European Investments & Partners (EIP)

European Investments & Partners was central Europe’s first financial advisory firm focused on the environmental and clean energy sectors.  Founded in 1998, EIP has been advising the pioneering investment fund, Environmental Investment Partners I, II and III, on its investments in the region.  EIP has advised on 20 investments in early stage companies in the “green” sectors with total capital deployed in excess of $50 mm.  Of the 20 investees: 6 have been listed on stock exchanges, 4 have been sold in trade sales, 3 remain private, 3 have undergone restructuring and 4 are still in their early growth phase.  EIP has advised many companies regarding their IPO’s, mergers and acquisitions and project financings.  These transactions have in aggregate totalled over $1000 mm.  Among these transactions were financings for wind and PV parks, waste water companies, district heating and biogas IPOs.  EIP is currently very active assisting renewable energy firms with capital raising, project financings and sales of existing assets.  EIP welcomes your contact

Adam de Sola Pool
+48 664 732 000 gsm
+48 22 756 3232 office
pool@eip.com.pl

Krzysztof Młynarz
+ 48 510 029 480 gsm
+ 48 22 756 3232 biuro
km@eip.com.pl

 

 

Venture capital firm Enterprise Investors boosts EP Serwis stake to 49%

Enterprise Investors has invested a further €2.2m in Polish wooden pallet specialist EP Serwis to boost its exposure to a fledgling market it expects significant growth from in coming years.

EP said it would use the new funding to develop its pallet pooling services and strengthen its position in the market.

The company is also involved in trading, exchange, logistics, and repair and recycling of used pallets.

Enterprise will hold a 49 per cent stake in the company following the purchase, which it made through its Venture Fund I.

EP, which currently has annual revenues of nearly €10m, sees a significant potential for growth as pallet pooling is just starting to develop in Poland, while in the US and Western Europe more than 50 per cent of pellets are pooled.

Enterprise partner Rafał Bator, said, “All the measures taken by the company in the last few years… have turned EP Serwis into the market leader on Poland’s open pallet pooling market.

“The Polish market of EPAL-standard pallet rental services is in its infancy and our due diligence has shown that EP Serwis is best positioned to capture this emerging segment.”

Enterprise Investors currently manages funds with capital exceeding €2bn. These funds have invested €1.6bn in 129 companies across a range of sectors and exited 96 companies with total proceeds of €1.8bn.

Enterprise Venture Fund I was raised in 2008 with a total capital of €100m. It usually invests between €1m and €5m per company, and has so far realised twelve investments in Poland and Central and Eastern Europe.

Barnes & Noble chairman offers to buy struggling bookseller – can it be saved?

CEO Leonard Riggio intends to make an offer for Barnes & Noble Booksellers, barnesandnoble.com and other retail assets. Photograph: Spencer Platt/Getty Images

Barnes & Noble was once the Goliath of the book-selling business. Now, next to Apple and Amazon, its falling sales and plan to close 20 stores a year makes it look more like a struggling David armed only with a slingshot.
Barnes & Noble's weakening financial position makes the company vulnerable to takeover offers, and it received one on Monday. Barnes & Noble said in a regulatory filing that its founder and chairman, Leonard Riggio, proposed buying the company's bookstore business and its barnesandnoble.com domain. Riggio will not make an offer for the Nook e-reader business, according to the company. He already owns 29.8% of the company.
It is not yet known how much Riggio plans to offer, or whether he has arranged the cash and bonds to pay for it. The company indicated in a filing that the deal is subject to negotiation of Riggio's specific financial terms, including terms of whatever financing he can gather.
Riggio could well end up with a bargain. The bookstore business of Barnes & Noble could be worth only about $484.5m, according to estimates by Stifel Nicolaus analyst David Schick based on the company's sales over the past 12 months.
Schick previously noted that the Nook business – which accounts for 8.5% of Barnes & Noble's total revenue – is worth about $1.79bn. Barnes & Noble controls about one-third of the market in US ebooks, according to the company's estimates.
Barnes & Noble stock is currently trading at around $14.78 a share, giving the company a market value of $867.4m. Stock prices are only one measure of a company's value, however – alongside sales and profits – and when when companies break up, their parts are sometimes worth more than the value of the whole. That is why many numbers are likely to circulate about Barnes & Noble's true value over the next few months.
Barnes & Noble has been struggling with a darkening financial picture. Its bookstore sales fell 10.9% compared to January 2012, while Nook sales declined 12.6% in that time.
Over the past year, Barnes & Noble has sold off ownerships in its Nook e-reader business and announced a plan to shut down about 20 stores a year, leaving it with about 450 stores in the next decade.
The kind of deal Riggio is proposing for Barnes & Noble is known on Wall Street as a "management buyout", in which a current CEO or executive makes a deal with banks and private equity firms to take over his own company.
Last month, the CEO of computer-maker Dell, Michael Dell, offered $24bn for the company with the help of private equity firm Silver Lake. The deal quickly came under criticism from some big investors suggesting Dell's offer was too low, which illuminated why these types of deals can often be controversial. Shareholders who already own stock become suspicious that a CEO or chairman can cut a sweet deal for a struggling company.
Newcomb Stillwell, a partner with law firm Ropes & Gray who advises on MBOs, said that once the Riggio bid is on the table, it could invite other bidders if the price isn't high enough.
"It's universally the case that these transactions are structured in a way that other bidders have an opportunity to bid after the original deal is signed up," Stillwell said. "If the price is low, people will show up to pay a higher price."
It's not clear what other bidders would be interested in Barnes & Noble. Its biggest rival, Borders, liquidated in 2011.
"The economics are against the print book industry," said Roger Kay, the founder of Endpoint Technologies Associates. He recounted a visit to a Barnes & Noble recently. "I did note that the Nook area was not just abandoned, but you don't get the sense you do in Apple stores of people kicking the tires."
"Now we're all in our splendid isolation reading our Kindles," Kay said.
Barnes & Noble started signalling last year that it would spin off its Nook business. In January 2012, Barnes & Noble announced it would look for ways to "unlock the value" of the Nook, which competes with readers against Amazon's sweeping Kindle franchise and Apple's iTunes. Barnes & Noble has a fraction of their reach and resources; Apple has a market value of $421bn and Amazon is worth $120bn.
Kay said that even though the Nook business has not been a big winner for Barnes & Noble, it had to try to create a competitor to Apple and Amazon.
"I think it was inevitable," he said. "They had to make a go of it. They had to try to throw a grappling hook and climb on. If they just stuck with brick and mortar physical books, it would have just been slow strangulation."

