H2 - Alfa Groep Holding

Alfa Groep Holding

Company: Alfa Groep Holding B.V.
www.alfagroepbv.nl, www.alfagroepverspreidingen.nl,
www.alfa-groep.nl
Date investment: August 2011
Investment: Profit improvement, Buy-and-build
Status: Current investment

Alfa Groep Holding (‘Alfa’) is a national and regional distribution company for unaddressed leaflet and free newspaper distribution. Alfa has revenues of about € 65 million, 375 employees and more than 20.000 deliverers. Alfa directly controls 60% of the Dutch distribution, where the balance is distributed via its proven distribution partners.

Unaddressed mail is a critical part of the marketing mix, especially retailers, due to its high response rates and positive attitude from consumers. The industry structure of the unaddressed mail market, € 230 mln in size, is healthy and provides new opportunities for growth.

Alfa strengthened its position in 2011 through several acquisitions. RVN, RVE, Tip Top, Garant and TVO are now part of Alfa. Merging the distribution companies allows the group to further strengthen its proposition and the quality of its network and organisation. The management teams of the acquired companies remain actively involved in the new organisational structure. With these steps Alfa plays on the changes in the market for unaddressed mail, positioning itself as the alternative on the Dutch market.

H2 acquired a controlling position in Alfa. The investment thesis is to increase profits by increasing sales as well as improving operational efficiency.

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