Market

Jet Investment has entered into an agreement to divest the energy and engineering group, TEDOM. Under the deal, Yanmar Group will acquire 100% of the shares in TEDOM.

The share purchase agreement (SPA) was signed on 4 September 2024, with the transaction pending approval from the relevant regulatory authorities. The transaction is expected to be completed in the coming months. Both parties have agreed not to disclose the transaction’s value or other details. Upon closing, Yanmar Group will acquire 100% of the shares in TEDOM. TEDOM will then become part of the Yanmar Group, which has more than 20,000 employees and annual sales of approximately CZK 170 billion.

TEDOM Group is a leading global manufacturer of cogeneration units and a provider of comprehensive solutions and maintenance for distributed energy systems. The company also offers a range of energy services including power generation, power balancing, electricity and gas sales, and ESG consulting. With around 1,000 employees and operations in the Czech Republic, Germany, Poland, Slovakia, the United States, the United Kingdom, and Kazakhstan, TEDOM Group is expected to generate approximately CZK 8 billion in revenue in 2024.

“Since the acquisition in 2019, we have succeeded in converting TEDOM Group into a true global organization. TEDOM today is not just a supplier of cogeneration units and services but also a supplier of comprehensive energy solutions.” says Mr. Oldřich Šoba, investment director of Jet Investment. Mr. Marek Malík, partner at Jet Investment, adds “TEDOM Group will surely rank among the most important and successful projects in Jet Investment’s almost 30-years of history. We successfully grew TEDOM with our active investor management despite the difficult business environment with COVID-19, supply chain problems, Ukrainian conflicts, followed by high inflation.”

Mr. Peter Aarsen, CEO Yanmar Energy Systems International commented “We are thrilled about this transaction and grateful for JET Investment’s support. This strategic move brings together TEDOM’s expertise in cogeneration and energy services with Yanmar’s global reach and innovative technologies. The strengths of both companies complement each other, creating a strong foundation for future growth. We remain committed to upholding the high standards and values that TEDOM and Yanmar are renowned for.”

The sale of TEDOM Group will be the first divestment of the Jet 2 private equity fund, through which Jet Investment owns the group. After the sale of TEDOM, Jet Investment’s portfolio will include 2JCP (CZ) and Rockfin (PL), which also specialise in energy, and the printing group EDS (DE). Jet Investment currently has an additional CZK 3,8 billion in the Jet 3 Fund, ready for acquisitions of industrial companies.

Enterprise Investors Fund IX (EIF IX) has announced an investment in Scan Lab, the largest digital dental prosthetics laboratory in Poland. The value of the deal has not been disclosed. EIF IX and the company’s CEO, Damian Waliłko, will acquire 100% of Scan Lab in this transaction. The seller is a Polish investment fund managed by Forum TFI.

Scan Lab is an innovative Polish company specializing in digital solutions for dental prosthetics and orthodontics. Since its establishment in 2017, the laboratory has offered dentists and orthodontists fully digital technology for fabricating prosthetic restorations such as crowns and veneers as well as orthodontic aligners. These solutions cover every stage of treatment, from diagnostics and analysis to design and production of custom-fitted products.

What caught the attention of Enterprise Investors is the uniqueness and high quality of Scan Lab’s solutions. The company’s business model, based on digital technologies and excellent logistics, represents a significant barrier to market entry and makes it difficult to replicate. This is reflected in the strong financial results and high growth dynamics – in 2024 Scan Lab plans to reach EUR 12 million in revenue.

Enterprise Investors partner Michał Kędzia, who is responsible for the investment in Scan Lab, commented: “This transaction marks another foray by EI into the healthcare sector. Encouraged by previous successes, we decided to invest in this key sector of the economy once again”. He added: “The foundations for the dynamic development of modern prosthetics and orthodontics are extremely strong, bolstered by growing patient awareness regarding health and aesthetics. We believe that Scan Lab, under the leadership of its CEO and our new partner Damian Waliłko, will significantly improve quality of life for many patients in Poland and abroad”.

Our goal is to support dentists and dental clinic owners in the adoption of modern digital prosthetics technology,” said Damian Waliłko, adding: “At the core of this process is the use of 3D scanners, which have transformed prosthetics and orthodontics in recent years. Full digitalization of the workflow provides unprecedented comfort for patients and gives both the clinician and the laboratory complete control over creating custom restorations. Ultimately, the most important factor is the quality of the final product, be it a prosthesis, crown, veneer or set of orthodontic aligners. Thanks to digitalization and the scale of our operations we can tailor our solutions to the specific needs of each dentist, which allows us to create many beautiful new smiles more expeditiously.”

Polish Enterprise Fund VII, a private equity fund managed by Enterprise Investors (EI), announces the sale of Nu-Med, a leading Polish company specializing in radiotherapy treatment for cancer patients. The buyer, Affidea, is a pan-European provider of specialist healthcare services, including cancer care, advanced diagnostic imaging and community-based polyclinics. The deal is subject to approval by the Polish Office of Competition and Consumer Protection.

Nu-Med’s journey with EI began in 2013 when PEF VII acquired a significant minority stake in the company, which then operated a single radiotherapy center in Elbląg, northern Poland. In the previous year EI made its first investment in radiotherapy in Katowice, southern Poland. The two radiotherapy centers subsequently merged under the Nu-Med banner and two more treatment centers were opened: one in Tomaszów Mazowiecki, located in the center of the country, and the other in Zamość, situated in eastern Poland.

Over the past decade, Nu-Med has maintained its commitment to high-quality treatment and patient care. The company’s strong position among healthcare providers is reflected in its solid financial standing, with 2023 revenues reported at the level of more than EUR 60 million.

Michał Rusiecki, EI’s managing partner responsible for the investment, said: “This exit represents a significant milestone both in Nu-Med’s growth and in EI’s investment strategy in the healthcare sector, underscoring the firm’s commitment to creating value in this critical sector. We are extremely proud that during our investment period we provided critical care to almost 70,000 patients.” He added: “From a single radiotherapy center, we’ve grown Nu-Med into a leading provider of cancer care. The sale to Affidea ensures that Nu-Med will continue providing high-quality, comprehensive cancer care to patients across Poland as part of a premier international organization.”

Mesut Göral, CEO of Affidea Poland, Senior Vice President and COO for Affidea Group, commented on the acquisition: “Cancer remains a leading threat in our communities, being the second most common cause of death in Poland with around 170,000 new cases and 100,000 deaths annually, according to WHO. This acquisition highlights Affidea’s commitment to supporting the National Oncology Strategy, ensuring better access to top-quality services for cancer prevention, early diagnosis, and treatment, in a comprehensive and integrated manner. Nu-Med’s renowned radiotherapy centre, led by their Senior Leadership Team and highly qualified clinical and non-clinical colleagues, perfectly complements Affidea’s operations and culture. We look forward to working together, after the closing, in our common mission of fighting against cancer.”

Genesis Growth Equity Fund I (GGEF I), a private equity fund specializing in investments in small and medium-sized companies with growth potential primarily in the Czech Republic and Slovakia, has successfully completed the acquisition of a majority stake in Předvýběr.CZ. The company provides specialized services of preselection of appropriate candidates in the HR consulting market. GGEF I will work with the reinvesting owners to further develop the company.

Předvýběr.CZ is a Czech company specialising in the time-consuming part of the recruitment process for mid-level and junior positions. The company searches for candidates using specialized databases and other sources, filters them according to specific criteria and personal interviews, and brokers them to its clients for a fixed fee. The company was founded in 2008 and is based in Prague.  The founders František Boudný and Vladimír Kočí decided to find a strong financial partner to support the further growth of Předvýběr.CZ.

František Boudný and Vladimír Kočí will retain a significant minority stake in Předvýběr.CZ and will continue to actively participate in the management of the Company. At the same time the intention is to strengthen the management team and allow additional employees to assume greater responsibility for the future direction of the Company.

Marek Hoščálek, Partner at Genesis Capital Growth, says: “The founders found an interesting niche in the established recruitment consulting market between ad servers and specialized recruitment consultants, and they have managed to gradually expand this new market position to several Czech regions. We are happy to support Predvýběr.CZ through our fund in further regional growth in the Czech Republic and prospectively also in neighbouring countries.”

František Boudný, founder and CEO of Předvýběr.CZ, said, “We are pleased to team up with Genesis Capital Growth, which we consider a value-add partner for future growth. Our common goal is to provide high quality services to our customers in the future and to support them in their further development, which will be helped by the strong financial background that the partnership with Genesis Capital Growth provides. At the same time, we will place emphasis on the continued development of our employees, which we see as key ingredient for the future success of the company. “

Enterprise Investors Fund IX (EIF IX) has signed an agreement to buy out a majority stake in Sescom, a facility management provider servicing the modern retail sector. Sescom is the undisputed leader in the Polish market and is successfully strengthening its position in Western Europe, with operations across 27 countries. Its customers include such established brands as Douglas, Rossmann and Mango.

• The planned EUR 24.7 million investment will give the fund a majority stake in Sescom, once the current majority shareholders acting in concert have, i.a., completed a squeeze-out;
• The fund, acting in agreement with Sescom’s founder and CEO Sławomir Halbryt, aims to speed up the company’s dynamic growth through foreign expansion. To this end, EI will provide additional equity to Sescom and plans its delisting;
• The transaction is subject to the necessary regulatory approvals.

Sescom was founded in 2008 by Sławomir Halbryt, who has played a key part in its success to date – from winning the first client through to formulating a clear business plan based on technological solutions and specialization in the retail sector. The company leads in Poland’s facility management market, is considerably strengthening its position in Germany and Austria, and – since acquiring a British competitor in 2023 – is expanding dynamically also in the UK.

Sescom’s high service quality is rooted in its effective management, professional know-how and successful integration of experience and technology. Thanks to this, its client portfolio contains close to 100 recognized brands and its technical teams serve more than 40,000 stores across Europe. Management’s effectiveness is borne out by the sound financial results Sescom achieved in the last fiscal year, when its revenues reached EUR 54 million.

“What drew our attention to Sescom was its attractive market requiring a combination of superior technical expertise with experience and mobility. We are highly impressed by the systematic growth of Sescom’s customer base, made up of companies that are European leaders in their respective segments and that demand the highest standards of service. All this, combined with the successful UK acquisition, allows us to plan the company’s further dynamic expansion,” said Sebastian Król, Enterprise Investors partner responsible for this investment. He added: “Operational effectiveness is one of the key factors we look at when choosing our business partners. We believe Sławomir Halbryt and his team have built a very effective business model that is proving itself both at home and internationally.”

The company’s founder and CEO Sławomir Halbryt commented: “One of our priorities is to skillfully combine the advantages of a large international player with the elasticity and agility of a small company. This approach enables us to maintain a fresh outlook and flexibility in building our offer while taking advantage of opportunities that present themselves in the market. Both we and the Enterprise Investors team assume that Sescom’s organic development will lead to rapid value growth and that further market consolidation will accelerate this process.”

Genesis Capital, one of the leading private equity groups in Central Europe, is preparing to launch its seventh fund. Genesis Private Equity Fund V (GPEF V) will build upon the group’s previous successful funds and will focus on investments in medium-sized enterprises in the Czech Republic, Slovakia, Poland, Hungary, and Austria. With a target size of EUR 250 million, GPEF V aims to become one of the largest private equity funds in Central Europe. The fund is expected to be launched in the first half of 2025.

Ondřej Vičar, Managing Partner of Genesis Capital Equity, presents the strategic intent of the new fund: “GPEF V will continue the proven strategy of previous funds in terms of sector, geography, and investment situations. The fund will target established companies with a strong growth potential, particularly in situations where founders are looking for successors or need financial support for further development, innovation, or international expansion. At the same time, we will also be active in cases where multinational companies are restructuring their operations and exiting non-core markets or divesting their assets.” 

Radan Hanzl, Partner at Genesis Capital Equity, adds: “As part of our strategy, GPEF V will continue to focus on four industries that we consider stable and at the same time with good future dynamics. These industries include B2B services, light and medium specialised manufacturing, IT services and technology outsourcing, specialty retail and consumer services. Focusing on multiple sectors will enable GPEF V to ensure diversification of its investments, thereby achieving an optimal expected return and risk profile for its investors.”

“With the new fund we aim to build upon the successful investments and attractive results we have achieved in our previous funds. Over its twenty-five-year history, Genesis Capital has become the most active private equity company in the Czech Republic, and I am pleased that with further development, we are now advancing among the leading firms in the industry within the broader Central European region,” adds Ondřej Vičar, expressing not only his confidence in Genesis Capital’s past achievements, but also his determination to further expand activities in the private equity sector in Central Europe.

The new fund targets companies with a responsible approach

“We want to invest in healthy, transparently managed companies that operate ethically and in accordance with principles of environmental protection, fair working conditions and positive social impact. We want to further encourage these steps as we believe that supporting a responsible approach to business benefits not only our investors, but all entities, individuals and communities that work with us,” adds Ondřej Vičar.

GPEF V, like previous Genesis funds, will invest primarily in the Czech Republic and selectively in neighbouring countries – Slovakia, Poland, Austria, and Hungary. The fund’s investors will be predominantly international and local institutions and investment companies.

“The preparation of the new fund at this time and its proposed size are supported by several factors: very good performance of the GPEF III fund (which started in 2015), the high investment pace and good outlook of the current fund GPEF IV and, most of all, the growing number of attractive and also larger investment opportunities, which we are able to process with our continuously expanding investment team,” concludes Tatiana Balkovicová, Senior Investment Director at Genesis Capital Equity.

International law firm CMS is pleased to announce two key leadership changes in its Prague and Bratislava offices, effective from 1 May. Tomáš Matĕjovský will assume the role of Managing Partner of CMS in Prague, while Juraj Fuska will become Managing Partner of CMS (CMNO) in Bratislava.

Helen Rodwell concludes her third consecutive term as Managing Partner in Prague – during which time she was also instrumental in establishing and leading the firm’s Bratislava office. She will continue to be based in Prague, focusing on clients and complex M&A transactions across CEE, for which she is renowned and acknowledged as one of only three Tier 1 Corporate/M&A lawyers in the entire CEE region by Chambers Global. Helen will also continue to serve as a member of the global Board of CMS Cameron McKenna Nabarro Olswang LLP.

Tomáš Matĕjovský, currently head of the Commercial, Regulatory, and Disputes practice at CMS Prague, brings a wealth of experience to his new role. Specialising in litigation and arbitration, compliance matters, white-collar crime, and various aspects of commercial law, including employment, IP, and competition, Tomáš has successfully represented clients in a range of litigation and arbitration proceedings at all judicial levels. Tomáš also advises a range of medical device and pharmaceutical companies on various matters, including sector-specific regulatory matters, clinical trial issues and anti-corruption issues.

Commenting on his new role, Tomáš said: “Becoming the Managing Partner of CMS Prague is a privilege. I’m genuinely excited about the opportunity to lead and contribute to the continued success of our Prague office and the firm as a whole. I would like to thank Helen for her unwavering commitment to leading the Prague office and building a world-class team dedicated to the success of our clients. The Prague office has grown significantly under Helen’s leadership to become one of the leading law firms in Prague and I look forward to working with Helen and the wider team to deliver on our ambitious plans.”