Since making its announcement last year, Barnes & Noble has sold off portions of the Nook business to other companies. Last year, Microsoft invested $300m in the Nook business in April and owns a stake of 16.8%, and educational publisher Pearson poured in $89.5m for a 5% stake in December.
In a conference call with analysts in January, Barnes & Noble CEO William Lynch said the company would grow the Nook. "The Nook business will scale in 2013," he promised.

Average IRR

The arithmetic mean of the internal rates of return.

PGE i Energa kupią 75 proc. udziałów spółki Iberdroli zarządzającej OZE

Polska Grupa Energetyczna (PGE) oraz Energa Hydro Sp. z o.o. (spółka zależna Energi) podpisały z Iberdrola Renovables Energía umowę, na mocy której przejmą przejmą od hiszpańskiej firmy 75 proc. udziałów w spółce Iberdrola Renewables Polska Sp. z o.o., zarządzającej portfelem farm wiatrowych w Polsce, podała PGE w komunikacie. Wartość transakcji wyniesie ok. 840 mln zł. 

"Intencją PGE oraz Energa jest objęcie dodatkowego pakietu 25% udziałów w Iberdrola Renewables Polska Sp. z o.o., będących w posiadaniu Europejskiego Banku Odbudowy i Rozwoju (EBOR)" - głosi komunikat.

Na podstawie umowy PGE nabędzie operujące farmy wiatrowe o łącznej zainstalowanej mocy 70,5 MW, z zabezpieczonymi kontraktowo odbiorem energii i certyfikatów, oraz pakiet projektów o planowanej mocy 36 MW będących w zaawansowanym stadium rozwoju. Energa zaś nabędzie farmy wiatrowe o łącznej zainstalowanej mocy 114 MW oraz portfel projektów wiatrowych o łącznej planowanej mocy 1 146 MW, podano także.

"Wartość transakcji obejmującej nabycie 75% udziałów w Iberdrola Renewables Polska Sp. z o.o. wyniesie około 840 mln zł., co przekłada się na wartość transakcji na poziomie ok. 1,1 mld zł za 100% udziałów" - czytamy dalej w komunikacie.

PGE podkreśla, że transakcja przejęcia farm wiatrowych od Iberdrola jest kolejnym, po przejęciu farm wiatrowych od DONG Energy A/S, krokiem w realizacji strategii rozwoju Grupy Kapitałowej PGE w energetyce wiatrowej na lądzie.

Z kolei Energa podała w swoim komunikacie, że moc zainstalowana w OZE grupy wzrośnie w wyniku tej transakcji z 343 MW do ponad 500 MW, a produkcja -  z 1,3 TWh do 1,8 TWh.

"Przewiduje się, że finalizacja transakcji nastąpi w ciągu najbliższych miesięcy 2013 roku. Transakcja wymaga zgody Urzędu Ochrony Konkurencji i Konsumentów na koncentrację" - podano także w komunikacie PGE.

Grupa Energa zajmuje się głównie wytwarzaniem, obrotem i dystrybucją energii elektrycznej i cieplnej. Dostarcza energię elektryczną dla 2,5 mln gospodarstw domowych oraz do ponad 300 tys. firm, co daje jej około 17-procentowy udział w rynku sprzedaży energii elektrycznej. Jest operatorem systemu dystrybucyjnego energii elektrycznej na obszarze ¼ powierzchni Polski. Eksploatuje około 190 tys. km linii elektrycznych, którymi przesyła ponad 24 TWh energii rocznie.

PGE to największa grupa energetyczna w Polsce. Udział Grupy Kapitałowej PGE w produkcji energii elektrycznej w Polsce wynosi ok. 40%, natomiast w rynku dystrybucji energii elektrycznej ok. 26%.

Deutsche Telekom nie wyklucza przejęć w Polsce

Na trwających w Barcelonie targach telekomunikacyjnych Deutsche Telekom wskazał na Polskę jako jeden z kluczowych rynków.

Najpierw ogłosił, że będziemy pierwszym krajem w Europie, w którym klienci będą mogli kupić smartfon Alcatela z najnowszym systemem operacyjnym Mozilla Firefox OS. Wczoraj – że w tym roku uruchomi w Krakowie drugi na świecie po Berlinie inkubator dla internetowych start-upów. Mają tworzyć aplikacje z nowymi usługami dla klientów DT. – Interesują nas takie obszary, jak mobilne płatności, media, rozrywka, analiza zbiorów danych, ale także inteligentne domy i e-zdrowie – powiedział DGP Thomas Kiessling, członek zarządu Deutsche Telekom odpowiedzialny za produkty i innowacje. Najciekawsze pomysły dofinansuje kwotą do 30 tys. euro przez pół roku. W tym roku ma być ich pięć.

