Market

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.”