Market

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.