Te ruchy to efekt wprowadzenia w Polsce w ub.r. pilotażowo mobilnych płatności NFC wraz z usługą Mobile Wallet, którą DT traktuje jako strategiczną. – Dotychczas skorzystało z niej 5 tys. klientów, a w tym roku liczba ta ma wzrosnąć do 50 tys. – dodał Thomas Kiessling. I zapowiedział, że teraz usługa ruszy w 5 kolejnych krajach w Europie.

Operator podkreślił, że jego strategia zakłada wprowadzanie usług mobilnego internetu LTE i łączenie ich z dostępem stacjonarnym tam, gdzie jest to możliwe. W Polsce T-Mobile wygrał właśnie aukcję na częstotliwości LTE, ale nie ma sieci stacjonarnej. Czy będzie szukał okazji do przejęć, biorąc pod uwagę, że na sprzedaż szykuje się Netia? – Nie komentujemy konkretnych przypadków. W Polsce, gdzie chcemy być liderem, mamy strategię rozwoju organicznego. Ale nie oznacza to, że wykluczamy inne możliwości – powiedziała pytana przez DGP Claudia Nemat, członek zarządu DT odpowiedzialna za Europę i technologię.

PKP Cargo może przejąć słowackiego przewoźnika

– PKP Cargo bacznie przygląda się potencjalnym procesom prywatyzacyjnym za granicą, w szczególności na południe od Polski – zdradza DGP Jakub Karnowski, prezes PKP.

Jak ustaliliśmy, na celowniku przewoźnika jest spółka ZSSK Cargo, dla której inwestora strategicznego poszukuje rząd w Bratysławie.

Już dziś PKP Cargo wozi towary przez Słowację. W wypowiedziach z ostatnich dni dla dziennika „Hospodarske Nowiny” przedstawiciele polskiej spółki nie ukrywali zainteresowania przejęciem udziałów słowackiego operatora kolejowego. – Słowacki rynek jest jednym z najbardziej atrakcyjnych dla PKP Cargo w Europie Środkowo-Wschodniej z racji wolumenu towarów transportowanych koleją oraz sąsiedztwa geograficznego, które pozwala na osiągnięcie efektów synergii – potwierdza rzecznik PKP Cargo Mariusz Przybylski.

Sytuacja ZSSK Cargo nie jest jednak łatwa. Jak wynika z ostatniego dostępnego raportu rocznego, w latach 2010–2011 spółka miała w sumie 123 mln euro straty netto. Na dodatek rezygnacją z jej usług grozi jej największy klient – koncern US Steel. Plan restrukturyzacji ZSSK Cargo zakłada sprzedaż 5 tys. z 13 tys. wagonów, a zwolnieniami zagrożonych jest 2,2 tys. z 9,5 tys. pracowników.

U naszych południowych sąsiadów dyskutowany jest równolegle pomysł połączenia narodowych przewoźników z Czech i Słowacji: CD Cargo i ZSSK Cargo. Na ZSSK Cargo ostrzą sobie też zęby przewoźnicy z Niemiec i Rosji.

PKP Cargo przewiózł w 2012 r. 116 mln ton ładunków. Posiada 2,5 tys. lokomotyw, 65 tys. wagonów i pozycję drugiego przewoźnika towarowego w Europie. W ub.r. spółka osiągnęła 340 mln zł zysku netto. Na przełomie 2013 i 2014 r. ma się odbyć jej debiut giełdowy. Ze sprzedaży 49 proc. akcji spółki PKP chcą uzyskać 1,5 mld zł.

Poland: Nuclear Power Plant Project Wobbles

Poland´s Treasury Minister Mikolaj Budzanowski explained that Poland cannot afford the nuclear power plant.

In order to reduce its dependence on Russia, Poland wants to build a nuclear power plant. The project has been discussed for years. However, due to the economic slowdown, Poland does not have sufficient resources to finance the project, Budzanowski said in an interview with “Parkiet”. As a result, the Polish government cannot support the nuclear power plant, he said. However, Poland will put more effort in the shale gas production, he said.

For Poland´s energy industry, Budzanowski´s announcement is rather surprising. Without public support, nuclear power plants will not be built, analysts say. According to observers, Poland does not want to overburden the state budget. Otherwise the euro adoption would be endangered.

CESEE Region Still Has Enormous Growth Potential

“CEE growth drivers intact but innovation is needed to start convergence 2.0” Erste Group says.

Since the fall of communism Central and Eastern Europe has become a textbook example of economic convergence through integration into the EU. However, the financial crisis has put a brake on this process. Erste Group’s special report “Convergence 2.0” published today finds that growth drivers are intact, but over the next decade CEE will have to move from a classical catching up by imitation to a knowledge-based system with more value added and more diversified exports. “Pure cost competitiveness is not enough when countries are approaching the technological frontier; CEE countries will need to increase productivity of capital and labour by their own means and this makes investments in education and R&D crucial,” explains Birgit Niessner, Chief Analyst of CEE Macro Research at Erste Group.

“Among our sample of CEE countries, the Czech Republic, Slovakia and Poland are the frontrunners in terms of competitiveness and knowledge, with Hungary falling behind this group of countries. Romania and Serbia are on their way, but can still exploit more efficiency reserves before becoming innovating economies. Croatia must become more competitive to preserve its relatively high income level, whereas Turkey still has to move towards a knowledge economy.” Erste Group says.