Juraj Fuska, currently head of the Corporate/M&A team at CMS Bratislava, has more than 20 years of experience in the international law firm environment in Slovakia and takes over management directly from Bratislava. Over the course of his career, focusing on multiple industry groups, Juraj has gained an extensive knowledge of the market and developed a wide breadth of expertise, which allows him to act on significant deals in the market, including complex cross-border transactions. In addition to being a highly sought-after M&A and capital markets expert, his broad range of expertise also includes corporate matters, greenfield investment projects, regulatory and financial institutions advice and PPPs.

Juraj comments: “I am honoured to take on the role of Managing Partner for CMS in Bratislava. Helen has done a remarkable job leading our Bratislava office since its inception and I am eager to build on this strong foundation. I look forward to bringing my experience to this new leadership role as I am committed to pursuing excellence in every endeavour while continuing to deliver exceptional service to our clients. I have no doubt that working with our talented, globally-minded team will fortify our market reputation as the leading law firm in Slovakia. I am very grateful for the trust and support that I have received from CMS and I am very much looking forward to building on that trust and support in the future.”

Genesis Growth Equity Fund I (GGEF I), a private equity fund specializing in investments into small and medium-sized companies with high growth potential in the CEE, has successfully completed an acquisition of a majority stake in Carussel. Co-investors in this transaction are the company’s founder, Mr. Mario Della Donna, and its current CEO, Mr. András Müller.

Carussel is a Hungarian company supporting car dealerships, distributors, and manufacturers in digitalization of their processes. It focuses on the development and operation of modular dealership management systems for car dealerships across Europe and globally. Furthermore, Carussel offers online marketing services that enable clients to maximize performance in traffic acquisition and lead generation.

Marek Hoščálek, the partner of Genesis Growth, remarked: “We were truly impressed by András, Mario, and their management team’s capability to establish Carussel as a trusted partner for major automotive players and successfully extend the company’s product offering internationally. We perceive that automotive industry and car dealerships are generally underdeveloped from an IT perspective and Carussel, with its expertise, is well-positioned to capitalize on the ongoing digital transformation within the sector.”

CEO of Carussel, András Müller, commented: “The automotive industry is going through a period of great turbulence and transformation. Digitalization is playing an increasingly important role in this transformation, and this opens up great business opportunities for Carussel. From the very first moment of the negotiations, we felt that Genesis Growth would be a great partner and could help us tremendously to capitalize on these business opportunities. Together, we can make big steps towards helping Carussel grow even faster and further strengthen its business position in the automotive industry.”

Jiří Beneš, the managing partner of Genesis Growth, added: “We are delighted to announce the latest investment completed by GGEF I, the fund targeting investments into companies with strong growth potential and ambitious management teams seeking funding and support to expand internationally, invest in new innovations, and develop their businesses further. We look forward to collaborating with Carussel’s team, who have been instrumental in driving the company’s successful development to this point.”

Both funds specialize in companies with high growth potential and own the same shareholding in UPS Technology. The new owners plan to strengthen the management team, expand critical infrastructure product offering of the company and add experience in expanding into foreign markets.

“The acquisition of UPS Technology marks another step in the execution of our strategy to invest in companies that deliver stable performance but need effective assistance with technology and business development that meets the needs of the current market to fulfil their high growth potential,” said Václav Salač, Executive Director of the ADAX Corporate Succession Fund.

The acquisition of UPS Technology marks the first joint investment for ADAX Fond firemního nástupnictví and Genesis Capital Growth. “Both investors, ADAX and Genesis Growth, complemented each other well during the acquisition process. We very much appreciate this cooperation, it can be the beginning of our long-term cooperation,” says Salač.

Jiří Beneš, Managing Partner of Genesis Capital Growth, added: “We are pleased to announce another investment by GGEF I, a fund focused on investing in companies with strong growth potential and ambitious management teams. We look forward to working with the UPS Technology team and believe the company has significant future growth potential in the uninterruptible power backup market.”

He also thanked the founders of UPS Technology, Dušan Dostál and Jaroslav Davídek, for their effective cooperation, under whose leadership the company has achieved a significant position, especially in the Czech market of backup systems.

Marek Hoščálek, partner of Genesis Capital Growth, also confirmed ambition to support the further growth of UPS Technology. “The founders of UPS Technology have managed to build a stable and successful company, which is one of the major players in its field and which is able to compete internationally on both domestic and foreign markets. We are pleased to support the growth of a company with a strong position in the attractive segment of uninterruptible power supply systems through our fund.”

Polish Enterprise Fund VII (PEF VII), a private equity fund managed by Enterprise Investors, today announced its planned exit from JNT Group (JNT), one of the largest domestic producers, importers and distributors of wines. The company is to be acquired by its CEO, Jakub Nowak, who, along with a group of investors, will conduct an MBO. As a result of the transaction, Nowak will become JNT’s majority shareholder.

• The value of the deal has not been disclosed;
• The transaction requires antimonopoly approval.

PEF VII acquired JNT (then Jantoń) from the founding family in 2017. Jakub Nowak had headed the company from the outset, having been with the firm for over 20 years, since the beginning of his professional career. Together with the EI team, he drew up a plan for JNT’s dynamic growth. The company has grown consistently since the change in ownership and gained more of the Polish wine market than its competitors. Today, its market share is estimated at close to 20%.

JNT achieved this position by investing in its production capacities and marketing, as well as through the acquisition of brands such as Grzaniec Galicyjski, Wino Makłowicz, Selekcja Makłowicz and Platinum Wines. The company also launched its international expansion last summer, when its products appeared in retail chains in Romania. In December JNT took over a local Romanian competitor, thus accelerating the growth through acquisitions.

EI partner Sebastian Król, who is responsible for the investment, summarized the transaction as follows: “I am pleased that JNT remains in the hands of such a capable manager as Jakub Nowak. His market expertise is unparalleled, and he knows the company inside out. Jakub has been instrumental in securing JNT‘s success to date. He is also best placed to build the company’s value going forward.”

“Our collaboration with Enterprise Investors over the last six years has been very fruitful and has taught us a lot. During this time we not only grew significantly, becoming Poland’s largest wine producer and distributor, but we also professionalized the team, substantially increased production capabilities, optimized the product portfolio and successfully completed domestic as well as foreign acquisitions. Our ambitious plan for the next stage of development is for JNT to become the largest group in Poland and to build a strong presence in many international markets,” commented Jakub Nowak, CEO.

BHS Private Equity Fund, managed by Versute Investments a.s., together with company´s managers Petr Havlík, Jaromír Kejval and Milan Křovina, has acquired Altran CZ a.s. (joint-stock company), which will now be called Tiyo a.s. Tiyo is a leading provider of research, development and testing services for various industries. Tiyo provides its services to more than 300 customers, mainly in Europe, with annual revenues exceeding CZK 300 million.

Tiyo is based in its premises in Hořice, Czech Republic, providing professional services of commercially used and accredited testing laboratories. These laboratories specialise in testing of various components for their environmental, mechanical, material, and electrical qualities. Tiyo also provides services in developing and manufacturing of test equipment, in vehicle engineering and electromagnetic compatibility testing.

The company was founded in 1993. In 2016, it was acquired by Altran International B.V., which was subsequently acquired in 2020 by Capgemini SE, one of the leading technology transformation partners for organisations across its value chain.

In 2022, Capgemini Group decided to sell Altran CZ for strategic reasons. The acquisition by the management team and BHS Private Equity Fund was chosen as the best fit. The transaction was executed on 18th of September 2023.

With the new shareholders, the company will continue to pursue long-term business continuity and provide high-quality services in the areas mentioned above. Simultaneously, it will intensify the research and development in the fast-growing segments identified above and further expand and diversify its customer portfolio.

“We are pleased to have partnered with Versute Investments and BHS Private Equity Fund, who have a successful track record in investing in small and medium-sized businesses of our type, to acquire Tiyo jointly. We are confident that this new milestone will bring positive changes and enable the company to meet the needs of our customers and partners even better and provide an even broader range of high value services,” says Petr Havlík, shareholder and board member of Tiyo a.s.

Tiyo becomes the fifth active portfolio investment of BHS Private Equity Fund, which expands its high-quality portfolio with another company that belongs to the group of European leaders in their fields.

“This transaction fits well to the fund’s investment strategy. The fund acquires a company with clear strategy and sustainable competitive advantage, high innovation and growth potential, all in a very attractive emerging sector. Key aspect is that this transaction was carried out with senior management team, whose members became shareholders and our partners. They are very experienced and highly motivated managers, and we are delighted to be opening this new chapter in the company’s life together,” says Luděk Palata, partner at Versute Investments.

In legal matters, the Schoenherr legal team, led by Michal Jendželovský advised on the transaction.

BHS Private Equity Fund, with Versute Investments a.s. being its general partner, is a sub-fund of BHS Fund II – Private Equity SICAV, which focuses on investments in small and medium-sized enterprises in the Czech Republic and Slovakia. Further information about the Private Equity Fund is available at:

https://www.investice.cz/bhs-private-equity-fund/

The Czech-based investment company Jet Investment has purchased a majority stake in the Czech company LIKOV through its private equity fund Jet 3. With a turnover of CZK 1.5 billion, the company is a leading European manufacturer of building profiles for insulation systems.

Jet Investment, through its Jet 3 Fund for qualified investors, has purchased 70% of the equity in LIKOV. The successors of the company’s founders, led by Radek Toman, who will continue to serve as the company’s CEO, will remain minority owners. The parties have agreed not to disclose the terms of the transaction.

“This is a successful family business with a long history of growth. We are entering as an investor at a time of generational change with the goal of supporting its further development and international expansion,” says Jet Investment founding partner Igor Fait.

LIKOV is a leading European manufacturer and distributor of plastic and aluminium building profiles and construction accessories, especially for external insulation systems. Last year, the company’s sales reached CZK 1.5 billion with EBITDA exceeding CZK 260 million. The company has a strong export orientation, selling its products to 250 customers in 39 countries, and it employs more than 150 people at its production and logistics facility in Kuřim, South Moravia.

In future, LIKOV should benefit from the European-wide trend of decarbonization and further increase the share of exports in its sales. “We see growing demand in European markets for greater energy efficiency and insulation of buildings. While the Czech Republic is already an insulation powerhouse, LIKOV, with its broad product portfolio and quality customer service, is seeing opportunities for further growth opening in European markets,” says Jet Investment Project Director Petr Filka.

Radek Toman, Managing Director of LIKOV, comments on the deal: “I believe that the entry of Jet Investment will be an impetus for further development of the company and together we will contribute a greater share to reducing the energy consumption of buildings in the Czech Republic and Europe.”

The acquisition of LIKOV is the first completed transaction of the Jet 3 Fund, in which Jet Investment pools individual and institutional investors’ capital and its own funds.

“We are pleased that we succeeded in intermediating the entry of an experienced investor, which is a guarantee for LIKOV’s further development in the promising field of building insulation,” said Marek Hatlapatka and Petr Ullmann on behalf of Cyrrus Corporate Solutions, which was the financial advisor to the sellers.

Enterprise Investors Fund IX is to invest in Advanced Protection Systems, the largest Polish independent manufacturer of state-of-the-art radars and comprehensive anti-drone systems. 

• EIF IX will acquire a significant minority share in the company;
• The value of this proprietary investment has not been disclosed.

Advanced Protection Systems (APS) is a pioneering technology company founded by Dr. Maciej Klemm, CEO of the company, and Dr. Radosław Piesiewicz, COO, after successful academic careers. Having commenced the project in 2015 with a focus on radar technology development and production together with dedicated software, over the years APS has become a fully fledged solution provider catering to the growing demand for drone detection systems. The company’s proprietary radar technology offers unparalleled advantages over its competitors: it allows for faster high-precision detection and classification of multiple low, slow, and small (LSS) flying objects at lower altitudes.

The key to APS’s remarkable growth over the past years lies in its ability to provide a state-of-the-art radar system, complemented by intuitive and customizable software. The company’s hardware based on a modular architecture adds to its adaptability and suitability for both commercial and military customers.

“APS has garnered a strong track record, building on past successes and unique features of its solutions. We believe that in the years to come the company is poised to execute a very ambitious international expansion strategy,” said Michał Kędzia, a partner at Enterprise Investors who is responsible for the investment, adding “APS is run by very entrepreneurial founders who are responsible for its rapid growth to date. We do look forward to partnering with them. I am convinced that EI’s vast experience in optimizing corporate structure, conceptualizing and implementing most favorable financing, as well as recruiting top executive talent will result in very fruitful” and lucrative collaboration”.

“With the support of Enterprise Investors, we plan to sustain dynamic growth and accelerate the development of our technological, manufacturing, and organizational capabilities. At the core of our business activity lies product quality and customer satisfaction, which are our top priorities. We are happy to have found a partner that shares our vision, supports our goals and believes in our potential,” said Dr. Maciej Klemm, co-founder and CEO of APS.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will invest in Goodspeed, Poland’s largest provider of highly specialized temperature-controlled logistics services for ready-to-eat meal producers.

• PEF VIII will acquire a 49.8% share in the company;
• Goodspeed’s founders, Sylwester Rypina and Paweł Rypina, will retain a majority stake and will work with EI on the company’s further dynamic development;
• The value of the investment has not been disclosed;
• The transaction requires antimonopoly approval.

Goodspeed was established in 2009, initially providing delivery services for a single meal box producer in one district of Warsaw. Today, it is the unchallenged leader in providing highly specialized cold chain logistics services for Poland’s ready-to-eat meal producers. The company serves more than 4,600 cities and towns across the entire country. It maintains the highest standard of service and an exceptionally effective delivery chain thanks to unrivaled know-how and logistics processes (with a proprietary IT platform) that are tailored to this market.

Size and nationwide reach allow Goodspeed to reap the benefits of scale. This, and the fact that a company wanting to deliver ready-to-eat meals must have a dedicated logistics chain, gives Goodspeed’s business model several competitive advantages and makes it to hard replicate. The financial results confirm the company’s market leadership: 2022 revenues reached PLN 80 million, while this year’s target is PLN 125 million.

“Goodspeed does what is hardest in logistics – last-mile temperature control,” said EI partner Michał Kędzia, who is responsible for this investment. “The company’s unique know-how enabling door-to-door delivery, and the growing role of direct sales in the food industry, create potential for expansion into new product categories. Since Goodspeed operates an extensive last-mile delivery network under temperature-controlled conditions, it can add a broad range of other services to its offer for end customers,” he added.

Sylwester Rypina, Goodspeed’s founder and CEO, summed up the development potential as follows: “Working with our new business partner, we plan to move the company’s dynamic development up another gear. We see we can expand our competencies by adding new solutions for our customers. Moreover, since we work with many ready-to-eat meal producers and serve a considerable part of this market, we believe we can use our lead position to offer those customers additional specialist services. For years we have been honing the very demanding logistics process for the catering industry. We allocate tens of thousands of meals every evening to production companies all over Poland and deliver them to consumers’ front doors within a few hours, maintaining full control over the cold chain logistics. We plan to develop these unique competencies in foreign markets with the support of our new partner. We also want to enter new industries and offer our existing customers other exciting and innovative solutions.”

