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29
October 2024

Poland Expands Into UK

Poland continues to surprise and astonish. Penteris founder and Head of Real Estate Andrzej Tokaj looks at some major UK deals that have surprised some and astonished many…

Polish companies are making notable strides on the global stage, securing key UK acquisitions that have strengthened their international presence across a variety of sectors. These moves highlight Poland’s increasing importance as a business hub and bode well for the future.

Poland Finds British Opportunities

Post-Brexit, the UK government is attempting to make tender proceedings easier for foreign companies and this appears to be an opportunity Polish companies have grabbed with both hands. Polish businesses are taking advantage of UK loans for investors which are much easier to secure than in Poland.

The growth of Polish export to the UK appears to be coming from larger exporters that have successfully replaced goods from Western European SMEs which no longer trade with the UK because of frictions arising due to the Brexit.

This is highlighted by the UK Department of Business and Trade 2023 data which showed that Polish exports to the UK rose 14% year-on-year, giving Poland the chance to become one of the UK’s ten most important trading partners in the years to come.

British Engineering Gets Polished

Emtech, a Polish engineering firm, recently acquired Andover Trailers, a UK company renowned for producing platforms capable of transporting military vehicles, such as tanks. This acquisition is supported by Emtech’s state-of-the-art 50,000 square metre production facility, enabling the company to expand its role in the global defence industry. Emtech’s move aligns with growing global demand for advanced transportation solutions, especially within defence and heavy industries, placing the company in a strong position for future growth.

Polishing Off British Food & Retail

In the food sector, Polish seafood company Suempol has taken over Copernus, one of the UK’s leading fish suppliers. With a portfolio of 600 products and an annual revenue exceeding £30 million, this acquisition strengthens Suempol’s position in the highly competitive European seafood market. The UK’s ongoing demand for high-quality seafood makes this a strategically significant move for Suempol, securing its long-term presence in a major market while enhancing Poland’s reputation in the food industry, especially considering the fact that the value of these exports from Poland to the UK has risen this year by 2.6% (unlike countries like Germany, France, Netherlands, Ireland, Sweden, Austria and Portugal where exports to the UK have fallen).

This follows in the footstep of Polish Pepco’s acquisition of British Poundland several years ago. Pepco Group has gone from strength to strength announcing plans for 400 new stores around Europe and the announcement in late 2023 that the group’s revenue had risen by 17.7% to approximately £4.88 billion.

British Manufacturing Getting Polished

In the logistics sector, Wielton, Poland’s largest trailer manufacturer, has completed the £26 million acquisition of British company Lawrence David, a leader in the trailer market. This acquisition not only grants Wielton full control of a key player in the UK but also bolsters its market share across Europe. Wielton’s purchase follows a series of strategic expansions that have made it a top-10 global trailer manufacturer, further enhancing Poland’s standing in the logistics and manufacturing industries.

Polishing Up British Tourism & Logistics

In a major development in the tourism industry, British regulators have approved the acquisition of iconic travel brand Thomas Cook by Poland’s eSky Group. This move allows eSky to expand its reach into the UK market and beyond, capitalizing on Thomas Cook’s well-established brand and customer base. This milestone marks eSky’s growing influence in the international travel sector and underscores Poland’s increasing role in global tourism and digital travel services.

Another piece of fascinating consumer news has been the very recent acquisition by Poland’s InPost of UK’s Menzies giving InPost ability to scale at speed in the UK to match increasing consumer demand – serving the largest e-commerce market in Europe. InPost acquired the remaining 70% stake in Menzies Distribution Limited in an all-cash transaction valued at £60.4 million.

Destination Poland

These strategic acquisitions in the UK which span defence, engineering, manufacturing, food, logistics, and tourism not only reflect the strength and ambition of Polish companies but also present exciting opportunities for international investors. With major shifts in power in the West and with geo-politics playing an ever more powerful role in the global economy, Poland continues to assert itself in key global markets and its strength as an investment destination grows ever more compelling.

For more opportunities, contact:
Andrzej Tokaj (Senior Partner)
Raf Uzar (Head of Communication & Development)