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Varandas de Sousa
Divested
Varandas de Sousa is dedicated to the production, marketing, and distribution of fresh mushrooms, holding a significant market share in large distribution and retail outlets due to the consistent quality of its production. It benefits from a robust customer base that ensures recurring and stable revenue. Founded in 1989, the company has 3 operational units and operates under a fully integrated model throughout the value chain of its production lines.
Varandas de Sousa holds a dominant market position with a recurring national market share of 85%, allowing it to benefit from price-setter status. The perishability of the product and high installed capacity constitute significant barriers to entry in the national market. In a situation of insolvency due to excessive group debt, the company had poor management with low levels of productivity, production control, and an inefficient logistics structure. CoRe, identifying clear opportunities for operational improvement focused on rapidly increasing productivity, secured a controlling stake of 90% of the capital, ceding 10% to a co-investor in the sector: the Sugal Group (Europe’s largest producer of tomato concentrate), and investing €7.5 million of fresh capital in the company.