Innovation is all around us as businesses continue to develop new inventions, invest heavily in R&D, and register new Intellectual Property (IP) rights. However, the increase of such intangible assets lends itself to more things keeping decision makers up at night. The value has been created but is it being adequately protected? What are some of the key liabilities and exposures relating to intellectual property rights such as the event of a catastrophic IP infringement lawsuit?

I’m delighted to invite you to Aon’s IP Insurance Webinar for Czech & Slovakian Corporates on Wednesday, 17^th May at 10:00 – 10:45 AM. Our IP experts will elaborate on how to protect your company balance sheet from IP risks and utilize insurance to enhance enterprise value. The webinar is designed to discuss the main IP insuring clauses and will attempt to answer these questions to help you better understand the benefits and uniqueness of utilising IP insurance both to protect your bottom line and to enhance existing enterprise value. You will come away with a better knowledge of the IP insurance market and should feel more confident about building your own IP strategy.

I do hope you can join us and please register with the link below:

Register here for our IP Insurance Webinar on 17 May

If you require any further information, please contact Monika Petržílková (monika.petrzilkova@aon.cz)

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), exits Unilink, a leading insurance distribution platform in the CEE region.  Unilink will become part of Acrisure, a fintech that operates a top-ten global insurance broker. As a result of the transaction, PEF VIII will sell all of its shares in Unilink. Unilink’s management team will remain with the business.

• The value of the transaction remains confidential;
• The deal is conditional upon obtaining regulatory approvals.

Enterprise Investors invested in Unilink in 2018, making a capital increase to support an extensive M&A program and completing a partial buyout in return for a 38.4% stake in the business. At the time, the company was a leader in the local Polish market and was looking to strengthen its position as well as build up presence in neighboring countries. Today, Unilink is the largest insurance distribution platform in the CEE region. It has boosted its standing domestically and has also gained a strong foothold in Bulgaria, Czechia, Moldova, Romania and Slovakia. Growth has been both organic and via acquisitions, with over 60 add-ons bought since EI’s investment. During this time Unilink has not only increased its level of professionalization and digitalization but has also expanded the value chain by building two managing general agents (MGAs) in Poland and Romania that provide comprehensive services to insurance carriers. The growth of Unilink’s gross written premium by around 400% in four years is just one measure of its strong market position.

“Supporting a company’s growth is about investing in its future, which also means believing in its potential, supporting the management team and founders and being part of its journey to success,” said Enterprise Investors managing partner Dariusz Prończuk, who is responsible for this investment. “Unilink is the leading market consolidator in its market in Poland and other CEE countries. It is also one of just a few companies that have set up an MGA program in the CEE region and have full insurance capabilities. This is a good illustration of how at EI we not only support companies in their growth but also identify unique opportunities that can bring added value and contribute to their long-term success,” he concluded.

Igor Rusinowski, CEO of Unilink, commented: “Our five years with EI are a win-win. We have transformed Unilink from insurance distribution market leader in Poland to the largest player in CEE, spearheading the segment in six countries and operating through all distribution channels. With EI’s support we have achieved remarkable growth and built a solid position for the future. We believe the Acrisure partnership will help us become part of the largest insurance distribution platform in Europe, which is our next goal and long-term ambition. We share the same values and business DNA, with a very strong focus on entrepreneurship, M&As and delivering excellence. Our team are extremely excited to become Acrisure shareholders and to continue our expansion as part of this global player while leveraging its capabilities and technology in our markets.”

Anwim was founded in 1992 and initially it dealt solely with fuel wholesale. In 2009 the company launched retail operations and created an independent nationwide chain of petrol stations. Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, acquired a significant minority stake in Anwim in 2018. At the time the company had just over 180 fuel stations and EUR 730 million in annual revenues. Two years later – in 2020 – the fund increased its stake to majority position. Today Anwim, which operates over 400 service stations, is jointly owned by PEF VIII and minority shareholders, among whom are the company founders. Revenues last year approached EUR 2.8 billion.

MOYA is the largest independent chain of filling stations and the network is growing rapidly. MOYA stations are present in all Poland’s voivodeships, with outlets along the main transit routes and local roads as well as in towns and cities. In addition to fuel sales, the chain’s broad offer includes well-stocked convenience stores, Caffe MOYA outlets with food on the go, as well as other services. MOYA has also been growing quickly in the fleet segment, which was boosted by the company’s expansion into the international fleet card market in 2022 when it acquired The Fuel Company, TFC fleet card’s Dutch operator.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, is poised to back Renters.pl, the second largest short-term rental manager in Poland.

• PEF VIII will invest up to EUR 19 million in the company’s growth;
• The fund will acquire up to 80% of shares in pl through this investment;
• The transaction is conditional upon obtaining antimonopoly approval.

Renters.pl was founded in 2018 by two couples, Marta and Kamil Krzyżanowski and Aniela and Sebastian Hejnowski. The company started off as an operator of 15 holiday apartments in Świnoujście, north-west Poland. Within just a few years, it has become one of the largest players in this market and the country’s fastest-growing short-term rental property manager. In 2019 Renters.pl acquired Little Home, a company owned by Wojciech Maniecki, and it now operates over 2,000 rental apartments. Enterprise Investors will buy both the Hejnowskis’ and Wojciech Maniecki’s stakes, as well as shares owned by bValue fund, while retaining the current CEO Kamil Krzyżanowski at the helm. The funds raised in the transaction will be deployed for further growth and acquisitions.

Renters.pl operates in the very attractive and fast-growing short-term rental management market. It has a highly scalable and cash-generative business model that benefits from the organization’s growing size. The company’s customers are private and institutional property owners seeking comprehensive short-term property management and high rates of return on their investment. In addition to marketing and demand generation, Renters.pl offers homeowners dynamic pricing, management of both bookings and guests, cleaning, maintenance, interior design and professional photo services. The company employs over 110 people and in 2022 generated gross bookings value of nearly EUR 27 million.

“Having recorded growth during the pandemic, Renters.pl has demonstrated it can successfully scale up its property portfolio even under the most challenging conditions. The Polish market is still very fragmented, so for businesses operating in this segment to remain competitive they have to employ increasingly complex technology and have the appropriate resources as well as funding to maintain high-quality services. This creates natural entry barriers for newcomers and a good environment for consolidation,” said Enterprise Investors partner Dariusz Prończuk, who is in charge of this investment. “Renters.pl is an excellent platform for consolidating this sector both in Poland and across the region,” he added.

”The management team has the market expertise and drive needed to continue building Renters.pl’s property portfolio and to pursue consolidation projects. We are proud that the Enterprise Investors team recognized our experience and further growth potential. Our plan is to become the largest short-term rental manager in Poland and, when the time is right, we may even look for expansion opportunities further afield,” said Kamil Krzyżanowski, co-founder and CEO of Renters.pl.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will acquire a 40% stake in BISAR, a fast-growing process outsourcing company operating in Poland and expanding to other Central European countries.

• The fund will invest up to EUR 27 million in the company’s further growth and foreign expansion;
• The transaction is conditional upon obtaining antimonopoly approval.

BISAR specializes in process outsourcing services. It was founded in 2015 and very quickly expanded by taking on large corporate accounts. Over time, the company built an impressive portfolio of reputable clients from various industries including retail, logistics and food processing. BISAR’s dynamic growth was spurred by macroeconomic trends – very low unemployment rates, a shortage of workers in almost all sectors of the economy and an aging population. As these trends are pan-European, BISAR has already started geographic expansion: the company entered Romania earlier this year and plans to move into new geographies in the CEE region.

BISAR is committed to ensuring its employees receive professional training, which greatly increases the quality of services provided by the company. Its operational excellence, ability to quickly adjust to customer needs and high standards are greatly valued by the company’s business partners. BISAR will reach EUR 70 million in revenues in 2022 and plans to grow dynamically in the future on the back of prevailing macroeconomic trends.

“BISAR provides essential services that respond to the increasing workforce shortages caused by demographic changes. Unemployment levels are low and are likely to stay that way even during the economic downturn. I am convinced that together with the founders we will be able to mitigate the growing imbalance on the labor market in Poland and the region,” said Sebastian Król, a partner at Enterprise Investors who is responsible for this transaction.

Commenting on the deal, BISAR’s management board member Robert Abramek said “We strongly believe that together with our partners at Enterprise Investors we can take BISAR to the next level. This new partnership will accelerate implementation of technological solutions that we have already planned. Given the company’s strategic positioning and outstanding prospects, we plan to expand not only our existing accounts but also new ones outside of Poland.”

Polish Enterprise Fund VII, a private equity fund managed by Enterprise Investors (EI), has sold Noriel, Romania’s number one toys, games and children products retailer. The company has been acquired by Sunman Group, a Turkish market leader in toy retail, distribution and manufacturing that operates under the Sunman and Toyzz Shop brands. The value of the transaction will remain confidential.

Enterprise Investors acquired Noriel in 2016 for an undisclosed amount. At the time, it was a family-owned company backed by a financial investor. It operated a network of 47 shops. As part of the deal, EI provided Noriel with EUR 2 million in funding to boost its growth.

Today, the company is a robust omnichannel business with 88 modern stores located all across Romania. Noriel is a top brand on the Romanian toy market – a one-stop-shop for kids and their parents. The company offers the broadest assortment of toys, games and other baby products in the country. Its fast-growing, scalable e-store with an even broader product offering and highly efficient fulfillment function is a perfect platform for entering new markets, as evidenced by the company’s recent expansion to Bulgaria. Noriel’s modern CRM and loyalty systems put it at an advantage over local competitors. The company’s solid sales growth confirms its strong position: in 2022 Noriel is expected reach revenues of RON 312 million, its highest result to date.

“We are proud to be part of Noriel’s journey toward market-leading retail and e-commerce formats that provide the best shopping experience. Today, this is the only player in Romania to offer a true omnichannel service that maximizes online and offline synergies,” said Dariusz Pietrzak, a vice president at Enterprise Investors, who is responsible for the investment. “A shift in preferences toward innovative, entertaining and educational products will further benefit Noriel thanks to the company’s strong product development and sourcing capabilities,” he added.

Studenac, an Enterprise Investors portfolio company and Croatia’s most dynamically growing grocery retail chain, has announced that it will acquire Lonia, a retailer with 300 stores.

• The deal is part of Studenac’s ambitious growth strategy to become the leading pure-play proximity supermarket chain in the Adria region;
• The value of the transaction has not been disclosed.

Lonia Trgovina is a chain of 300 grocery retail stores operating in continental Croatia. Seventy-five of its shops are in the Zagreb metropolitan area, where Studenac has only a handful of stores. The acquisition will complement Studenac’s geographic coverage and will transform the company into a fully fledged nationwide player with the highest number of stores.

Enterprise Investors acquired Studenac in August 2018. At the time, the chain numbered over 380 shops located predominantly on the Croatian coastline and islands, with a hub in Dalmatia. Studenac subsequently integrated five large add-ons – Istarski Supermarketi and Sonik in 2019, Bure in 2021 and Pemo and Lonia in 2022 – as well as several smaller targets with fewer stores. The acquisitions, jointly valued at over EUR 120 million, added 595 shops to the chain. The company has also been growing organically and is on track to complete 100 store openings in 2022. After taking over Lonia, the Studenac chain will have more than 1,050 shops and countrywide coverage. The company’s dominant position is reflected in its strong financial results – the merged company is set to generate revenues in excess of EUR 500 million in 2022.

“I am extremely proud of the results of the hard work my team and I have put into this project. When we took over Studenac in 2018 we had an ambitious plan to become the number one player in Croatia. It took us three years to become by far the largest proximity supermarket chain in the region. We are no longer the brand of choice only for tourists visiting the Adriatic riviera but also for the many Croatians who do their quick daily shopping under the Studenac brand,” said Michał Seńczuk, Studenac’s CEO.

“We have injected over EUR 260 million into Croatia’s grocery retail and plan to continue investing in this sector. We are delighted with the results attained by Michał Seńczuk and his team and are convinced the company will keep growing in the years to come,” added Enterprise Investors partner Michał Kędzia, who is leading this investment. “The change we brought to Studenac is both quantitative and qualitative. Today, a Studenac store is a place where you can conveniently do your quick daily shopping, enjoy a coffee and snack on-the-go, collect deliveries and pay utility bills. Studenac is clearly raising the quality of proximity shopping to the next level,” he concluded.

Investment company Jet Investment is opening a branch in Poland Warsaw. The unit will be headed by Marek Chłopek, an experienced Polish private equity executive. Jet Investment plans to invest in up to eight companies in Poland over three years with a total value of over EUR 100 million. The plan is to open another branch in Germany next year.

Jet Investment, a Czech Republic-based investment company that manages assets of over €500 million (including committed capital) in its private equity and real estate funds, has opened its own office in Warsaw. An office in Germany will follow next year. “We have been investing in industrial companies in Poland and the whole Central European region for twenty-five years. Our investment approach is based on hands-on management, i.e. close cooperation between us and the management of the companies and participation in the decision-making process, which we will do even more effectively thanks to our expansion through local offices,” says Jet Investment partner Marek Malik.

Jet Investment, which used to own the Polish railway manufacturer Kuźnia Ostrów Wielkopolski and bought Gdansk engineering giant Rockfin and several industrial properties last year, plans to invest at least EUR 100 million in Poland and grow by three to eight acquisitions, each with an equity value of between EUR 10 million and EUR 50 million, over three years. Jet Investment already has eight projects in the pipeline, five in Poland. The company’s sectoral focus is renewable energy equipment, the rail industry, aerospace and automotive industry, industrial machinery, speciality and biochemicals, industrial waste processing and recycling, technical textiles, composite materials, speciality alloys, building materials or ICT. “42 per cent of European industrial companies are concentrated in the Central European region, and large, economically growing Poland offers investors a huge pool of attractive companies with management that is on a par with Western Europe. Our advantage as a local investor is that we are culturally and now, with our office in Warsaw, geographically close to local companies,” explains Marek Malik.

Experienced investment executive Marek Chłopek will lead Jet Investment Poland. “Warsaw is the centre of Central European private equity and still has a lot to offer to investors like Jet Investment, especially because investors of our size are mainly focused on the IT and technology scene here. In the field of industrial investments, we see the room for medium-sized investors on the Polish market and much less competition compared to Western Europe,” says Marek Chłopek, who previously co-founded and headed Penton Partners’ equity group and managed a multi-family office.

The Polish team will prospectively have 6-7 employees, including four experienced investment directors. They will be responsible for sourcing investment targets and their subsequent management, and, once the investment horizon has been reached, also for sourcing potential buyers. Jet Investment plans that the Polish office will also start fundraising after obtaining the relevant license from the Polish authorities and will also offer investment in Jet funds to qualified Polish investors. The current investor base of Jet funds consists of Central European HNWIs, family offices and local and international financial institutions.

Following the Polish office, Jet Investment also plans to establish its investment arm in Germany next year, where the investment team will identify acquisition opportunities and manage German and Austrian companies.

CMS bolsters its CEE corporate offering with key partner appointment in Slovakia.

International law firm CMS is bolstering its Central Europe Corporate offering with the appointment of Juraj Fuska as Partner in its Bratislava office.

Widely acknowledged as a leading individual for Corporate, M&A and Commercial, Juraj has over 20 years of experience advising on complex negotiations, major domestic and cross-border mergers and acquisitions, corporate matters, and greenfield investments. He is also an expert in capital markets. As part of his move, Juraj brings with him a team of three associates, Martin Melicher, Demian Boska and Richard Svocak.

