, including organic, and high value-added small packs remains unchanged. It was this business profile, moreover, that seems to have attracted the interest of the Spanish and triggered a strategic partnership, which seems to have come at the right timing for both sides.
Aceitunas Guadalquivir (AG Olives) had aspirations of creating a vertically integrated table olive group with a global reach in the context of a plan that began to unfold in 2021 with the entry of Alantra Private Equity. This was followed in 2022 by the acquisition of California-based Bell-Carter, which is behind Lindsay Foods, one of the two largest table olive brands in the US. However, as part of the business plan, AG Olives was looking to expand its portfolio into the more premium part of the market identified with Greece, namely Kalamata, Chalkidiki and Conservolia varieties.
At the same time, Georgoudis, while on a growth trajectory, was looking for partnerships that could accelerate its investment pace and help promote its products in even more markets and sales channels abroad. As sources with knowledge of the contacts and discussions between the two sides told FnB, AG Olives' interest met the conditions set by the management of Georgoudis SA, while the very good chemistry between the CEOs of the two companies, Nelos Georgoudis (Georgiadis SA) and Francisco Escalante (AG Olives), played its role.
WIN-WIN AGREEMENT
Georgoudis, founded in 1897 and based in Volos, exports 98% of its production, having a presence in retail chains worldwide with the Parthenon brand, with the USA currently being its largest market. Its position on the other side of the Atlantic is expected to be strengthened, with the special weight that its participation in the AG Olives Group will give it.
The latter, for its part, produces over 80,000 metric tons of olives annually and incorporates in its portfolio a top-quality brand with international recognition.
INVESTMENT OF €2 MILLION
Over the last five years, the company has invested €4 million in machinery and €1.5 million in plant and storage facilities. At the moment, as FnB Daily has been informed, an investment program of €2 million is underway.
In 2024, according to reports, it reportedly recorded a growth rate of 15%, with its turnover reaching record levels of €15.5m and its EBITDA of around €1.5m. Based on the business plan that has been drawn up, the goal is to triple foreign sales in the next five years.
GROWTH ORIENTATION
"Representing the third generation of my family's 128-year legacy, it was clear that we share common values with the AG Olives Group, as we both always put our partners, producers and employees first
our employees," said the company's CEO, Nelos Georgoudis, adding: "This alliance will strengthen our relationships with existing customers and expand our product categories. Our roots are deep in Greek soil, but our focus has always been on growing internationally to support our community and bring excellent and recognized Greek olives to tables around the world."
For his part, Francisco Escalante, CEO of AG Olives Group, said he was excited "because we found the perfect match, a partner who values family tradition, sustainability and cares for his people as much as we do, while innovating and integrating technology with the ambition of continuous improvement. Together, we will elevate table olives worldwide."
