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Versute Investments and BHS PE Fund acquired Altran CZ

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/

Jet Investment acquires LIKOV

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.

 

Genesis Capital has acquired a majority stake in AV MEDIA

Since its foundation in 1992, AV MEDIA has built a leading position in the field of audiovisual technology in the Czech Republic and neighbouring countries. Its business consists of two main pillars: AV MEDIA SYSTEMS, which provides the design and integration of complete audiovisual solutions for customers in the education, public administration, cultural and commercial sectors, and AV MEDIA EVENTS, providing complete technology solutions for promoters of conferences, exhibitions, social, cultural and sporting events. Through Brill AV Media, the group has been also successfully developing business activities in Poland. Genesis Private Equity Fund IV, a private equity fund from the Genesis Capital group, will acquire a majority stake in AV MEDIA, while two of the three founders will retain a stake. Also, the key managers of the group will newly become shareholders. The joint intention is to accelerate the growth of the group, either through expansion of the product portfolio or through selected acquisitions in the region. Completion of the transaction is subject to approval by the Czech Antimonopoly Authority and is expected in November 2023.

“We are delighted to join forces with an experienced management team that has managed to build a strong position for AV MEDIA in the Central European region and has a clear vision of where the group should grow. The audiovisual market is indeed benefiting from the wave of digitalization and the growing need for effective communication with the help of diverse technological solutions. This favours specialists such as AV MEDIA, who can find suitable solutions and integrate new technologies with existing ones where appropriate. We believe that in combination with our M&A experience, we will be able to accelerate the growth trajectory together.”, comments Jiří Kolísko, Senior Investment Manager at Genesis Capital Equity.

David Lesch, one of the founders and CEO of AV MEDIA SYSTEMS, said: “In Genesis Capital we have found a strong partner who shares our vision and is able to provide the capital to support our ambitious future plans. The Group’s 30-year history is associated with continuous development and we have also made several successful acquisitions. With the professional support of Genesis Capital, we believe in strengthening of our activities throughout the Central European region. At the same time, I am pleased that continuity in the management team will be assured, and the involvement of key managers will be supported by their equity participation. I am confident that we will seamlessly build on our efforts and results to date.”

Jan Kubinec, CEO of AV MEDIA EVENTS, said: “In order to remain competitive in the rapidly developing European market and to be able to face the challenges coming from abroad, we need to maintain the high quality and flexibility of our services. We see the entry of Genesis Capital not only as an opportunity to leverage our strengths, but I also believe we will create a major regional group, delivering superior services to international blue-chip customers. This will allow us to continue our activities supporting the Czech market and at the same time strengthen our position in the international competition.”

“In the opportunity to invest into the AV MEDIA Group, we have found a clear intersection with the strategy of GPEF IV. Key elements include the fact that the group is a leader in its field and has regional ambitions. It is also the case that the entry of GPEF IV naturally addresses the issue of succession in the company and creates new opportunities for the existing management team. The partnership with the management team and the common goal are key for us”, added Pavel Kvíčala, Legal Partner at Genesis Capital Equity.

Genesis Capital invests in PFX

Based in Prague, PFX is a trusted and innovative provider of creative solutions for various media platforms. With an international team of 160 experienced professionals and four modern offices, PFX is one of the leading companies offering visual effects, animation, advertising campaigns and post-production services. Genesis Private Equity Fund IV, the private equity fund of Genesis Capital, has partnered with the founders to acquire a significant stake in the company. Both parties are committed to pushing the boundaries of creativity and innovation in the dynamic world of media and entertainment, and to developing new opportunities for clients seeking quality creative solutions. The common goal is to create a leading player in Central and Eastern Europe via a combination of organic and M&A growth.

“The investment in PFX is the culmination of our efforts to date to find the ideal platform for GPEF IV to enter this dynamic industry. PFX has demonstrated its exceptional quality and sustainable organic growth in recent years. In addition, we have found highly experienced and passionate growth partners in the founders of the company who fit perfectly with Genesis Capital’s investment strategy. Together, we have agreed to accelerate the company’s growth through a capital injection that will support its continued growth both organically and through strategic acquisitions. The global and European scene is extremely active in this sector, and we are proud to be able to actively participate in this development,” comments Martin Viliš, Partner at Genesis Capital Equity.

Jiří Mika, CEO of PFX, said, “The partnership with GPEF IV represents a significant milestone in our journey. It will allow us to expand our production capacity, invest in cutting-edge technology and continue to deliver exceptional creative services to our clients. We look forward to the exciting opportunities that lie ahead.”