Helen Rodwell, Managing Partner of CMS in Prague and Bratislava commented: “We are delighted to welcome Juraj and his team to CMS. Juraj has a strong practice and client base that perfectly complement our existing offering in Bratislava, building on our strong capabilities in deal execution in complex multijurisdictional CEE transactions. We are looking forward to work with our new colleagues.”

Juraj commented: “I am excited to be joining CMS. This truly international law firm has long been committed to the region. Its strong platform in CEE and across the rest of Europe made it an obvious choice for me to take my practice to the next level. I look forward to joining an ambitious team and growing the firm’s presence in Slovakia and Europe.”

Juraj joins CMS from his own law firm Aldertree. Prior to this, he was the managing partner of White & Case Slovakia and the head of the M&A, corporate and capital markets practice teams in Slovakia.

MidEuropa announced today that it has entered into a definitive agreement to acquire a majority stake in Optegra Eye Health Care (“Optegra” or the “Company”), a leading European ophthalmology platform operating in Poland, Czech Republic, Slovakia and the UK. The Company is led by an experienced management team who are reinvesting alongside MidEuropa and the current sponsor, H2 Equity Partners. The transaction, which is subject to customary competition and regulatory approvals, is expected to complete in the first half of 2023.

Optegra is offering a wide range of procedures including cataract, AMD, and vision correction for both public and private patients. The Company operates 29 highly integrated state-of-the art facilities and performs over 100k surgical procedures per year with a focus on industry-leading clinical outcomes and outstanding patient experience.

Pawel Malicki, Principal at MidEuropa, commented: “Optegra is a fast-growing European healthcare player ideally positioned to deliver organic growth within its current footprint and expand into new geographies. We have closely followed Optegra’s development over the past few years and are impressed with its progress and excited to work with the management and H2 Equity Partners in building a pan-European ophthalmology champion.”

Dr. Peter Byloos, CEO of Optegra, commented: “Optegra has a proven track record of delivering outstanding clinical outcomes and patient service, enabled by highly standardized pathways. We have built a strong foundation with H2 Equity Partners and we look forward to welcoming MidEuropa to accelerate our expansion and continue our strong engagement with our doctors, clinical teams and staff.”

Robert Knorr, Managing Partner of MidEuropa, commented: “Our investment in Optegra demonstrates the firm’s continued focus on attractive and growth-oriented healthcare opportunities. MidEuropa has a strong track record in building and exiting national and regional healthcare leaders across the Central European region. We look forward to contributing our regional and sector experience to Optegra.”

The transaction was executed by Pawel Malicki, Eugeniu Prodan, David Nemcek and Ivo Cavrak.

MidEuropa was advised by Moelis (M&A), White & Case (legal), LEK (commercial), PwC (financial, tax and IT), and Houlihan Lokey (financing advisory).

H2 Equity Partners was advised by Lincoln International (M&A), Eversheds Sutherland (legal), Mansfield Advisors (commercial), PwC (financial), Grant Thornton (tax), and Diligize (IT).

On 1 October 2022, the amendment to the UBO Act came into effect in the Czech Republic, which places
obligations on Czech companies regarding their UBOs and specifies penalties for companies, which fail to comply
with these obligations.

Under the amended UBO Act, the UBO of a Czech company is now any individual who ultimately owns or controls the company. This includes any individual who directly or indirectly, through another person or legal arrangement,

• holds an ownership interest or a share representing more than 25% of voting rights in the Czech company;
  has a right to a share exceeding 25% of the profits, other funds or liquidation balance distributed by the Czech
  company;
• exercises a controlling influence in a corporation or corporations, which, individually or jointly, have an interest
  in the Czech company exceeding 25%; or
• exercises decisive influence in the Czech company by other means (e.g. by a side-agreement).

Contrary to the previous legal rules, the option of Czech entities to register their local directors as the UBOs in theUBO register, which to some extent is publicly accessible, is now very limited.

Company obligations and sanctions for non-compliance

According to the amended UBO Act, Czech companies’ obligations include the following:

• collecting and recording complete, accurate and up-to date data on its UBOs;
• recording the steps undertaken in the course of identifying its UBOs;
• keeping records of the above for the duration of the status of the UBO and for ten years after this position has
  ceased;
• keeping its entry in the UBO register current and updating the registration without undue delay after each
  triggering event; and
• providing all necessary cooperation to public authorities upon their request.

If a Czech company fails to provide information on its UBOs following a court request or update its registry records following a court decision on discrepancy, the company (and in some cases even the parent companies) could face a fine of up to CZK 500,000 (approximately EUR 20,000).

In addition, non-compliance could lead to a ban on payment of dividends to an unregistered UBO, as well as prevent
an unregistered UBO from exercising their shareholder rights at a general meeting.

Conclusion

Non-compliance with UBO rules may considerably impact transactions, any planned corporate restructuring or
financial distributions.

For example, if the UBO registration is not up-to-date and a seller has their shareholding rights suspended due to the missing or outdated UBO registration, such seller is prevented from adopting a resolution on the transfer of business or restructuring until the UBO register is updated. Considering that some UBO registrations may take days or even weeks to be processed, failure to comply may have a significant adverse effect on a transaction or restructuring.

For more information on the UBO Act, contact your CMS client partner or local CMS experts.

This article was written by CMS partner Lukas Janicek and was first published on CMS Law-Now on October 13, 2022, available here.

Düsseldorf – Gelsenwasser AG has sold its Czech business in water supply and wastewater disposal, as well as heat and power generation, to the Accolade Group. Gelsenwasser is ending its successful involvement in the Czech region of Karlovy Vary (Carlsbad) after more than 25 years and will in future focus on its activities in Germany and Poland.

100 percent of the shares of Gelsenwasser Beteiligungen SE were sold. Gelsenwasser Beteiligungen SE, in turn, held 28.16 percent of the shares in CHEVAK Cheb a.s. and 50 percent each in TEREA Cheb s.r.o. and KMS KRASLICKÁ MĔSTSKÁ SPOLEČNOST s.r.o.. The transaction is currently awaiting approval from the competition authorities.

An international CMS team headed by Dr Marcel Hagemann and Katharina Mareike Franitza advised Gelsenwasser AG on all legal aspects of this transaction.

Gelsenwasser AG is a listed German infrastructure and utility company. Its activities include, in addition to water, gas and electricity supply and wastewater disposal, services for infrastructure, renewable energies, digital networks and neighborhood concepts.

The acquirer is the Czech Accolade Group, which operates numerous industry parks in the Czech Republic, Poland, Germany, and Slovakia. The stakes in the three Czech companies are Accolade’s first investment in the infrastructure sector.

CMS Germany

Dr Marcel Hagemann, Lead Partner, Düsseldorf

Katharina Mareike Franitza, Lead Counsel, Düsseldorf

Artur Baron, Counsel, Düsseldorf

Nicole Mundhenke, Senior Associate, Düsseldorf

Jan Lukas Hölscher, Senior Associate, Düsseldorf

Kai Lichtenberg, Associate, Düsseldorf, all Corporate/M&A

Thomas Gerdel, Partner, Düsseldorf

Dr Martin Friedberg, Counsel, Düsseldorf, both Tax law

CMS Prague

Lukas Janicek

Lukas Reichmann

Jan Gerych

Huyen Vuova

You can find our press kit here: https://cms.law/en/media/local/cms-hs/files/other/cms-press-kit-en

CMS: European M&A Outlook, Boom and Gloom?

We are pleased to share with you the CMS 2023 edition of the European M&A Outlook, Boom and Gloom?

This tenth edition offers a comprehensive assessment of dealmaking sentiment in Europe’s M&A market and reflects the opinions of 330 corporates and PE firms based in Europe, the Americas and APAC, about their expectations for European M&A in the year ahead.

This year, against a challenging backdrop – economic headwinds, repercussions of the war in Ukraine, seller/buyer valuation gaps and a difficult financing environment – deal makers are remarkably bullish.

Key findings of the report include:

1. M&A expectations run high: 73% of deal makers expect the level of European M&A activity to increase over the next 12 months, compared to just 53% last year. Almost all respondents (88%) are currently considering M&A.
2. Undervalued targets and distressed sales to drive activity: The biggest buy-side driver of M&A is expected to be the availability of undervalued deal targets. On the sell-side, distressed situations are expected to be the biggest driver, cited by 26% of respondents.
3. Valuation gaps: seller/buyer valuation gaps are seen as the biggest obstacles to M&A.
4. Cost of financing to increase: As many as 87% of all respondents expect financing to be tighter compared with 2021 – this includes 45% who expect it to be much more difficult.
5. ESG rises up the M&A agenda: Some 90% of respondents expect ESG scrutiny in their dealmaking to increase over the next three years, compared to 72% in 2021’s survey.

1. TMT reigns supreme: Technology, Media and Telecommunications (TMT) is the sector predicted to see the greatest growth in dealmaking.

This year we have also added special editorial features including:

1. An analysis of ESG in M&A transactions
2. An examination of trends in M&A disputes
3. A spotlight on M&A in the Nordics

A short video with highlights of the study can be found HERE.

To study the report click here.

Dear CVCA members,

We would hereby like to invite You with a 20% Discount as “sister members” to our event on the 14th October, Friday afternoon at the Budapest Music Center.

Please find hereunder Agenda for the event, along with all the speakers.

We would kindly like to ask you to REGISTER with the below code.

Coupon code: FRIENDS2022.

Online participation is also available, in case you are interested just let me know.

Kind regards,

Katerina

Dear CVCA Members,

The Board of HVCA is kindly invite you to the 23rd Annual Conference of the Hungarian Private Equity and Venture Capital Association (HVCA), which will be held on October 7, 2022, at the Budapest Marriott Hotel.

This one-day event brings together more than 150 participants representing private equity funds, Funds-of-Funds, venture capitalists, CEOs of PE-backed companies, Banks, ambitious start-ups, business angels and more.

Main topics:

• COVID, war, sanctions; the economic impacts of all of them on the economy
• Challenges of Hungarian Start-up Investing
• The challenges and rewards of cross border, co-investment
• Life after exit of the financial investors
• Workforce recruitment, retention, and motivation

For further information on the event please click on the below link:

HVCA 23rd ANNUAL INVESTMENT CONFERENCE 2022

For immediate registration please click on Registration

The member companies of CVCA will receive 20% discount of the conference participation fee. Please indicate the 20% discount in the registration form by ticking the box- discount for CVCA members-.  Please note that the registration fee contains intermediate services (catering), to this the discount does not apply.)

Kind regards,

Katerina

ESPIRA Investments (ESPIRA), a Prague-based private equity firm investing growth capital in SME companies based in Central Europe has exited ICON Communication Centres s.r.o. (ICON), a Czech multilingual business process outsourcer (BPO) to yoummday GmbH, the marketplace and technology platform that matches independent entrepreneurs with companies needing customer service talent.

ICON has provided international companies with outsourced customer operations functions since 2003. The company was co-founded by CEO Helen Hickin after identifying Prague as an ideal nearshore location due to its geography, advantageous price point, and the depth of multilingual talent available. ICON is capable of providing complex customer interactions in 30 languages and counts several of the world’s most well-known travel, telecommunication, and education technology companies within its client portfolio.

ESPIRA and ICON’s executive management team acquired ICON in 2019 in a management buy-out transaction that aligned with the private equity firm’s diversity-oriented investment focus. Emília Mamajová, ESPIRA’s Co-Founding Partner, stated “Our goal together with the management team was to develop ICON on the international arena as a successful independent provider of high value-added services – and over the past three years Helen and her team have succeeded in reaching this objective. We congratulate them and wish the team continued success in their partnership with yoummday.”

“Over the past twenty years, the BPO sector has changed significantly, and our investment cooperation with ESPIRA was key to strengthening ICON’s positioning in this fast-changing environment. Through innovative technology, yoummday has found an exciting new way for companies to outsource operations with greater flexibility. Now is the right time for ICON’s next phase of evolution and yoummday is the ideal partner to ensure ICON’s clients continue to benefit from innovative delivery solutions”, states Helen Hickin, CEO, ICON Communication Centres.

The purchase of ICON is yoummday’s first acquisition which accelerates the company’s international expansion as it seeks to disrupt traditional BPO and contact centre models. ICON brings significant benefits and expertise with respect to native-level multilingual capability, global reach, and B2B customer experiences.

“The acquisition of ICON furnishes the opportunity to strengthen our growth strategy, which is predicated on integrating traditional BPO operators into our own proprietary marketplace platform. We look forward to working with the ICON team and weaving their unique capabilities into the yoummday brand”, emphasized Dr. Klaus Harisch, CEO and Founder of yoummday.

ICON’s C-Team will continue to operate alongside yoummday, and the ICON brand remains in in operation for the foreseeable future.

The transaction was concluded on the 20th of July 2022 and the parties have agreed not to disclose the financial details of the transaction.

Global law firm Dentons has advised private investment firm B-Flexion and Affidea Group on the sale of the Group to Groupe Bruxelles Lambert.

Founded in 1991, Affidea is the largest European provider of advanced diagnostic imaging, outpatient, and cancer care services. Under B-Flexion’s ownership, the company has grown from 120 to over 320 centers across 15 European countries. With more than 11.000 professionals in its network, Affidea provides services to almost
12 million patients annually.

“Our team is delighted to have helped B-Flexion and Affidea for the next phase of the Group’s growth,” said Rob Irving, Co-Head of the Dentons’ Europe Corporate and M&A Group, who led the legal team on the transaction. “This deal showcases Dentons’ capabilities in major cross-border transactions throughout Europe, as well as in highly specialized and regulated sectors such as healthcare.”

“We were pleased to have had Dentons by our side to facilitate a smooth and efficient sale process,” said Carole Ducrest, General Counsel of Affidea Group. “With their broad experience and capabilities in both the healthcare and private equity sectors ensured that they were ideally positioned to support this strategic important transaction”.

Partner Rob Irving and Senior Associate Kamran Pirani co-led Dentons’ cross-border team on the deal, supported by associates Sebastian Ishiguro and Brigitta Kovács (Budapest); partner Petr Zákoucký and senior associate Adam Přerovský (Prague); pharmaceutical consulting director Maria Samolińska-Hojda and counsel Adam Odojewski (Warsaw); partner Perry Zizzi and counsel Doru Postelnicu (Bucharest); partner Ilaria Gobbato, with senior associates Ferdinando Bonofiglio and Carla Piccitto (Milan); partner Nieves Briz and counsel Natalia Ontiveros (Barcelona); associate Natalia Palomar (Madrid); partner Dogan Eymirlioglu, counsel Cisem Altundemir and associate Denizhan Uslu (Istanbul); partner Namik Ramić and associate Jade Serres (Luxembourg).

Dentons advises GeneProof on merger with American Laboratory Products Company

Global law firm Dentons advised Radek Horvath and Miloš Dendis, the founders of GeneProof a.s. (“GeneProof”), a leading Czech molecular diagnostics company, in connection with its combination with American Laboratory Products Company, Ltd., a US specialty in vitro diagnostics company, leading to the establishment of ALPCO Group.  The main shareholders of the new group will be Ampersand Capital Partners, a US private equity fund, Radek Horvath and Miloš Dendis.

