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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.