“We are excited to partner with PFX and combine the background of a strong financial group and our expertise with their creative capabilities. Together, we aim to accelerate growth and innovation in the media and entertainment industry in Central and Eastern Europe and deliver unrivalled creative solutions to clients. This investment underscores our commitment to support companies with high growth potential and to create value for our investors,” added Jiří Kolísko, Senior Investment Manager at Genesis Capital Equity.

Enterprise Investors will invest in Advanced Protection Systems

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.

Invest Europe opens its ESG Reporting Guidelines

  • Invest Europe makes publicly available its ESG Reporting Guidelines and revised template
  • European Investment Fund, AP2, France Invest endorse guidance

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, is making its ESG Reporting Guidelines available to the entire private equity and venture capital community – previously only available to members – giving all firms best practice guidelines for reporting ESG aspects and metrics, policies and practices, enabling long-term investors to access sustainability information on their investments.

  • Invest Europe’s ESG Reporting Guidelines comprise a revised template for reporting to limited partners, including a list of recommended ESG metrics in line with regulatory requirements, voluntary initiatives, and investors’ needs. The Guidelines include direction for firms on integrating ESG into reporting processes throughout the investment lifecycle, and information on developing an ESG policy and assessing materiality. They also contain an extensive mapping of the pan-European regulatory environment, as well as existing standards and frameworks.
  • The Guidelines have already received broad industry recognition, with endorsement by the EIF, AP2 and France Invest. A range of general partners have already started using the template as their preferred format for sustainability reporting.

Invest Europe created the ESG Reporting Guidelines in 2022 with the support of more than 50 industry and ESG experts from Europe and beyond, initially making the template and guidance available to Invest Europe members to gather experiences and feedback. The aim of extending the Guidelines and template to the entire industry is to strengthen and accelerate momentum towards codification and harmonisation of ESG reporting, making the process easier for GPs, and the data more comparable and scalable for LPs.

The broad availability of the industry-leading Guidelines comes as the climate crisis reaches unprecedented levels, leaving no sector of activity unaffected and increasing pressure on businesses to step up efforts to tackle carbon emissions. Other topics, such as the participation of women in key roles and diversity in the workforce, are also generating attention from long-term investors and the public at large, driving greater action by private equity and venture capital firms.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “ESG and the climate crisis are among the biggest and most complex issues facing the industry today. Our ESG Reporting Guidelines provide much-needed clarity and practical guidance on incorporating and reporting on essential ESG topics. By extending availability of the Guidelines, we aim to increase harmonisation across the industry and create a new benchmark for ESG reporting, helping the industry to participate fully in the drive to a more sustainable future.”

When reporting according to recommended metrics, fund managers can leverage Invest Europe’s logo to signal that reporting is in line with industry norms. The revised ESG reporting template also includes additional metrics for those firms that wish to go further in their reporting to satisfy voluntary standards, investor demands, or to expand ESG data coverage.

Leading institutions, investors, fund managers, national associations and ESG solutions providers have given their support to the new Guidelines, paving the way for widespread adoption across the industry.

Marjut Falkstedt, Chief Executive Officer, European Investment Fund, commented:

  • “Tracking the performance of our investments is important for us. At the EIF, we want to contribute to the overall efforts of generating understandable and comparable metrics, so that ESG considerations can be leveraged towards achieving the policy goals of a more sustainable and inclusive Europe. We’re pleased about Invest Europe’s initiative for this ESG reporting template, helping to pave the way for a harmonised approach across the European venture capital and private equity industry.”

Anders Strömblad, Head of Alternative Investments, Andra AP-fonden/AP2, added:

  • “This guidance and the reporting template constitute a big leap forward for the entire private equity industry. Consolidation and harmonisation of reporting on ESG will save time and resources and – more importantly – facilitate data-driven ESG decisions for both GPs and LPs. By also securing coherence with international initiatives, the Invest Europe guidance and template also forms the most solid steppingstone for global consistency in ESG reporting.”    

Alexis Dupont, Managing Director, France Invest, said:

  • “Embracing sustainable investment and addressing climate change informed France Invest’s national pioneering work on ESG reporting harmonisation. A common approach at the EU-level is required, with Invest Europe’s ESG Reporting Guidelines now setting a new global ‘gold standard’ for ESG reporting to investors. France Invest is delighted to support the initiative, and promote these Invest Europe guidelines in France.”

The ESG Reporting Guidelines are part of an extensive library of ESG and sustainable investing resources created by Invest Europe to help managers and investors to understand and navigate this crucial topic. They include our Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies, our Climate Change Guide, and the ESG KPI Report which tracks industry efforts across a range of ESG topics.

Enterprise Investors will invest in Goodspeed

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.”

Invitation to Aon’s IP Insurance Webinar for Czech&Slovakian Corporates

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, 17th 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)

 

Enterprise Investors sells its stake in Unilink

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 appoints BNP Paribas to explore strategic options

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.