GeneProof provides customers with technologically advanced solutions in the field of molecular in vitro diagnostics of serious infections and genetic diseases. The ALPCO Group aims to become a global market leader in the diagnostic products market, with broad capabilities spanning novel immunoassay testing kits, real-time PCR testing products, and automated laboratory instrumentation solutions.

Partners Jan Procházka (Prague) and Ilan Katz (New York) led Dentons’ legal team on the transaction. The team included Daniel Hurych, Vojtěch Novák, Adam Přerovský, Petr Kotáb, Ondřej Valeš, Blanka Crháková and Michal Pelikán (all Prague).

Commenting on the transaction, Jan Procházka said: “We are delighted that we have had the trust of GeneProof´s founders to advise them both in the US and the Czech Republic on this transaction.  This deal is part of the inspirational story of two Czech entrepreneurs, who have developed unique technology and know-how and now have taken another bold step to achieve their vision.”

Radek Horvath, the CEO of GeneProof, said: “We were grateful to have Dentons by our side. Their overall performance and cooperation across borders was stunning and I believe they were vital for the success of the transaction.”

ARX Equity Partners (“ARX”), a Central European lower-mid market private equity firm, today announces the completion of the majority acquisition of Brebeck Composite s.r.o., a Czech headquartered manufacturer of composite products from carbon fiber (“Brebeck” or the ”Company”). The financial terms of the transaction were not disclosed.

Brebeck was founded in 2011 by Thomas Brebeck and Marcel Benda, in order to utilise Mr. Brebeck’s extensive track record and expertise in carbon fiber manufacturing in Germany over almost 20 years. Brebeck is now one of the leading European manufacturers of carbon fiber parts and components, used mainly in technically demanding motorsport activity and automotive applications.

In addition to its facility in Senov, Czech Republic, Brebeck also operates internationally through its wholly owned subsidiary in Deggendorf, Germany. The Company generates annual sales in excess of €10 million, with more than 160 employees. Brebeck’s customer base includes several prominent word-class players in the motorsport market, such as KTM AG, BMW AG, Porsche AG and Audi AG.

Moving forward, both founders will retain a significant minority stake in the Company and Mr. Brebeck will continue to drive the further growth and development of the business. The Company’s primary strategic focus will remain centered around servicing its blue-chip, anchor customers in the motorsport and automotive industries while also broadening its product offering to customers in the aerospace market.

Bird & Bird’s Prague office is relocating to Karlín.

After almost 15 years in the Czech market, Bird & Bird’s Prague office will relocate to Missouri Park in Karlín, Prague 8 in October later this year.

Missouri Park is part of the River City Prague urban district project developed by real estate company CA IMMO located on the banks of the Vltava River close to Florenc metro station.

“We have outgrown our current office in the Prague city centre. When looking for new premises we wanted to ensure that the new location not only suited our further growth requirements but above all reflected our core values – a dynamic, innovative, and responsible law firm. At Missouri Park we found everything we were looking for – modern tech facilities, smart energy solutions, as well as a healthy workplace for our people set in city greenery,” says Ivan Sagál, Managing Partner of Bird & Bird for Czech Republic and Slovakia.

“We are starting an exciting new chapter for Bird & Bird in the Czech market and our new office will no doubt support further development of Bird & Bird’s reputation as a strategic partner for innovative projects, often involving disruption or breakthroughs in our clients’ activities or in their sectors,” adds Vojtěch Chloupek, partner and head of the Intellectual Property practice and the Tech & Comms sector group in the Czech market.

In recent years, Karlín has become a vibrant district attracting people, as well as Czech and international companies. Continued investments and development of adjacent areas has produced closer connections with its surroundings, both with the neighbouring Štvanice island and Holešovice district, and with the newly built bridge HolKa which is due to open in spring 2023.

Bird & Bird selected architects from studio archicraft to help with the interior design of the office. Jones Lang LaSalle assisted with consulting services during the premises selection process, negotiated the terms of the lease agreement, and provided project management support.

Bird & Bird LLP is an international law firm which supports organisations being changed by the digital world and those leading that change. Over the years it has become one of the most dynamically growing law firms in the world and is renowned in the field of intellectual property and technology law. It is one of the first international law firms in the world to gain ISO27001 Information Security Management certification.

MidEuropa, the leading private equity firm in Central and Eastern Europe, is pleased to announce that Vesna Sipp has joined the firm as partner, Head of Investor Relations and member of the Investment Committee. She will be based in MidEuropa’s London office and will also lead the firm’s ESG and diversity efforts. Vesna was previously Head of Client Relations at ICG and prior to that, Managing Director at Hamilton Lane.

Managing partner Robert Knorr said: “I am delighted to welcome Vesna to MidEuropa. This is an important step in ensuring we continue to provide the highest standards of communication and service to our investors as well as introduce a senior leader to our ambitious ESG and diversity agenda.”

Senior investment partners Pawel Padusinski and Kerim Turkmen added: “Vesna already knows us well as an investor in our funds and as a long-time friend of MidEuropa. We are excited to have her on board and look forward to working with her closely.”

Dear CVCA members,

let me pass the invitation to the Poland & CEE Private Equity Conference 2022, held on the 10th of May 2022 in InterContinental Warsaw.

Top industry professionals and asset managers are gathering for the 8th edition of the Poland & CEE Private Equity Conference hosted by Private Equity Insights. They are ready for a full day of unparalleled opportunities and actionable insights, laying the foundation for future business. Meet 300+ handpicked attendees including prominent private equity investors across the CEE region, as well as global asset managers and get their groundbreaking perspectives. It is the perfect place to meet LPs, GPs, and PE/VC Target Companies.

For more details such as speakers and agenda, click HERE.

We are happy to inform you that CVCA Members are eligible for a special price. If you want to take advantage of the exclusive 30 % discount, please use the registration link: https://pe-insights.com/private-equity-conferences/poland/register/ and use the code cvcacz30 to get your discount.

Limited Partners are invited to attend the conference for free. To get tickets, reach out to sebastian@pe-insights.com.

For any inquiries, contact the organizer at sebastian@pe-insights.com.

Kind regards,

Katerina

ESPIRA Investments (ESPIRA), a CEE focused private equity investor, is pleased to announce the acquisition of a majority shareholding in Premier Clinic, a rapidly growing provider of aesthetic medicine in the Czech Republic. ESPIRA‘s investment has been made in partnership with Premier Clinic’s founder to strengthen and expand the company’s successful concept of high-quality care.

Premier Clinic offers comprehensive treatments in plastic and aesthetic surgery, corrective and laser dermatology and preventive medicine, treating Czech and international clients. In just a few years, Premier Clinic has become one of the top Czech clinics in its field with annual revenues of over EUR 4 million. The company’s management team is focused on growing the company in a sustainable and client-focused manner while delivering premium care and innovative treatments with an unwavering emphasis on safety. Furthermore, by regularly upgrading technology and equipment, clients are able to achieve better outcomes with shorter recovery times.

The Premier Clinic medical team is headed by the esteemed plastic surgeon, Dr. Lucie Zárubová. Thanks to her and the cohesive and respected medical team, Premier Clinic is able to attract and develop young and talented plastic surgeons and specialists.

“I am pleased to welcome ESPIRA as our new partner and I look forward to embarking on the next chapter of sustainable development while leveraging ESPIRA’s experience, broad network and strong financial expertise. We see expansion opportunities in the market and ESPIRA can support us realizing such new strategic initiatives,” said Martin Frank, CEO and Founder of Premier Clinic.

“The ESPIRA team is excited to support Premier Clinic’s successful strategy and to contribute to the further acceleration of its expansion by increasing capacity to address growing market demand, broadening its treatment offering and strengthening operational excellence. Premier Clinic has proved to be a resilient and agile company which grew even during the COVID-19 pandemic, and this is very encouraging,” said Emília Mamajová, Founding Partner of ESPIRA Investments.

ESPIRA was advised on the transaction by a legal team of Konečná & Zacha. The terms of the transaction were not disclosed.

MidEuropa is pleased to announce that its portfolio company intive has completed three acquisitions to expand its global footprint and accelerate its scale-up in a fast growing and consolidating market.

The digital design and engineering services specialist operates an outsourced digital product development model which combines local onshore presence with nearshoring delivery capability in Central and Eastern Europe (CEE) and Latin America, in order to tap into a deep and high quality pool of IT talent. intive’s 2,800+ digital natives serve blue-chip clients including Ericsson, Audi, BMW, Vorwerk, BASF, Viacom, Discovery and Tandem.

intive’s recent acquisitions include:

• US-based Spark Digital, a digital consulting, design, and development services provider, which significantly expands intive’s US presence as well as Media sector domain expertise. Spark Digital serves multinational enterprise clients with US onshore presence combined with nearshore delivery in Argentina and across greater Latin America (December 2021)

• US-based SimTLiX, a digital transformation partner for some of the biggest Fortune 500 companies, which further boosts intive’s regional presence in the Americas and strengthens its domain expertise and value offering for customers in FinTech, Telecom, Healthcare and Retail sectors (November 2021)

• Ireland-based Ammeon, a digital transformation and solutions partner, which extends intive’s regional presence in the UK & Ireland and its capability for customers in the Telecommunications sector, as well as the cloud domain and DevOps practices (May 2021)

MidEuropa acquired intive in February 2019, following early identification and approach to management and shareholders. Under MidEuropa’s stewardship, intive has expanded its delivery and design studios across existing and new geographies and more than doubled its workforce. intive is headquartered in Munich, with broad revenue and delivery coverage across Europe and the Americas.

Gurdeep Grewal, Chief Executive Officer of intive, said, “These acquisitions are helping us to achieve our global ambitions more quickly. MidEuropa’s support in helping to identify and approach businesses is invaluable, helping make a time-consuming and complex undertaking more straightforward. Their experience gives us confidence and strength in processes.”

Kerim Turkmen, Partner at MidEuropa, said, “The phenomenal growth intive is achieving is down to the impressive ambition of the team as well as the exciting global opportunity for their offering. We are delighted to support strategic priorities and devote capital and M&A resources to enable the team to accelerate growth and achieve international scale.”

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), is to acquire a significant minority stake in Ekoenergetyka-Polska (Ekoenergetyka), a high-technology company focused on power charging solutions for electromobility.

• The fund will invest over EUR 45 million in Ekoenergetyka-Polska and other projects related to e-mobility;
• The transaction is conditional upon obtaining antimonopoly approval.

Ekoenergetyka is a Polish technology company offering unique solutions for the global market. Its main activity is the design and production of charging infrastructure for electric vehicles used in public and commercial transport, as well as private cars. The electromobility sector has grown rapidly in recent years, propelled by technological developments and more environmentally conscious customer choices. A stable, widely available and, above all, technologically advanced charging infrastructure is needed to keep up this growth momentum and meet the market’s present and future requirements. Ekoenergetyka is one of just a few players in the world offering such solutions.

Established by Mr. Bartosz Kubik and Mr. Maciej Wojeński in 2009, Ekoenergetyka grew out of an academic research project. Today, the company is a leading provider of advanced high-power charging solutions and has the potential to go global. Its products and services have been implemented in the largest European cities, including in Barcelona, Berlin, Hamburg, Munich, Paris and Warsaw. Thanks to its continually expanding R&D capabilities, superior research facilities and first-class production equipment, Ekoenergetyka is the technological leader in the field and successfully competes with international peers. Product development – from R&D through design and construction to sales and marketing – is carried out in-house. Ekoenergetyka also offers a broad range of maintenance and after-sales services that include 24/7 monitoring of charging stations and remote customer support in Polish, English and German. The company is led by a young management team with the right mix of vision, expertise and motivation to execute their ambitious expansion plan.

“We strongly believe in the electromobility sector’s dynamic growth and are very impressed by Ekoenergetyka’s innovation and technological sophistication as well as by how the company is commercializing its solutions,” said EI partner Sebastian Król, who is in charge of the deal. “The company’s unique experience and flexibility as well as the high quality of its products are appreciated by the most demanding customers in Poland and abroad. Ekoenergetyka’s solutions have been selected and implemented by the largest public transport operators in Poland and Europe, as well as by the major charging and fuel distribution networks. Thus the company is helping shape the development of this extremely fast-growing young market. This is an advantage we plan to use to reinforce Ekoenergetyka’s leading position,” he added.

“We decided to team up with Enterprise Investors to benefit from their experience in developing young entrepreneurial companies that are in a rapid growth phase. Ekoenergetyka is planning swift expansion, primarily in foreign markets. For this next step in our company’s development we sought a strong financial partner that would support us with both capital and experience. Now we can focus on becoming the number one player in the market,” said Bartosz Kubik, Ekoenergetyka’s co-founder.

“With Enterprise Investors’ support we intend to continue growing dynamically and developing our technological, production and organizational potential even faster, to build the best solutions for the zero-emissions transport of the future. Customer satisfaction at every stage is our priority, so I am pleased we have a partner with whom we will achieve our most ambitious goals in terms of production, service and maintaining our systems at peak efficiency,” added Maciej Wojeński, co-founder of Ekoenergetyka.

Enterprise Investors was supported on the legal side by DLA Piper Giziński, Kycia sp. j.; Ekoenergetyka-Polska and its founders were represented by the law firm Rubicon Kancelaria Radców Prawnych i Adwokatów Barbara Łągiewka sp. k.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), has become a 40.6% shareholder in FinGO, the fastest-growing financial services intermediary in Slovakia.

• The fund has invested EUR 19.1 million;
• EI has teamed up with Mr. Lukáš Novák (InTeFi Capital), the company’s founder, to boost FinGO’s dynamic growth in Slovakia and the Czech Republic.

FinGO is an innovative financial services intermediary with a multi-channel distribution platform. The company sells mortgages and life insurance primarily, but also investments, pension savings and non-life insurance. It was founded in Slovakia in 2017 with the aim of building a technology-based ecosystem. The idea was to connect all the major financial institutions (e.g. banks, insurance providers and savings companies) with end customers, thus optimizing their choices. Thanks to FinGO’s unique business model users can compare complex products online, gain a better overview of what is available on the market and make more informed decisions. After running an initial analysis through the online platform they are served by one of FinGOo’s more than 1,000 exclusive agents, who can usually offer them an even better deal. FinGO gives its network of agents the best combination of commissions and product selection, comprehensive CRM system and back-office functions as well as extensive product and marketing support.

Thanks to its unique online lead-sharing platform and rapidly growing network of agents, FinGO is now the fastest-growing financial intermediary in Slovakia. This year the company expanded into Czechia, where it aims to replicate its successful business model. FinGO’s sound market position is reflected in its strong financial results – in 2021 the company plans to top EUR 23 million in revenues.

“We are convinced that the market of third-party financial product intermediation in Slovakia and Czechia will grow steadily in the coming years. FinGO was the first player to address the growing needs of customers looking to compare complex and high-value financial products online. Our plan is to build on this innovation and tap prevailing trends. We want to grow the business both organically and through acquisitions,” said EI managing partner Dariusz Prończuk, who is responsible for this investment.

“FinGO provides a very complex service. The company helps customers find optimal solutions at reasonable prices that would not be available to them without such intermediation. Through its marketplace FinGO also provides agents with new customer leads and other useful tools – not available elsewhere – that make their work more efficient,” added Martin Chocholáček, a vice president at Enterprise Investors who is responsible for the firm’s activity in Slovakia.