FDI stock stable at high level, exports still strong but CEE must go beyond the low cost play
CEE countries have used the re-integration of Europe to their own economic benefit and foreign investors have discovered the region as a place to invest in. The countries of the region have thus used their relative cost advantage to modernize their industry with foreign technologies. High stocks of FDI and a high share of exports to GDP are testimony to this and have survived the financial crisis well. The crisis year 2008 constituted a break in the accumulation of the FDI stock, but until 2011, the FDI stock stabilized in all countries. Hungary’s FDI stock has seen the most negative development: From a peak of 75% of GDP in 2009, it came down by more than 10 percentage points in only two years. Last but not least, another specialty of growth in CEE is excellence in exports. Looking at export’s share of GDP, differences within the CEE region become obvious: starting at already high levels, the CEE-3 countries were able to raise their share of exports in the crisis years. Poland, Croatia and Romania can be found in the middle range, which is partly due to the size of the markets (larger countries tend to export less), but also to non-competitive structures. However, their performance is still superior to the Southern European countries.

So the EU integration has been a success and a factor of paramount importance in the shaping of the economic catch up of the CEE region. The question now is how to reform the integration model of growth. “To use the terminology of the World Economic Forum (WEF) the challenge is to move from efficiency to innovation as drivers of competitiveness. The key to further catching up will be to replace the import of knowledge by innovative and new products generated in CEE countries. Competition, high-quality tertiary education and the availability of venture capital finance will gain in importance,” says Niessner.

The level of tertiary education in CEE is quite diverse, but for most of them it oscillates around 20% of for people aged 30 to 34 and is thus far from the EU target (40%) and the level needed for a labor force engaged in highly innovative sectors.

Poland: Economic Slowdown Becomes More Visible

Poland´s economic growth continues to decelerate. Domestic consumption and employment goes down.

In the last quarter of 2012, consumption was down by 0.9%. In the first quarter of 2013, the domestic consumption is expected to continue the downward trend. The average gross wages grew by 2.9% in the fourth quarter compared to the reference period of 2011. In 2012, the average wage increase came at 3.6%. In 2012, Poland´s inflation rate has reached 3.8%. As a result, real income was down slightly. Last year was the first since 1993 in which Poland has recorded a decrease in real income. According to the Polish National Bank (NBP), private consumption will remain rather weak this year. NBP explains that is due to the negative consumer confidence and the weak prospects for income recipients.

In January, Poland´s wages were up by 0.4%. This was reported by the Polish Central Statistical Office. Last month, the corporate employment came at 5.5 million. Compared to the reference period of 2012, this is a reduction of 0.8%.

KNF zgadza się na przejęcie banku Dexia przez GNB

Komisja Nadzoru Finansowego nie wyraziła sprzeciwu wobec planowanego zakupu przez Leszka Czarneckiego, za pośrednictwem Getin Noble Bank, akcji Dexia Kommunalkredit Bank Polska w liczbie powodującej przekroczenie 50 proc. głosów na WZ - poinformowała Komisja we wtorkowym komunikacie.

W listopadzie 2012 roku Getin Noble Bank informował, że przejmuje Dexia Kommunalkredit Bank Polska za około 57 mln zł. Zamknięcie transakcji planowane jest w 2013 roku.

Dexia Kommunalkredit Bank Polska jest instytucją finansową wyspecjalizowaną w obsłudze samorządów lokalnych, podmiotów zależnych od samorządów oraz projektów infrastrukturalnych.

Sfinalizowanie umowy uzależnione było m.in. od niewyrażenia sprzeciwu przez Komisję Nadzoru Finansowego i UOKiK.

Enterprise Investors ponownie wystawia Skarbiec TFI na sprzedaż

Warszawa, 20.02.2013 (ISBnews) - Enterprise Investors rozmawia z Abris Capital Partners o sprzedaży swojej firmy zarządzającej funduszami inwestycyjnymi – Skarbiec TFI, dowiedział się "Parkiet" z dwóch niezależnych źródeł związanych z rynkiem funduszy. Właścicielowi Skarbca przy transakcji doradza Dom Maklerski Trigon, który zaprosił do rozmów również innych graczy.

Enterprise Investors oficjalnie odmówił komentowania "rynkowych pogłosek". Źródła gazety zbliżone do Abrisa odmawiają nawet nieoficjalnego komentarza, podobnie jak Trigon.

"Trigon zaprosił różne firmy z branży funduszy do rozmów z Enterprise Investors na temat kupna Skarbca - potwierdził dziennikowi członek zarządu jednego TFI.

Według wiceprezesa innego TFI, rozmowy miałyby nawet być "zaawansowane". "To niemożliwe, biorąc pod uwagę, że Abris wciąż czeka na zielone światło od Komisji Nadzoru Finansowego w sprawie połączenia Investors TFI i BPH TFI. To potężne wyzwanie operacyjne, dlatego kolejna transakcja tego typu nie zostałaby przeprowadzona w ciągu najbliższych miesięcy" - powiedziała "Parkietowi" osoba związana z Investors TFI.

Abris w 2012 roku podpisał umowę zakupu BPH TFI. Wartość transakcji to 170,3 mln zł, podwyższone o nadwyżkę kapitałową BPH TFI w momencie zakończenia transakcji. Abris objął także większościowe udziały w Investors Holdingu, do którego należy Investors TFI.

Za BPH TFI Abris zapłacił ok. 5% wartości funduszy zarządzanych przez tę instytucję (ponad 3,1 mld zł w momencie przejęcia.

