CASE STUDY HUBERT:

LONG-TERM VALUE CREATION AND GROWTH

Case Study Hubert: Long-term value creation and growth

2 Case Study Hubert | TAKKT 2017

… TAKKT acquired Hubert, a leading supplier in the U.S. market of foodservice

equipment. Bart Kohler was President & COO of Hubert and selling the company for

the owners, the Hubert family.

At that time, Hubert generated a turnover of ~ USD 90 million.

Bart Kohler decided to stay with the company also after the acquisition.

In 2000, …

Case Study Hubert: Long-term value creation and growth

3 Case Study Hubert | TAKKT 2017

… Hubert has an even stronger position in its market, and is the core of the three TAKKT divisions

Merchandising Equipment Group (MEG), Restaurant Equipment Group (REG) and Displays Group

(DPG) which consist of 5 brands that generated turnover of ~USD 430 million in 2016 (>50% of it

online).

Bart Kohler continued at the top of Hubert until the end of 2016 when he left the day-to-day business

and became President of TAKKT America.

Today …

Case Study Hubert: Long-term value creation and growth

4 Case Study Hubert | TAKKT 2017

Strategic development:

• Expansion of the assortment

• International roll-out: First to Canada , then to Europe

• Infrastructure investments (new warehouses, solar roof installation, new webshops)

• Add-on acquisitions:

• Central Restaurant Products: Distributor of restaurant equipment and supplies

• GPA / Displays2Go: Distributor of display products

• Post-Up Stand: Distributor of customized display products

Acquisition of

Hubert

Market entry Europe

via Germany

Acquisition of

Post-Up Stand Market entry

Canada

Market entry

France

Acquisition of

Displays2Go

2000

2005

2006

2009 2010

Market entry

Switzerland

Acquisition of

Central

2009

2015

2012

Warehouse

expansions

2007

Foundation

Retail Resource

2008

2012

Solar roof installation

Hubert HQ

Opening Hubert

Asian Sourcing

2014

New Hubert

Distribution Center

2015

Case Study Hubert: Long-term value creation and growth

5 Case Study Hubert | TAKKT 2017

Turnover development (USD million):

• Hubert first was used as a platform for the establishment of a new segment (Specialty Products

Group), which was divided into the three new divisions MEG, REG and DPG beginning of 2017.

• Despite the high growth and the add-on acquisitions TAKKT succeeded in maintaining the

profitability.

2000 2016

88

~430

DPG

USA

REG

Hubert Canada / Europe, founded in 2005 / 2007-2010

Case Study Hubert: Long-term value creation and growth

6 Case Study Hubert | TAKKT 2017

2005: Market entry Canada 2006: Market entry Europe

Major investments in roll-out of the Hubert business model to new countries

Case Study Hubert: Long-term value creation and growth

7 Case Study Hubert | TAKKT 2017

2008: Foundation Retail Resource

Retail Resource was a greenfield startup that targets non-food retail establishments

Case Study Hubert: Long-term value creation and growth

8 Case Study Hubert | TAKKT 2017

2009: Acquisition of Central Restaurant Products

• Central is a distributor of restaurant equipment and supplies in the U.S.

• Annual turnover at acquisition: USD 70 million

• Annual growth 2009 – 2016 considerably above the TAKKT average

Case Study Hubert: Long-term value creation and growth

9 Case Study Hubert | TAKKT 2017

2012: Acquisition of GPA / Displays2Go

2014: Opening of the new warehouse

in Fall River, Massachusetts:

• GPA is a distributor of display products, selling mainly online under the brand Displays2Go

• Annual turnover at acquisition: USD 51 million

• Annual growth 2012 – 2016 considerably above the TAKKT average

Case Study Hubert: Long-term value creation and growth

10 Case Study Hubert | TAKKT 2017

2012: Solar roof installation

Hubert HQ

The development of Hubert is supported by major investments in sourcing and logistics capabilities

2015: Hubert opens new

warehouse in Nevada

2014: New Hubert sourcing

office in Hong Kong

Case Study Hubert: Long-term value creation and growth

11 Case Study Hubert | TAKKT 2017

2015: Acquisition of Post-Up Stand

• Post-Up Stand is a distributor of customized display products, mainly banner stands

• Annual turnover at acquisition: USD 16 million

• Turnover growth considerably above the TAKKT average

Case Study Hubert: Long-term value creation and growth

12 Case Study Hubert | TAKKT 2017

2017: Reorganization of the SPG – division into 3 segments:

• The Specialties Group (SPG) has become too big and complex, which is why it is divided into MEG,

REG and DPG.

• Bart Kohler becomes President of TAKKT America.

formerly SPG

Case Study Hubert: Long-term value creation and growth

13 Case Study Hubert | TAKKT 2017

More to come ….

Further growth opportunities:

• new products

• adjacent markets

• international rollout

• investments into people, systems, facilities