“I highly value the Enterprise Investors team’s trust and their appreciation of FinGO’s unique concept. Thanks to their investment, we can not only start building a major player in the Czech market but also develop and expand the largest digital broker in Slovakia. With this strong partnership we will continue our journey of digitizing financial intermediation to build the broker of the future. EI’s extensive experience, not just in the financial sector, will certainly be a valuable asset for FinGO,” said Lukáš Novák, the company’s founder and chairman.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), today announced it will acquire a 60% stake in Focus Garden, owner of one of Poland’s most popular e-stores dedicated to garden furniture and accessories.

• The company founder – Mr. Sławomir Czajkowski – will remain its shareholder and will become chairman of the supervisory board;
• The value of the transaction has not been disclosed;
• The transaction is conditional upon obtaining antimonopoly approval.

Focus Garden was established in 2007 and was initially engaged solely in the import and distribution of garden furniture. Over time, the company developed an e-store in line with the prevailing retail trends. Today, focusgarden.pl is one of Poland’s largest specialist retailers focused on outdoor living. Its offer includes a wide selection of garden and patio furniture as well as other outdoor accessories, most of which – thanks to the company’s well-organized purchasing and logistics department – are available immediately.

Focus Garden operates in a very promising specialty retail niche in which it already holds a leading position. This is reflected in its good financial results – in 2021, the company’s revenues will exceed EUR 13 million.

“The funds we manage have invested over EUR 350 million in 17 companies operating in the retail sector, including e-commerce. We intend to use this extensive experience to support the further development of Focus Garden,” said Bartosz Kwiatkowski, a partner at Enterprise Investors who is responsible for this investment.

Commenting on the transaction, Sławomir Czajkowski, the founder of Focus Garden, said: “I am proud that the company I created has secured a strong investor who will help us reinforce its position in its current market and successfully enter new ones.”

We are pleased to provide you with this year’s edition of the “European M&A Outlook”, published in co-operation with Mergermarket.

71% of dealmakers agree that private equity (PE) firms are better placed than corporates to take advantage of buying opportunities presented by COVID-19, according to the ninth edition of the European M&A Outlook, published by CMS in association with Mergermarket.

The report offers a comprehensive assessment of dealmaking sentiment in Europe’s M&A market. It reflects the opinions of 330 corporates and PE firms based in Europe, the Americas and APAC about their expectations for the European M&A market in the year ahead.

While financial buyers may be better placed than strategic buyers, more than half of survey respondents expect the overall level of European M&A activity to increase over the next 12 months, with both corporates and PE firms eager to make up for lost time. This stands in stark contrast to last year’s poll, in which 78% of interviewees were preparing for a decrease in M&A.

Key findings from our survey include:

• A brighter outlook: 53% of respondents expect European M&A activity to increase over the next 12 months (compared to only 2% last year)
• Low valuations and distress: 24% see undervalued targets as the most important buy-side driver of M&A activity. 22% identify distressed-driven M&A as the most important catalyst for sell-side activity.
• Private equity in pole position: 71% agree that financial buyers are better placed than strategic buyers to take advantage of buying opportunities in the post-lockdown revival.
• ESG gaining importance: 72% expect ESG scrutiny to increase during the next three years.

Our features in this year’s report include an editorial on Earn-Outs in the time of COVID-19 pandemic, an editorial on the CEE Hotel Investment Scene, ESG considerations in M&A deals for the year ahead and Brexit and FDI considerations.

Please note that our annual CMS European M&A Study will be published in spring 2022 when we will report back on how this market has impacted M&A transaction terms and conditions.

For more details on CMS´s report click here.

Dear CVCA members,

one of the other conferences held in Hungary is the Hungarian Impact Day which is organized by THBE Association (more info THBE – Társadalmi Hasznosságú Befektetők Egyesülete) on the 14th of October 2021 in Radisson Blu Béke Hotel Budapest.

This conference will be held under the patronage of the President of the Republic of Hungary János Áder and its main topic is Relationship between ESG and Impact Investment. For more agenda, and list of speakers please visit THBE Hungarian Impact Day.

The conference is hybrid so you can participate in person, or virtually.

Among the speakers, you can meet:

• Sir Ronald Cohen
• Dr. Cornelius Walter: Lightrock
• Cyril Gouiffes: European Investment Bank
• Alexander Langguth: Übermorgen Ventures
• Nick de La Forge: Planet Ventures
• Dominik Varga: Erste Asset Management GmbH
• László Gáti: OTP Fund Management
• Zsuzsanna Répássy: Ittaszezon!
• and others

As a partner, we are glad to share a 20% discount for our members. If you are interested, please register HERE, using the code THBE_FRIENDS.

In case of any questions, please contact directly bogsch.nora@thbe.hu.

Dear CVCA Members,

As a partner of 0100 Conferences, we would like to kindly invite you to the next Private Equity & Venture Capital Conference, scheduled for November 24, 2021, in the Primate’s Palace in Bratislava, Slovakia. You can look forward to meeting in person 200 PE & VC professionals. You will have a chance to hear the latest industry insights from speakers such as:

• Andrej Kiska: Credo Ventures
• Karol Szubstarski: OTB Ventures
• Rustam Kurmakaev: Mid Europa Partners
• Julia Sohajda: Vespucci Partners
• Maximilian Schausberger: Elevator Ventures
• Martin Chocholacek: Enterprise Investors
• Pekka Maki: 3TS Capital Partners
• Marek Malik: Jet Investment
• Jaroslav Luptak: Neulogy Ventures
• Michal Rybovic: Sandberg Capital
• Michal Aron: ARX Equity Partners
• Bartolomiej Gola: SpeedUp Group
• Slavo Tuleja: ZAKA VC
• Radoslav Tausinger: CVI
• Rudolf Vrabel: 365.fintech
• Karol Gogolak: G4 FRIENDS – Global Blockchain Funds
• and many others

Please find the complete agenda here: 0100 Conference Bratislava – The Leading Investment Conference – 0100 Conferences.

As a partner, we are glad to share a 15% discount for our members, using the promo code BA21CVCA.

Please register here.

In case of any questions, please contact directly pavol@0100conferences.com

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), will acquire an 80% stake in Snap Outdoor, a distributor of mountaineering and climbing equipment. The company also owns 8a.pl, Poland’s most popular e-store dedicated to active tourism and mountain sports.

• The company founders – Mr. and Mrs. Piotr and Elżbieta Czmoch – will remain minority shareholders and will team up with EI to facilitate the dynamic future growth of the business;
• The value of the transaction was undisclosed;
• The transaction is conditional upon obtaining antimonopoly approval.

Snap Outdoor is a distributor of mountain sports equipment and runs 8a.pl, the undisputed leader among specialty online retailers. 8a.pl trades apparel, footwear and accessories for outdoor activities and mountain sports such as climbing and ski touring. The company has two brick and mortar stores (in Warsaw and Gliwice, southern Poland), with a third location (in Katowice, southern Poland) due to open shortly. Snap Outdor was founded in 2001 in Gliwice, where its headquarters and logistics center are still located.

The company operates in a very promising market niche that is fueled by healthy lifestyle trends, the increasing popularity of outdoor sports (including mountain sports) and the rising disposable income of Poles. The outdoor sector is expected to continue its dynamic growth in the coming years.

8a.pl stands out from its competitors with its well curated assortment built around tourism and mountain sports. The company strategy is to offer only masstige and premium brands, which are otherwise not widely available. It also has the largest product availability among outdoor equipment specialists in Poland. Strong financial results confirm Snap Outdoor’s leading market position – revenues topped EUR 16 million in 2020, while this year they are expected to exceed EUR 23 million.

“We are convinced that Snap Outdoor’s business model can be successfully replicated in other CEE markets, which in most cases lack a clear market leader in outdoor e-tailing. Thanks to its broad experience in the specialized online retail sector and excellent logistics, the company can become a consolidation platform for other niche e-commerce segments,” said Enterprise Investors Partner Michał Kedzia, who is responsible for the firm’s investments in the retail sector, including Intersport ISI and Snap Outdoor.

“The greatest advantage of our online business is the broad base of returning customers, most of whom are passionate about mountain sports. With every product on the market being just one click away, this proves our strategy and focus on high quality have been key contributors to our success. We plan to make our offer available to mountain lovers from other countries of the region. Our goal is to become the favorite brand for outdoor enthusiasts in Central and Eastern Europe,” emphasized Piotr Czmoch, cofounder of Snap Outdoor.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, will acquire a 36.3% stake in Modular System, the largest Polish manufacturer of multi-function container and modular systems.

• The value of the transaction was undisclosed;
• The transaction is conditional upon obtaining antimonopoly approval.

Modular System is the undisputed market leader in the production of multi-function turnkey containers and modular systems based on the steel frame technology – the winning solution for temporary non-residential structures (e.g. office buildings, portable staff facilities, military containers). In contrast to traditional construction methods, this technology enables swift, flexible deployment at a fixed cost. It also allows for a high degree of prefabrication.

Modular System’s products are reliable, have a wide range of applications and represent good value for money. As a result, the company is developing dynamically and enlarging its geographical footprint in response to the needs of new market niches. Since 2020 Modular System has reaped the benefits of having a well-equipped and highly efficient new production plant in central Poland. The company’s strong market position is reflected by its excellent financial results. Revenues reached EUR 30 million last year, while in 2021 the company plans to almost double that figure.

“Paweł Brudnicki and Mariusz Brudnicki, the company’s founders, are directly responsible for Modular System’s spectacular success. We are convinced that their entrepreneurial approach, extensive sector knowledge and broad experience will allow us to jointly make the best use of the favorable trends in the construction industry and the advantageous macroeconomic conditions,” said EI partner Michał Kędzia, who is responsible for this transaction. “We expect container and modular technologies to increase in popularity in the years to come, translating into a strong demand for this type of construction. We believe Modular System will not only strengthen its leading position in Poland but will become a regional champion,” he added.

“We are proud that our company has attracted a strong PE investor. Thanks to EI’s backing we now plan to grow at an even faster pace, both by entering new markets and by expanding our offering in those sectors and geographies in which we are already present,” said Paweł Brudnicki, CEO of Modular System.

“Enterprise Investors’ strong track record in the construction industry, including the prefabrication segment, was an important factor in our decision-making process. Together, we plan to replicate this success in the utility containers and modular systems sector,” added Mariusz Brudnicki, a vice president at Modular System, who is responsible for sales and business development.

Polish Enterprise Fund VI, a private equity fund managed by Enterprise Investors, has sold Wento, a leading Polish renewable energy company specializing in photovoltaic projects. The buyer, Equinor, is a broad energy company with activities in oil, gas, offshore wind and solar energy in more than 30 countries worldwide.

• The value of the transaction is EUR 100 million;
• Total gross proceeds generated by the investment amounted to EUR 139 million.

Building on experience gained during its investment in Polish Energy Partners (PEP), now Polenergia, in 2012 Enterprise Investors made another investment in the renewable energy sector when it founded Wento. EI invited a group of experienced managers to run the project, including Wojciech Cetnarski, PEP’s founder and former CEO. Initially Wento focused on wind energy projects but in 2016 pivoted toward the solar energy market. In total, Wento has developed 177 MW of photovoltaic projects to the stage of securing contracts for difference in the auction framework mandated by the Polish government. With a secured pipeline in excess of 1000 MW of further solar projects, the company is well equipped to meet Poland’s growing demand for renewable energy.

“Our investment in Wento has followed the changing fortunes of Poland’s renewable energy market.  The management team led by Wojciech Cetnarski has shown it can adapt and persevere in its goal of building a company that contributes meaningfully to the green transformation of Poland’s energy sector while making good returns for its investors,” said Michał Rusiecki, a managing partner at Enterprise Investors who is responsible for this transaction. “We are convinced that under the new ownership Wento will gain the resources needed to become an even more important contributor to the renewable energy market in Poland,” he added. 

Genesis Growth Equity Fund I (GGEF I), a fund focusing on smaller and mid-size high growth potential companies primarily in the Czech and Slovak markets, reached its hard cap size of € 40 million following the final closing of the Fund in December 2020 with additional commitments from SPM Capital and Sirius Investments.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), will become the majority shareholder of Anwim, Poland’s largest independent operator of petrol stations trading under the MOYA brand. The company is also involved in fuel wholesale. Increasing EI’s involvement requires anti-monopoly approval.

Anwim was founded in 1992 by two entrepreneurs and initially it dealt solely with the wholesale of fuels. In 2009 the company launched retail operations under the MOYA brand and created an independent nationwide chain of petrol stations. Anwim is present in all Poland’s voivodeships, with outlets along the main transit routes and local roads as well as in towns and cities. In addition to petrol sales, the chain’s broad offer includes well-stocked mini stores, Caffe MOYA outlets selling food and coffee, car wash facilities and tailored services for business clients. MOYA leads the Polish market in terms of growth dynamics.

Enterprise Investors entered Anwim in 2018, when it had 180 petrol stations. Only in the first three quarters of this year the chain expanded by another 29 stations, and it is set to number c. 310 by the end of 2020. Last year, Anwim’s revenues amounted to EUR 900 million.

“We are very pleased that Mr. Witold Butkiewicz, Anwim’s founder, will remain a significant shareholder and chairman of the supervisory board. The last two years are irrefutable proof of how much can be achieved through harmonious cooperation between an entrepreneur and a private equity fund,” said Sebastian Król, partner at Enterprise Investors responsible for the investment.

Polish Enterprise Fund VIII (PEF VIII), a private equity fund managed by Enterprise Investors (EI), has announced a tender offer for 100% of PragmaGO, a provider of financial services to the SME sector. PEF VIII has secured the right to acquire from the majority shareholder, Pragma Inkaso, a stake that will give the fund 72.07% of votes at the general shareholders’ meeting. The maximum value of the tender offer is EUR 11.9 million.

• PEF VIII’s intention is to delist PragmaGO so it can continue its development in the private market;
• The subscription period for the tender offer will run from 16 December to 29 January 2021;
• The tender offer share price for the minority shareholders will be 35% higher, than for the majority shareholder. This price includes a 20% premium to the share price on the day preceding the tender offer announcement and is 37% higher than the average price of PragmaGO’s shares over the last six months;
• Once the tender offer is settled, EI plans to increase the company’s share capital by EUR 13.4 million at a price materially lower than the share price in the tender offer;
• If the required voting threshold is reached, the fund will take measures to squeeze out those among PragmaGO’s minority shareholders who did not respond to the tender offer.

PragmaGO operates in the non-banking financial market, offering customers such products as factoring and purchase financing and providing businesses with both working and investment capital. The company’s offer is tailored to the needs of small and medium-sized enterprises operating in Poland. By focusing its business model on automated online processes and distribution alliances with numerous partners, PragmaGO can offer customers a comprehensive range of solutions for improving their liquidity quickly and efficiently. After three quarters of 2020, PragmaGO held a portfolio worth EUR 21.2 million, had EUR 8.1 million of equity and EUR 0.4 million of net profit.