Gazeta podkreśla, że Enterprise Investors nosi się z zamiarem sprzedaży Skarbca już od paru lat. Przeszkodą w transakcji była do tej pory cena – dwa lata temu właściciel Skarbca chciał sprzedać swoje TFI za ok. 100 mln euro, co odpowiadało wówczas ok. 9% wartości funduszy zarządzanych przez Skarbiec. Teraz aktywa TFI to prawie 10 mld zł, co oznacza, że 100 mln euro odpowiadałoby 4–5% wartości zarządzanego kapitału.

Investors TFI i BPH TFI mają wspólnie ponad 5 mld zł aktywów. Jeżeli "pod skrzydłami" Abrisa znalazłby się Skarbiec, wartość wszystkich funduszy inwestycyjnych kontrolowanych przez fundusz private equity zapewniłaby mu nie tylko podium, ale i walkę o pozycję lidera w branży TFI. Największy gracz na rynku – PZU TFI – zarządza 15,5 mld zł.

Asset stripping

Dismantling an acquired business by selling off operational and/or financial assets.

Palama Investments: zgoda na koncentracje

Prezes UOKiK wyraziła zgodę na utworzenie przez spółki Alcatel – Lucent Polska i HAWE wspólnego przedsiębiorcy pod nazwą Palama Investments

Alcatel – Lucent Polska prowadzi na terenie Polski działalność w zakresie sprzedaży infrastruktury dla sieci i systemów telekomunikacyjnych oraz związanych z nią usług. Uczestniczy również w projektach związanych z modernizacją i rozwojem polskiej infrastruktury telekomunikacyjnej. HAWE zajmuje się zarządzaniem aktywami swoich spółek zależnych (tj. HAWE Telecom i HAWE Budownictwo) świadczących m.in. usługi telekomunikacyjne i projektowo-budowlane. W wyniku koncentracji Alcatel – Lucent Polska i HAWE powstanie nowy przedsiębiorca Palama Invetments, który będzie prowadził działalność w zakresie dostarczania sieci telekomunikacyjnej zaprojektowanej i zbudowanej w ramach projektu Internet dla Mazowsza.

Po przeprowadzeniu postępowania antymonopolowego Prezes Urzędu uznała, że koncentracja nie doprowadzi do istotnego ograniczenia konkurencji na rynku projektowania i budowy sieci telekomunikacyjnej oraz hurtowego dostępu do sieci szkieletowo-dystrybucyjnej.

Zgodnie z przepisami transakcja podlega zgłoszeniu do urzędu antymonopolowego, jeżeli biorą w niej udział przedsiębiorcy, których łączny obrót w roku poprzedzającym przekroczył 1 mld euro na świecie lub 50 mln euro w Polsce.

Asseco Poland Announced Plans to Buy ZETO Bydgoszcz

Asseco Poland has signed a letter of intent on Monday, for buying 100 percent of the shares of the IT company ZETO Bydgoszcz, Asseco said in a statement. The share capital of ZETO Bydgoszcz amount to PLN 87.7 million.

ZETO Bydgoszcz operates in the segment of IT services for the social security sector, public administration and industry. It focuses mainly on IT outsourcing services, development of own software, as well as delivery and integration of modern information technology. It also provides integrated ERP solutions for medium and small businesses.
Among the company's key customers, there are the Agricultural Social Insurance Fund (KRUS) and the Social Insurance Company (ZUS).

In 2011, the company generated revenues of PLN 35.5 million and PLN 9.4 million net profit. ZETO Bydgoszcz currently employs 127 people.

Asseco Poland´s share price rose 0.83 percent to PLN 46.38 by 9:17 local time.

TPSA mulls sale of web portal wp.pl - report

(Reuters) - TPSA , France Telecom's Polish unit, may decide to sell the country's No.2 web portal wp.pl in September, daily Puls Biznesu reported.
"There is an inclination to sell, but no formal decision has been made yet. It (the decision) is expected at the start of September," the daily quoted a source as saying.
Puls Biznesu also quoted TPSA spokesman Wojciech Jabczynski as saying: "No comment". (Reporting by Adrian Krajewsk; Editing by Dan Lalor)

Application form

The document by which investors apply to become limited partners and agree to be bound by the terms of the Limited Partnership Agreement (LPA)

Sony i Olympus - zgoda na koncentrację

Prezes UOKiK wyraziła zgodę na utworzenie przez spółki Sony Corporation oraz Olympus Corporation wspólnego przedsiębiorcy

Sony Corporation stoi na czele grupy kapitałowej, która działa mi.n. w branży produktów elektronicznych oraz usług finansowych. Olympus Corporation jest spółką dominującą grupy kapitałowej która zajmuje się produkcją i sprzedażą m.in.  aparatów fotograficznych, fotokopiarek i urządzeń medycznych.

Zgodnie z przepisami transakcja podlega zgłoszeniu do urzędu antymonopolowego, jeżeli biorą w niej udział przedsiębiorcy, których łączny obrót w roku poprzedzającym przekroczył 1 mld euro na świecie lub 50 mln euro w Polsce

W wyniku koncentracji Sony Corporation i Olympus Corporation utworzą wspólnego przedsiębiorcę, który zajmie się produkcją i sprzedażą sprzętu medycznego.

Po przeprowadzeniu postępowania antymonopolowego Prezes Urzędu uznała, że koncentracja nie doprowadzi do istotnego ograniczenia konkurencji.

Zgodnie z przepisami transakcja podlega zgłoszeniu do urzędu antymonopolowego, jeżeli biorą w niej udział przedsiębiorcy, których łączny obrót w roku poprzedzającym przekroczył 1 mld euro na świecie lub 50 mln euro w Polsce.

