EOS Hellenic Renaissance Fund (EHRF) invests in Mentekidis S.A (Dios & Seli)
EHRF, managed by EOS Capital Partners (EOS), announces its eleventh investment of c.€11m in Mentekidis S.A. (Dios & Seli), a company active in the production of natural mineral bottled water under the brand names Seli and Dios.
About Mentekidis S.A
Mentekidis S.A is a family-owned business founded in 1992 in Kozani, Greece. The company has a very strong sales network in Greece (mainly in Northern regions) while its products are of high-quality standards (international quality certifications ISO 9001:2015, ISO 22000:2005).
The water source ASSOS is recognized and certified by the European Union. It is a source of natural mineral water flow that comes not from drilling, debouching fresh water rich in trace metals from rocks exposed in pristine highlands of Mount Vermion. The water Seli is a naturally occurring mineral water with low sodium content, an element that ranks high on the preference of athletes that follow intensive workouts. In 2012, the Company decided to exploit a new water source in the prefecture of Pieria (near Olympos mountain). On that front a new plant was established in Karditsa, Pieria which bottles the water Dios, which comes from proprietary sources that have resulted through drilling, have sufficient water supply, and offer 60 m3 / hour.
The bottled water market is quite concentrated to a small number of companies with Mentekidis S.A. (Seli & Dios brand) controlling a market share of c. 9.0%.
The Company invested c. €8.7m in 2019 and completed one state of the arts modern facility for the “Dios” bottled water brand in Karitsa, Pieria. An energy class “A” building of 7,000m2 on a 20,000m2 plot, fully equipped with machinery of the latest technology with 3 production lines, with vast potential in bottling glass and PET plastic of various content at high speed under extreme sanitary conditions, in order to ensure a competitive high-quality product, always in accordance with international standards. It is also noted that the new production facility has photovoltaic panels on the rooftop of the factory which generate c. 25% of total energy consumption.
The Company achieved significant sales of c. €16.7m in FY22, depicting a 5-year CAGR of 10.9% (FY17-FY22), while EBITDA reached €2.2m in FY19 and remained relatively flat up to FY22.
Daily quality tests, run by Company’s expert staff in the modern microbiology laboratories on its new premises, combined with collaborations with independent laboratories, according to the ISO and HACCP requirements that certify the company, and guarantee the highest quality and safety standards of the final product.
The Company has a strong presence in the domestic market (mainly in Northern Greece) with domestic sales accounting for +95% of total sales, while Company’s exports account for less than 5% (mainly Balkans and Germany).
The Company is aiming to expand exports in other European countries mainly with Dios brand. Dios is already launched in Germany as a test country, while there are further expansion opportunities for both brands in the Balkans (Albania, Romania, North Macedonia) and Cyprus.
Dios and Seli brand mainly covers the Northern Greece territory and there is an opportunity to expand south and penetrate the market further using solid distribution networks and advertisement.
EOS is the external Alternative Investment Fund Manager of EHRF, a private equity fund with approx. € 150m in AUM, focusing on growth capital investments in Greek SMEs across all sectors. The key cornerstone for the creation of EHRF, was its participation in the Equifund Fund of Funds program. EquiFund investment platform is an initiative created by cooperation between the Hellenic Republic and EIF. It is financed by the Greek ESIF Fund of Funds TAESYM under the European Union / European Regional Development Fund / Operational Programme EPANEK, the EIF and private investors, with the objective to facilitate access to finance, mainly to SMEs, by developing the Venture Capital/Private Equity (“VC/PE”) in Greece in cooperation with selected Financial Intermediaries.
EOS investment strategy focuses on SMEs with a healthy financial position and a solid value proposition looking for capital to achieve their growth potential either organically or inorganically through mergers and acquisitions.