Dariusz Prończuk, the managing partner at Enterprise Investors responsible for the transaction, said: “Our aim is to delist the company from the Warsaw Stock Exchange. We believe that for PragmaGO to develop and make full use of the market’s potential it needs substantial capital injection, which we are willing to provide. In addition, we intend to support the company’s management with our broad experience from previous investments in the financial and technological sectors. All this can be achieved more efficiently and quickly once PragmaGO becomes a private company”.

To date, EI-managed funds invested EUR 322 million in 21 companies operating in the financial sector.

Abris CEE Mid-Market II LP fund, managed by Abris Capital Partners, the leading private equity investor in Central Europe, has signed an agreement to sell its stake in Cargounit, the largest independent locomotive lessor in Poland, to Three Seas Initiative Investment Fund (advised by Amber Infrastructure Group). Closing of the transaction is subject to the customary conditions precedent and is expected to take place by year-end.

Cargounit is the largest independent locomotive lessor in Poland, providing a comprehensive service offering, and is led by a highly experienced management team. Abris acquired a majority share in this company in May 2016 and subsequently invested additional capital for fleet expansion.

During Abris’ investment, the company has grown strongly, increasing revenues and profits more than threefold. Between 2016 and 2018, Abris helped drive this expansion through completing a staged acquisition of a large pool of locomotives, followed by targeted purchases of smaller fleets in subsequent years. During 2018-2020 the Company focused on investing in new fleet, including top-of-the-range locomotives, and completed a landmark, EU co-funded order for five brand-new multisystem locomotives specified for intermodal transportation.

Cargounit also implemented a number of key business initiatives focused on resilience of revenues and cash flows, as well as extension of its service offering. Many of these set new standards for the industry in Poland, increasing reliability and quality of service for key customers. Cargounit established itself as the clear market leader through prolonging and securing long-term contracts, extending its client base as well as its breadth of leasing options offered and introducing fleet management services. In addition, the business made significant improvements to its financing structure, successfully rebranded and implemented a dedicated fleet management IT system.

Edgar Koleśnik, Partner at Abris Capital Partners, commented:
“We are delighted with how Cargounit has grown, and especially how resilient this business has been this year. We are extremely proud to have created the largest independent locomotive lessor in Poland in strong cooperation with the founders and management team. We are pleased that the company can now go forward to the next stage in its growth with Three Seas Initiative Investment Fund (advised by Amber Infrastructure Group).

Wojciech Łukawski, Partner of Abris Capital Partners, added:
“It has been a pleasure to partner with Jacek Szczegodziński, Arkadiusz Ignasiak and Piotr Ignasiak – the founders of Cargounit – and the company’s management over the past four-and-a-half years. The progress that the company made was spectacular and we are proud to have been the part of that journey.”

Jet Investment is opening a new fund Jet Industrial Lease. Already third among the Jet funds, Jet Industrial Lease focuses on real estate. In the first year, Jet Investment wants to raise CZK 1 billion from private investors for the purchase and development of industrial and other real estates. Another CZK 14 billion should be raised within five years. The subscription period of the fund starts on November 1.

The Jet Industrial Lease Fund for qualified investors will focus primarily on the purchase of real estate from industrial companies, specifically creditworthy ones with a long-term perspective on the market. “We have been managing and developing industrial companies for more than twenty years. During that time, we have discovered that the industry offers considerable potential outside its core business, specifically in real estate management and development,” explains the Managing Director Igor Fait. He adds: “We know from our experience that performing effective asset management can become burdensome for a company, especially when it requires too much money or excessive effort and time. The thoughtful sale of its real estate property, on the other hand, can be a welcome financial injection for a company and a major impetus for the development of its core business. Also, Jet Investment can correctly evaluate the prospects of the future tenant and reflect his specific needs in the transaction.“

The Jet Investment team believes that it has found an ideal answer both for qualified investors, to whom it wants to bring high value with reasonable risk, and for the Czech industrial business. “Leaving the ownership, management and development of the property to a real estate specialist, while the business owner is only engaged in business, is quite common in Germany or Austria,” comments Libor Šparlinek, Partner in Jet Investment. “From a tax point of view, the building is depreciated for up to 50 years and the land is not depreciated at all, while the rent can be used as a cost item in each accounting period. Abroad, many companies have already understood this and prefer renting to ownership.“

Pavel Drabina, a new member of the Jet Investment team responsible for managing the real estate fund, assumes that during the first year the fund will invest an average of CZK 200–300 million in five properties respectively within Central Europe. “We are currently evaluating around 30 exciting acquisition opportunities, primarily from the industrial sector,” says the real estate team leader with 20 years of experience in real estate, project management and M&A, adding: “Real estate investing is irreplaceable in every investor’s portfolio, and not just as a hedge against inflation.”

The subscription period of the fund begins on November 1 with a minimum deposit of five million crowns; lower investments will be possible through the partner investment group Conseq[1]. The expected return of the open-end fund with an investment horizon of 5 years or more is expected to be 8% p.a.[2]. Four Jet Investment partners, including Igor Fait, will participate in it in the first year with a deposit of about 15%. The vision of the Jet Industrial Lease fund is to become a significant property owner throughout the European Union. “We are looking for acquisition opportunities mainly from the industrial sector, but also retail and office development, and although we initially want to focus on the Czech Republic and Slovakia, we are also looking at interesting opportunities in Germany, Austria and Poland,” concludes Drabina.

Jet Investment opens the Jet Industrial Lease fund after carrying out one of the most profitable divestments in the Jet 1 fund’s portfolio in recent years. For the Jet 2 fund, in which 170 private and institutional investors invested 4 billion crowns, the Jet team has so far acquired the TEDOM group, the company 2 JCP, and plans at least two more acquisitions by the end of next year.

[1] The fund is a fund of qualified investors; the minimum investment must meet the conditions for investment by a qualified investor.

[2] This is an estimate that does not guarantee future returns.

Investment in the customer proposition, management team and platform drives value creation

Allegro.eu (“Allegro” or “the Group”), a global top ten e-commerce platform and the leading and most recognised internet brand in Poland, completed its successful listing on the Warsaw Stock Exchange (“WSE”) today with its shares trading under the symbol “ALE”.  The listing, which was executed via a placing to both institutional and retail investors, represents the largest initial public offering (“IPO”) on the WSE to date. At the IPO price of PLN 43 per share, the implied market capitalisation is PLN 44 billion (€9.8 billion). 

Funds advised by Cinven, Permira and Mid Europa Partners (together “the Sponsors”) acquired Allegro.eu in January 2017 for US$3.25 billion (€2.75 billion). The value creation strategy involved investing in the experience and convenience of Allegro’s services to both consumers and merchants.  Initiatives included the development of a best-in-class mobile app, improved logistics solutions and pricing tools, and the launch of Allegro SMART! –  the subscription-based loyalty program whose subscriber base has grown to 2.1 million subscribers at 30 June 2020. 

The impact of these initiatives, under leadership of Allegro’s Chairman Darren Houston, CEO François Nuyts and the enhanced management team recruited to the Group, has been significant.  Over the lifetime of the Sponsors’ investment, GMV grew by 99%, net revenue by 102% and adjusted EBITDA by 113% on a last-twelve month (“LTM”) basis.  Most recently, GMV growth increased further to 54% (LTM to 30 June 2020) as consumers turned to Allegro to provide them with goods during the ongoing COVID-19 pandemic.

In addition to the significant business growth and value creation, Allegro has seen a substantial increase in employees from 1,380 at the end of 2016 to nearly 2,300 as at 30 June 2020.

Due to the strength of investor demand the original offer of shares was up-sized, with c. 182.6 million shares sold by the Sponsors in the IPO (in aggregate), raising PLN 7.85 billion (€1.76 billion) while retaining an aggregate equity stake in the Group of c. 73% post-listing (before exercise of the over-allotment option).  Should the over-allotment option be fully exercised, the Sponsors will realise a further PLN 1.38 billion (€308.72 million).

Commenting on the IPO, David Barker, Partner of Cinven said:

“When we originally invested in Allegro in 2017, it was a good business with a good reputation. We brought in a new management team, led by the highly experienced Chair, Darren Huston, and CEO, François Nuyts. Together with management and our co-shareholders, we focused on improving the experience for both customers and merchants on the platform and created the ongoing improvements evident in the operating metrics and financial performance of the business. As a result, Allegro is now a great business with an excellent reputation and has an exciting outlook for future growth.”

Richard Sanders, Partner of Permira added:

“Over the last four years, Allegro has grown from strength to strength. With a long-term growth mindset, the company has continued to make significant investments in headcount and technology to improve the consumer and merchant experience. This has spanned everyday retail basics – such as lowering prices and broadening selection – to longer-term strategic bets like Smart!, which are fundamentally transforming the quality of the online shopping experience in Poland. Today marks the next step in the company’s growth trajectory, and we are very excited to continue working with Darren, Francois and the management team.”

Paweł Padusiński, Partner and Head of Warsaw Office of Mid Europa Partners added:

“Allegro’s success story is one of the best testimonies to Mid Europa’s strategy focused on supporting the leading consumer facing businesses in Poland and Central Europe. During our investment in Allegro, we have provided our local investor perspective to the Board and, through our Warsaw based team, have worked closely with Allegro’s highly talented and motivated management. Jointly with our partners, we have helped develop Allegro into a Top 10 global e-commerce marketplace. I am very pleased that this CEE success story was recognized by so many reputable institutional and retail investors. Allegro can now start its new growth chapter as a public company, after having completed the largest ever IPO on the Warsaw Stock Exchange.”

Lazard & Co., Limited acted as Independent Financial Advisor; Goldman Sachs International and Morgan Stanley & Co. International plc acted as global coordinators and joint bookrunners; Barclays Bank PLC, BofA Securities Europe SA, Citigroup Global Markets Limited and Dom Maklerski Banku Handlowego S.A. as joint bookrunners; Santander Bank Polska S.A and BM PKO BP as joint bookrunners and co-offering agents in Poland in connection with its offer to retail investors;  Bank Polska Kasa Opieki Spółka Akcyjna, Crédit Agricole Corporate and Investment Bank, Erste Group Bank AG, Pekao Investment Banking S.A. and Raiffeisen Centrobank AG, as co-lead managers.

Clifford Chance acted as legal counsel to the Issuer; Allen & Overy acted as legal counsel to the underwriters; Greenberg Traurig Grzesiak acted as legal counsel to the underwriters with respect to legal matters of Poland and on the admission of Allegro shares to listing on the Warsaw Stock Exchange; PwC acted as reporting accountant; E&Y acted as tax advisor; FTI Consulting LLP and NBS Communications provided strategic communications advice to Allegro.eu internationally and in Poland, respectively.

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors (EI), will invest EUR 25 million in Software Mind, a Polish provider of software development outsourcing services.

• Software Mind is an operating division of Ailleron, a company listed on the Warsaw Stock Exchange. As part of the transaction it will be carved out from the parent company, subject to approval at Ailleron’s extraordinary general meeting;
• The transaction will consist of a EUR 9 million buyout of 26.7% of Software Mind shares from Ailleron and a EUR 16 million capital increase, which in effect will raise PEF VIII’s stake in the business to 50.2%.

Software Mind is a Polish software company founded in 1999. It develops comprehensive (end-to-end) software solutions for high-profile clients that include PE-backed financial and technological industry leaders as well as Silicon Valley unicorns. Among Software Mind’s many clients are companies from the fintech, healthcare and high-tech sectors from the United States, Great Britain and Scandinavia, as well as the four largest mobile operators in Poland and a few that are based abroad. The management team is led by its original founder and represents a well-balanced mix of commitment, seniority and technical expertise.

The company operates out of four development centers across Poland: in Kraków, Rzeszów, Warsaw and Bielsko-Biała, and employs 370 IT professionals. Software Mind establishes long-term partnerships with clients, helping them to scale their dynamically growing businesses. It has a strong track record in supporting the digital transformation of companies around the world by merging with their in-house R&D teams and working on product development as well as new channels of communication with the clients’ customers.

Software Mind has historically achieved very dynamic growth, both by acquiring new accounts and by increasing the scale of business with existing ones. The growth continues this year, as confirmed by record high account acquisition and strong year-to-date results, with sales reaching EUR 15 million after first nine months of 2020.

“The company’s long-term goal is to deliver specialization at scale, by providing high-level expertise in several industries or technologies”, said Rafał Bator, the partner at Enterprise Investors responsible for this investment. “I am convinced that the planned capital increase will enable Software Mind to quickly obtain new competencies and markets, also through add-on acquisitions. We plan to grow the company exponentially, and I think the expertise we have gained by investing in companies that are great examples of the buy-and-build strategy, such as AVG Technologies, BLStream and intive, will also come in handy”, he added.

Polish Enterprise Fund VII (PEF VII), a private equity fund managed by Enterprise Investors (EI), has signed an agreement to acquire the remaining 35% stake in PAN-PEK, a leading bakery producer and retailer in Croatia.

• EI agreed with Mr. Ivan Parać, the founder of PAN-PEK, to buy out his stake;
• PEF VII originally bought a 65% stake in the company in May 2018. Upon completion of the transaction, PEF VII will become 100% owner of PAN-PEK;
• The value of the transaction was not disclosed;
• The completion of the transaction remains subject to obtaining the customary anti-monopoly permit.

PAN-PEK was established in 1992 and is one of the biggest producers of frozen bakery products in the Adriatic region. The company serves modern grocery retailers in Croatia and operates its own 65-store chain of bakery outlets, predominantly in the Zagreb area but with a growing presence in other cities and larger towns as well as along the Adriatic coast. PAN-PEK sells a variety of breads, baguettes and sandwiches through grocery retailers and its own chain. It has been continuously developing its range in the past two years so as to offer its customer base the best products. The main factory is in Zagreb, with a second smaller plant located in Dakovo, Eastern Croatia.

“We would like to thank Ivan Parać for our partnership over the last two years. Mr. Parać is a highly experienced and skilled entrepreneur and under his management PAN-PEK has continued to acquire new customers and add new outlets to its retail chain, thus leading the company to achieve a record level of EUR 36 million of sales in 2019. We will carry on his efforts to strengthen PAN-PEK’s leading position in the Adriatic region under the leadership of the current CEO, János Király,” said Enterprise Investors partner Michał Kędzia, who is responsible for the investment.

Alexander Kosovský (34) joins Jet Investment as Director / Investment Projects. He will be responsible for the identification of investment opportunities for the Jet 2 Fund. “I am joining the team of Jet Investment at a dynamic time when, due to the economic turbulence of the past year in the Czech Republic and abroad, many exciting opportunities are opening up for investors. In the Jet 2 fund, almost three billion crowns are available for purchases, which we want to allocate to two to four projects,” Kosovský comments. “We see several attractive acquisition targets on the market that fit well into the funds’ investment strategy.” Alexander’s prior experience includes a position with Genesis Capital, where he was responsible for the identification of investment opportunities across industries in the Czech Republic, Slovakia and Poland. As Investment Manager, he led two investments – POS Media and Stangl Technik Česká republika/Stangl Technik Polska.He started his career in investment banking divisions at the Royal Bank of Scotland and J.P. Morgan in London and in transaction advisory at Ernst & Young in Prague, later he worked as an investment advisor for a major international industrial group. Alexander studied Economics and Finance at Queen Mary College in London and holds the CEMS Master in Management degree from HEC Paris and the University of Economics in Prague. He speaks Czech, English, Russian and French.