Decyzje wyrażające zgodę na dokonanie koncentracji wygasają, jeżeli połączenie nie zostanie dokonane w terminie 2 lat od ich wydania. Na stronie internetowej Urzędu zamieszczane są informacje na temat wszystkich prowadzonych przez Urząd postępowań antymonopolowych w sprawach koncentracji. Więcej informacji o zasadach łączenia przedsiębiorców w przygotowanym specjalnie opracowaniu.

Vodafone ‘eyeing Kabel Deutschland

Target: Kabel Deutschland Holding AG

Estimated value: USD 7,538 million

Rumour date: 13th February 2013

Target region: Germany

Target business: Cable network operator

 

Mobile phone company Vodafone is weighing a possible bid for German cable network operator Kabel Deutschland, in a deal that would strengthen the UK group’s European operations and protect its market share. German publication Manager Magazin first reported that Vodafone’s head of German operations has put forward the plan to senior management.

Comcast buying out GE to take full control of NBCUniversal

Target: NBCUniversal Media LLC

Value: USD 16,700 million

Announced date: 12th February 2013

Target region: US

Target business: Entertainment, news and information television broadcasting and production services

 

Cable television company Comcast has agreed to acquire General Electric’s 49 per cent stake in

New York-based NBCUniversal. The buyer will fund the deal with USD 11,400 million in cash, USD

4,000 million in senior unsecured notes to be issued to GE and USD 2,000 million in debt. As

part of the transaction, Comcast will also purchase the GE building at 30 Rockefeller Plaza, and

CNBC’s headquarters in Englewood Cliffs, New Jersey.

Poland: Foreign Trade Growth Slows Down

The negative balance on the current account amounted to EUR 1.2bn as compared with EUR 1.9bn in December 2011.

On 12 February, the National Bank of Poland released preliminary data on Poland's balance of payments in December 2012. According to the figures, goods exports were 0.2% down on the December 2011 level while imports had risen by 0.4%. The deficit on the trade account exceeded EUR 1.2bn.

Service earnings increased by 13.7% on the December 2011 figure, while payments grew by 13.5%. The surplus on the service account reached EUR 276m. The deficit on the income account had widened on the year ago and amounted to EUR 1.3bn. The resulting deficit on the current account stood at EUR 1.2bn, as against EUR 1.9bn in December 2011.

There was a decline in both foreign direct investment in Poland and Polish direct investment abroad. However, this was caused by one-off financial transactions by special-purpose entities and had no bearing on investors' real involvement.

Enterprise Investors

• Experienced professionals
  Enterprise Investors is the oldest and one of the largest firms managing private equity and venture capital funds in Poland and Central and Eastern Europe. The firm was established by John P. Birkelund and Robert G. Faris, who pioneered the private equity and venture capital industry in the US and are recognized authorities in the field. Building on their success in the US and Western Europe, these private equity experts introduced the best industry standards to the CEE market and became mentors to the EI investment team.
  Since 1990 we have managed the capital of major European and American financial institutions. Our objective is to invest the money entrusted to us in companies that demonstrate high growth potential, and then to work with the entrepreneurs and the managers to increase the value of those companies. Our ultimate aim is to return capital to the investors at attractive multiples.
  Since inception we have raised eight funds with combined capital of €2 billion. In this time we have invested €1.5 billion in close to 130 companies, and exited more than 90 investments with gross proceeds of €1.7 billion.
  Our experience and network of relationships in local markets count among our foremost strengths. These assets have earned us the respect of leading foreign investors, who regularly entrust us with ever larger funds.
  Enterprise Investors is an independent, private firm jointly owned by its partners. Our funds invest in companies from Poland and other countries of Central and Eastern Europe, across a wide range of industries. We are able to respond to the challenges of the local economies, regardless of which country we operate in.
  
  

  • Global players
    In keeping with global economic trends, we often take on major capital-intensive projects that span many countries, forming consortia with other investors if the scale of the project demands it. Thanks to the creation of our venture fund we have an offer for all dynamically growing firms, no matter their size and location.
    
    
  • Innovators
    Our record as private equity pioneers is impressive – we were the first in Poland to introduce management options. We were also the first financial investor to exit an investment through an initial public offering (IPO) on the Warsaw Stock Exchange and one of the first in Central and Eastern Europe to use bank leverage.
    Having supported the development of businesses in the region with our innovative transactions for more then 20 years, we now focus on buyouts, management buyouts and buyins, pre-IPOs and expansion financing.
    Enterprise Investors has taken close to 30 companies public on the stock exchanges of Warsaw and New York – more than any other private equity firm in the region. We actively encourage buyout and buyin transactions, and sponsor the MBI & MBO Club for executives from Central and Eastern Europe interested in pursuing such deals.
    
    

    • Effective investors
      Companies need to continuously invest and increase their value, because no business can afford to stand still. One of the best routes to achieving this is by partnering with a private equity firm. At Enterprise Investors we manage funds effectively, achieving an average money multiple of almost three times cost on all exited investments.
      Our investments range from €5 million to €100 million or more. We are open to taking minority or majority positions, up to 100% of the firm.
      

    
    

    • High achievers
      Most businesses mature in step with the economy. At Enterprise Investors we have the capital, experience and investment expertise to help your company develop faster than both the economy and the competition. We share your aim of meeting the challenges of the global economy and reaping both financial and market rewards.
      Having pioneered private equity in Poland, we have built up unparalleled experience that our business partners justifiably view as a mark of guarantee. Our firm’s reputation has been confirmed by a number of prestigious awards, including Best Private Equity Firm in Central and Eastern Europe.
      

       
       

    
    
    

  Strategy
  

  We invest predominantly in medium-sized privately owned firms, but our venture capital fund provides equity to smaller firms, too. Our period of involvement is usually between three and seven years. After the acquisition we focus on the company's long-term growth, providing additional financing where necessary and systematically reinvesting profits.
  We play an active role in the development of our portfolio companies through supervisory board representation, without becoming involved in their day-to-day operations. Firms we work with can count on our full support when making key decisions regarding strategy, operational matters and financial planning. We assist them with recruitment for senior positions, to ensure management is of the highest caliber. We also help them with mergers and acquisitions, and prepare companies for public market entry.
  Our extensive network of relationships means we are able to provide introductions to the best legal advisors and accountants, as and when required. We also offer access to our more than 100 past and present portfolio companies and their customers.
  
  

  History

  • 1990 – Polish-American Enterprise Fund

    EI's investment activities began with the establishment of the $240 million Polish-American Enterprise Fund in 1990. PAEF was funded by the US government to support the Polish private sector through direct equity investments and loans, primarily to small and medium-sized Polish businesses.
    

  • 1992 – Polish Private Equity Funds I & II

    The initial success of PAEF led to the establishment of Polish Private Equity Funds I & II in 1992, with a $50 million investment by PAEF and an additional $101 million of capital provided by leading institutional investors from around the world. All of PPEF I & II’s capital was invested in Poland.
    

  • 1997 – Polish Enterprise Fund

    The next private fund – Polish Enterprise Fund – was established in 1997 with $164 million of capital. PEF helped build the market position of a large number of leading Polish companies and floated many of them on the Warsaw Stock Exchange.
    

  • 2000 – Polish Enterprise Fund IV

    In 2000 Enterprise Investors closed its fourth fund, Polish Enterprise Fund IV, with a total of $217 million committed by the largest and most influential financial institutions from the US and Western Europe. The fund's capital was invested in the development of private businesses in Poland and other countries of Central and Eastern Europe.
    

  • 2004 – Polish Enterprise Fund V

    In 2004 Enterprise Investors closed Polish Enterprise Fund V at €300 million. Polish Enterprise Fund V included investors that were new to the region as well as others with experience from EI's previous funds. PEF V was particularly well received thanks to Poland's accession to the EU. In addition to realizing expansion financing transactions a large part of the fund’s capital was set aside for buyouts.
    

  • 2006 – Polish Enterprise Fund VI

    In 2006 Enterprise Investors closed Polish Enterprise Fund VI with capital of €658 million. European LPs accounted for 65% of the fund and US LPs committed 35%. The fund was used to pursue buyout transactions, including management buyouts, as well as expansion financing.
    

  • 2008 – Enterprise Venture Fund I

    In 2008 Enterprise Investors closed its first venture capital fund, Enterprise Venture Fund I. The total capital of the fund was €100 million. EVF’s investments range from €1 million to €5 million per project. The fund finances the expansion of small and medium-sized enterprises operating in the technology sector as well as in traditional sectors in Poland and other Central and Eastern European countries.
    

  • 2012 – Polish Enterprise Fund VII

    In 2012 Enterprise Investors raised Polish Enterprise Fund VII, with capital committed by our long term LPs from Western Europe and the US. The fund's purpose is to pursue buyout transactions, including management buyouts, as well as expansion financing.
    

  
  

  
  

  EI Partners

  Enterprise Investors has a team of more than 30 managing partners, partners, vice presidents, investment directors and analysts. Overall strategy and development goals are set by the firm’s Board of Directors. EI’s partners form the core of the investment team.
  

  Profiles of EI Partners:

  • Robert Faris – Chairman of the Board of Directors
    
    
    He co-founded the firm in 1990. Mr. Faris has worked in venture capital and private equity for more than 40 years, and was previously president of Alan Patricof Associates (now Apax), one of the largest private equity firms in the US and Western Europe. In 2011, Mr. Faris was awarded the Commander's Cross with Star of the Order of Merit for his contribution to the development of the Polish economy.
    
    
    
    
  • Jacek Siwicki – President
    
    
    Mr. Siwicki manages the firm’s operations and is responsible for implementing its strategy across the whole CEE region. He concentrates on the specialty retail, appliances and home finishing sectors. At EI he has led 20 direct investments, including those in W.Kruk, LPP and Zelmer. Mr. Siwicki previously worked in the IT industry and in consulting, and in 1991 served as Poland’s deputy minister of privatization.
    
    Sklepy Komfort, Zelmer
    
    
  • Robert Manz – Managing Partner
    
    Mr. Manz is responsible for our investments in the cable TV, telecom, pharmaceutical and FMCG sectors, and for the firm's strategy in Hungary and Slovakia. He has led 15 direct investments at EI, among others in Orange Slovakia, Nay and PharmaSwiss. Mr. Manz was the founding president of PSIK, the Polish Private Equity Association, and served as its president for five years during the first decade of PSIK's activities. He is also chairman of the Central and Eastern Europe Task Force of the European Private Equity and Venture Capital Association. Before joining EI he worked in the mergers and acquisitions division of Dillon Read & Co. in New York.
    
    Nay
    
  • Dariusz Prończuk – Managing Partner
    
    Mr. Prończuk specializes in the financial services, IT and construction materials sectors, and is responsible for our operations in the Czech Republic. He has completed 20 investments at EI, including those in Lukas, Comp Rzeszów (now Asseco), Magellan, Kruk and Skarbiec. Prior to joining EI, Mr. Prończuk worked in consulting and was vice president of the investment bank Hejka Michna.
    