Genesis Capital, one of the largest private equity groups in Central Europe, is preparing to launch a new fund, Genesis Private Equity Fund IV (GPEF IV); the sixth private equity fund of Genesis Capital in the 20 years since its establishment. In a similar manner to its predecessors, GPEF IV will also focus on investments into small and medium-sized enterprises with high growth potential in the Czech Republic, Slovakia, Poland, Hungary and Austria. The fund’s target size is EUR 150 million and its first closing is expected at the beginning of 2021.

“We are pleased to be able to contribute to the development of businesses in the Czech Republic, Slovakia and neighbouring countries of Central Europe through our private equity funds. We believe that GPEF IV will facilitate growth of at least a dozen Central European companies that will be interested in this type of equity financing,” says Jan Tauber, Chairman of Genesis Capital Equity. “We want the new fund to replicate the attractive performance of our previous funds,” adds Jan Tauber.

“GPEF IV will invest in established companies with a strong growth potential, typically in situations where successful founders are considering suitable successors, or are looking for capital to grow their businesses, expand internationally or invest in innovations, or alternatively in cases where multinational groups looking to divest their non-core business units are searching for a suitable partner. We see a number of opportunities in this segment of the market which itself is growing and becoming more regional, so we decided to launch a new bigger fund to support them” says Ondřej Vičar, Managing Partner at Genesis Capital Equity. When speaking about GPEF IV’s strategy, he notes that “the fund will invest across a wide range of industries, but with preference for sectors where Genesis Capital funds have had a strong historical track record, such as B2B services, light and medium manufacturing, IT services and specialised retail and consumer services.”

Regarding its sixth private equity fund, Genesis Capital will follow the same investment strategy that has proven successful in the past. “We identify suitable investment opportunities using several basic criteria,” explains Radan Hanzl, Partner at Genesis Capital Equity. “First and foremost, the company must have a strong growth potential and demonstrate the ability to formulate and successfully execute its plans. A competent and experienced management team is another highly important factor. We rely on partnership with top executives of the portfolio companies. They usually invest alongside us and share the up-side as well as the risks of the investment,“ adds Radan Hanzl.

“Launching and developing a new fund is a great professional opportunity. We believe that despite the current situation, there are numerous companies with experienced management teams and the ambition of developing their business to a higher level that are at the same time able to efficiently use private equity capital. Our professional investment team at Genesis Capital is ready and looking forward to take on the challenge,” concludes Tatiana Balkovicová, Senior Investment Director at Genesis Capital Equity.

Through its fund of qualified investors Jet 2, the Czech-based investment company Jet Investment has acquired a 70% stake in 2 JCP, a company with a production plant in the Czech Republic and sales and technical branches in the United Kingdom and the USA. The Jet 2 Fund plans to further develop the successful supplier of filtration and acoustic solutions for leading gas turbine manufacturers and make use of synergic effects with other companies from its energy platform.

2 JCP employs a total of 315 employees in three countries and achieved approximately CZK 100 million in EBITDA last year. “In the first phase, the Jet 2 fund bought a 70% stake from three Czech owners, but we count on an option to buy another approximately 15% to present itself within four to five years. The remaining 15% will remain in possession of the group’s key managers,” explains Marek Palička, the project director in Jet Investment. At the same time, two of the three current Czech shareholders will remain active members of the management and will actively participate in managing and developing the company. “I took 2 JCP over from my father, who built the company from scratch. After 26 years of successful leadership, however, it is time to sceptre and find a partner with enthusiasm and sufficient resources to ensure the further growth and stability of the company. I have full confidence in Jet Investment. I believe that it will continue the work we have started, and in which I will continue to participate myself as a minority owner and manager,” comments the original majority shareholder Jan Pačes on the decision to sell his share.

In the usual fashion, Jet Investment is going to develop the company. “2 JCP has a high-quality management team that has been able to build a prosperous and robust company supplying products to the world’s largest OEMs. By combining their experience and our know-how, we will strive to strengthen 2 JCP’s position on the gas energy market,” comments Igor Fait, partner and founder of Jet Investment, on the acquisition of a company, the revenues of which have been growing at a double-digit rate in recent years. His team also plans to implement appropriate elements of a corporate governance structure to better correspond to a company operating in three countries on two continents.

Roklen Corporate Finance was an advisor during the entire sales process.

2 JCP with its headquarters and production plant in Račice and sales and technical branches in Great Britain and the USA was established in 1992. 2 JCP is a global supplier of equipment for gas turbines, submarine systems and pressure pipes, food and packaging structures. It supplies its products and services to 50 countries around the world and also has engineering offices and manufacturing facilities in North America, Europe and Asia. The company helps its customers achieve better performance and reliability through innovative air filtration, temperature and noise control solutions.

Polish Enterprise Fund VI, a private equity fund managed by Enterprise Investors, has sold its remaining 34.4% stake in Novaturas, the largest tour operator in the Baltic States, through a series of secondary transactions on Nasdaq Baltic. The transactions generated gross proceeds of EUR 4.9 million.

Novaturas was established in 1999 and soon became the most widely recognized tour operator in the Baltics. In 2007, Enterprise Investors acquired a 71% stake in the firm investing in its further growth. The company’s first-rate reliability and reputation, together with the Baltic States’ good macroeconomic position and growing consumption, have helped Novaturas become the number one market player in the region. Today it is the leading tour operator in Lithuania, Latvia and Estonia, both in terms of sales value and passenger volumes.

The company uses diverse and complementary distribution channels – it works with over 400 travel agencies, including all the major ones in the Baltics and more than 60 in Belarus. Novaturas also operates its own stores in Lithuania, Latvia and Estonia, and is developing an e-commerce channel. In 2019, the company reached EUR 179.9 million in revenues, with EBITDA of EUR 4.4 million.

On May 1, 2020, the Act No. 119/2020 Coll., which concern various legal regulations in the area of regulating business on the financial market, will enter into force. This Act, among other things, significantly amended Act No. 240/2013 Coll., on Management Companies and Investment Funds.

https://www.mfcr.cz/en/themes/capital-market/capital-market-in-the-czech-republic/new-english-translation-of-the-act-on-ma-38401

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Mid Europa Partners (“Mid Europa”), the leading buyout investor focused on the growth markets of Central and Eastern Europe, announced today the agreement to merge its portfolio company, CMC İletişim ve Çağrı Merkezi Hizmetleri A.Ş. (“CMC”), with Meritus Upravljanje d.o.o. (“M+ Group”), in return for a 30% equity stake in the combined group. M+ Group is a regional business process outsourcing service (“BPO”) provider and is a subsidiary of the company Meritus ulaganja d.d. (ZSE: MRUL), and CMC is the largest independent outsourced call centre and customer management services provider in Turkey with more than 4,000 employees. Following completion of the transaction, M+ Group is expected to emerge as the leading regional contact centre and business process outsourcing services provider in South Eastern Europe (“SEE”).

Kerim Turkmen, Partner of Mid Europa commented: “We are delighted to become a shareholder in a significantly larger and diversified regional operator. We believe in the long term growth prospects of the BPO industry in our region and globally and are committed to our future cooperation with M+ Group in creating the leading regional BPO services provider. The focus of the combined business will be on serving the most demanding international blue chip clients.”

Zvonimir Mrsic, President of the Supervisory Board of M+ Group commented: “The strength of the new group is reflected in the fact that this transaction makes us one of the largest private employers in Croatia, with more than 7,000 employees. M+ Group will now serve more than 220 clients in 58 countries worldwide, generating an annual turnover in excess of EUR 65 million. Our international expansion continues with a focus on the acquisition of new global clients and the export of services as we contribute to the economic prosperity of Croatia and the region as a whole.”

The transaction is expected to complete by the end of January 2020.

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Polish Enterprise Fund VII, a private equity fund managed by Enterprise Investors (EI), has signed an agreement to sell Danwood, the number one manufacturer of prefabricated turnkey houses in Germany and Poland. The buyer – GS Engineering & Construction – is one of the biggest construction companies in South Korea.

• The value of the transaction is EUR 140 million;
• Total gross proceeds generated by the investment amount to EUR 238 million, yielding a 9x total gross multiple of cost;
• The transaction is conditional upon obtaining antimonopoly approval in Poland.

Danwood, headquartered in Białystok and with two production plants in Bielsk Podlaski, designs and builds ready-to-move-in houses for individual customers. In December 2013, EI acquired the company in a carve-out transaction from Budimex SA. In the year of the investment Danwood delivered 685 houses, generating revenue of EUR 99 million. By the end of 2019, the company’s production capacity reached 2,000 houses and revenues exceeded EUR 274 million.

Between 2014 and 2019, Danwood invested over EUR 27 million in expanding its production capacities. The workforce more than doubled in this period, numbering more than 2,000 employees by the end of 2019. The company operates in five European countries, including Germany, where for the last four years it has been the top player in its market. With its comprehensive portfolio and value-for-money solutions Danwood is a one-stop shop for prospective homeowners looking to buy a turnkey house in the mid-range segment – the most attractive part of the market in terms of size and growth dynamics. Thanks to its best-in-class production facilities, construction site teams, engineering staff and architects, Danwood will continue to grow on the back of the prevailing market trends.

„It was a real pleasure to work with Danwood’s management team led by Jarosław Jurak” said Sebastian Król, the partner at EI responsible for this investment. „ogether we have built a company that not only surpassed the market in terms of growth, but tripled production capacity, developed a unique and effective approach to sales and achieved operational excellence that will fuel this growth in years to come,”, he added.

Commenting on the transaction, Jarosław Jurak, president and CEO of Danwood, said: „We strongly believe that under the new ownership Danwood has the potential to further strengthen its market position in Europe and reach for new markets outside the EU, becoming a global leader in the production of energy-efficient prefabricated houses.”

The Czech investment company Jet Investment has concluded a contract to sell its 100% stake in MSV Metal Studenka to MORAVIA STEEL. The steelmaking company is among the most important industrial groups and steel producers in Central Europe with substantial activities in the forging industry. The terms of the agreement are not being disclosed.

The agreement marks another successful divestment from the portfolio of Jet 1 fund after recent sales of LESS & TIMBER and BENET AUTOMOTIVE.

“The selling of MSV Metal Studenka to a strategic partner is a successful outcome of our restructuring efforts that we have been making for the last seven years. In the course of our management, the insolvent company has become a clear market leader in the forgings and subassembly for railways in Europe. Since our entry, we have doubled the profits and revenues of the entire group,” says Marek Malík, Partner in Jet Investment. “We have accepted the offer from MORAVIA STEEL mainly because we believe that joining MSV Metal with a respected steel producer and a major player in the forging industry will enable this company to grow further.”

Jet Investment Project Director Jan Sklenar said: “We are handing over a platform in excellent condition, strengthened by investment and with a full order book for the next period.” The group consists of the Czech MSV Metal Studenka, a. s. as well as Polish Kuźnia Ostrów Wielkopolski Sp. z o.o. In addition to the current organic growth, it was the purchase of a Polish competitor in 2017 that brought a significant positive development of economic indicators thanks to the synergies between the two companies. Besides, Jet Investment invested heavily in products and technologies during the holding of MSV Metal Studenka. Since 2013, the investments have amounted to EUR 15 million.

MSV Metal Studénka, the direct successor of Vagonka Studenka, is a comprehensive manufacturer of forgings and components for rail vehicles. It is one of the largest suppliers to the railway industry in Europe with a history dating back to 1900. Significant customers include all renowned European state railways such as DEUTSCHE BAHN AG, ÖBB, SNCF, SNCB, CD, RENFE, and some non-European railways such as TCDD, ONCF, SNTF, and more. MSV Metal Studenka also supplies its components to all major European freight wagon manufacturers.

Together with dozens of subsidiaries, MORAVIA STEEL is an important industrial group in Central Europe and the most significant Czech steelworks with domestic capital. It exports its products to more than 60 countries on all continents.

PwC Czech Republic provided advisory services to the seller in this transaction; legal services were provided by DRV Legal.

Mid Europa Partners (“Mid Europa”), the leading private equity investor in Central and Eastern Europe, announced today the agreement to sell Walmark a.s. (“Walmark” or the “Company”) to STADA Arzneimittel AG (“STADA”). The transaction is subject to customary anti-trust clearance and is expected to close in Q1 2020.

With a unique portfolio of iconic brands and direct presence across nine European Union countries, Walmark is the leading consumer healthcare company in Central and Eastern Europe.

Matthew Strassberg, Co-Managing Partner of Mid Europa commented: “The acquisition by STADA validates Walmark’s transformation from a family-led business to an international platform. Working in partnership with new management team, we have achieved our original vision for the Company and created a valuable strategic asset by developing and implementing a thorough approach to operational excellence and focused product innovation. We would like to thank Walmark management and employees for their dedication and contribution over the past several years. We are confident that with the benefit of the resources of STADA, a global healthcare company with a 120-year history, Walmark will continue in its track record of success in our region and beyond”.

Miro Slezak, CEO of Walmark, commented: “This transaction recognizes the value of Walmark’s unique brands as well as strong organization attracting some of the best talent across our markets. We are very pleased to be joining STADA, as we share a common purpose of supporting our customers to live healthier lives and we are excited for the new opportunities for our employees as part of a larger company. We are grateful for Mid Europa’s support and strong commitment to the Company’s long-term strategy throughout their investment”.

Viktoria Habanova, Principal of Mid Europa who covers the Czech and Slovak markets said: “Mid Europa’s investment in Walmark as well as other successful partnerships with market-leading management teams and entrepreneurs in the Czech Republic and Slovakia, such as Karneval, CRa, and Alpha Medical, illustrate our on-going commitment to these markets where we have invested over €1 billion over the past 15 years”.

The transaction execution was led by Viktoria Habanova with the support of Tomas Vrba and Rustam Kurmakaev.

Rothschild & Co acted as exclusive financial adviser to Mid Europa, Weil Gotshal & Manges with the support of White & Case and AK Jan Evan as its legal counsel, PwC as transaction services adviser, and Boston Consulting Group as its commercial adviser.

Source: MID EUROPA

Polish Enterprise Fund VII (PEF VII), a private equity fund managed by Enterprise Investors (EI), announced today that it has signed an agreement to sell 3S, a provider of fiber-optic and data center services for B2B clients, to P4, one of the leading telecom operators in Poland.

• The enterprise value of the transaction is EUR 96 million;
• The transaction is conditional upon obtaining antimonopoly approval.

3S is the owner and operator of a 3,800km-long, best-in-class fiber-optic network connected with a geographically diversified Tier 3 data center cluster. The company operates in a rapidly growing market segment, offering tailor-made telecommunication solutions that include internally developed cloud services to more than 2,800 B2B clients in Poland. It employs over 250 people. In 2015, EI acquired a 76% stake in the company for EUR 21 million. In 2018, 3S generated EUR 20 million in revenues.

“3S is ideally positioned to benefit from the growing demand for data services and the need for high-speed networks in Poland’s metropolitan areas. The company has a strong track record of servicing B2B clients, and its experienced management team is well equipped to drive the company’s growth under the new ownership. I am convinced that 3S will make a fine addition to P4’s offering”, said Rafał Bator, partner at Enterprise Investors responsible for the investment.

Source: Genesis Capital