    AVG Technologies, Kofola, Kruk, Magellan, Macon,
    Netrisk.hu, Skarbiec Asset Management Holding
    
    
  • Michał Rusiecki – Managing Partner
    
    
    
    Mr. Rusiecki is responsible for investments in the food retail, FMCG, healthcare, renewable energy and cleantech sectors. He oversees the firm’s activities in Slovenia and Croatia. Mr. Rusiecki has completed 15 transactions, including those in Polish Energy Partners, Harper Hygienics, DGS, Dino, Wento and UOS. Before moving into private equity, Mr. Rusiecki worked at the Polish Ministry of Privatization and at the University of Warsaw.
    
    Dino, Harper Hygienics, Wento, UOS
    
  • Rafał Bator – Partner
    
    
    
    Mr. Bator leads the venture capital team. He specializes in technology investments and his most important projects to date include AVG Technologies and the restructuring of AB and Teta. Before joining EI, he worked for Prokom Software Systems and Optimus, two of Poland's leading IT companies, as well as for Price Waterhouse.
    
    AVG Technologies, Siveco
    
    
  • Stanisław Knaflewski – Partner
    
    
    
    Mr. Knaflewski specializes in the pharmaceutical, construction materials and telecom sectors and coordinates the firm’s activities in Bulgaria. He led our investments in Bulgarian Telecom, Nomi and Nordglass. Before joining EI, he worked for The Boston Consulting Group in Paris and Warsaw, where he led projects in strategic consultancy and company restructuring.
    
    Nordglass
    
    
  • Sebastian Król – Partner
    
    
    Mr. Król concentrates on the financial services, food retail and construction services sectors. His most important investments at EI include those in Magellan, Skarbiec, Profi and X-Trade Brokers. Before joining EI, Mr. Król worked for Arthur Andersen and Hachette Distribution Services. He holds an ACCA qualification.
    
    Magellan, Novaturas, Profi, Skarbiec, X-Trade Brokers
    
  • Jacek Woźniak – Partner
    
    
    Mr. Woźniak manages the firm's investments in the FMCG, food processing and furniture sectors. His most important investments at EI include those in Sfinks, Agros Nova and Kofola. Prior to joining EI, Jacek Woźniak was a consultant at the Warsaw office of Arthur Andersen and an investment director at Trinity Management, a fund management company in the Polish Mass Privatization Program.
    
    Gamet, Kofola, UOS
    
  • Cristian Nacu – Partner
    
    
    Cristian Nacu is the head of EI's representative office in Romania. Mr. Nacu's most important projects to date include our investments in Macon, Siveco and Profi. Previously, he worked for International Finance Corporation, the investment arm of the World Bank. He also worked for the Romanian government, managing one of the largest privatization portfolios and completing 25 privatizations. Cristian Nacu is president of South Eastern Europe's Private Equity Association (SEEPEA).
    
    Macon, Profi
    
    
    

    Investment targets

    Enterprise Investors is a tested partner when it comes to growing businesses. We cooperate effectively with both mature and smaller companies as we provide two distinct financing strategies – buyout and expansion capital.
    The companies we invest in most readily are well-developed, profitable businesses with good cash flows. They have a strong competitive position thanks to their geographical location, patents and cost-effectiveness. For us as investors, what matters is that a company can demonstrate recent above-average growth in value that is forecast to continue after the investment. We also look for firms that have the potential to improve their financial results through planned restructuring. Critical, too, are the skills and competence of the existing managers, or their plans for strengthening the team with outstanding individuals.
    We encourage you to partner with us.
    

     

     

     

     

    Our funds

    
    Enterprise Investors is a pioneer of the private equity industry in Poland and CEE. Over two decades we have raised seven private equity funds with a combined capital of €1.9 billion.
    The first three funds – the Polish-American Enterprise Fund, Polish Private Equity Funds I&II, the Polish Enterprise Fund – have been fully invested and realized, with substantial profits returned to investors in these funds.
    We have also fully invested the capital of the other three funds – Polish Enterprise Fund IV, Polish Enterprise Fund V and Polish Enterprise Fund VI – and have already exited many of the investments, achieving attractive returns.
    Enterprise Investors has now started to look for deals for our seventh fund, Polish Enterprise Fund VII. We invite you to partner with us.
    

     

     

    Polish Enterprise Fund VII

    Since 2012 EI has been investing the capital of Polish Enterprise Fund VII. This fund actively seeks mid-market buyout projects in attractive sectors in Central and Eastern Europe.
    Entrepreneurs decide to partner with our fund when selling part of their company, or when taking it to the next level of development. The fund is keen to work with individuals who want to run their company and retain a controlling stake but need capital to expand, to open new outlets, build factories abroad, or take over competitors. We are also interested in partnering with entrepreneurs who have been active for a long time and want to diversify their assets by selling a majority stake, while retaining involvement in their business at board level.
    In most cases PEF VII invests at least €30-€60 million in return for a majority stake or 100% of the company.
    

     

     

     

    Investments

    • 

      AVG Technologies

      Global provider of anti-virus software. Its programs currently protect more than 100 million computers worldwide. In 2005 our fund acquired 34% of the company's shares in a buyout transaction. Following a public offering on the New York Stock Exchange in 2012, we control 27% of AVG's capital.
      
    • 

      Center for Cancer Diagnostics and Therapy

      Radiotherapy clinic in Silesia, southern Poland. Our fund bought 100% of the business in 2012 from Voxel, a WSE-listed company, to finance its development.
      
    • 

      Dino

      Polish chain of supermarkets expanding dynamically in the western part of the country. In 2010 our fund acquired 49% of shares in Dino to support the rapid growth of the chain.
      
    • 

      Gamet

      Poland's largest manufacturer of decorative furniture accessories. In 2005 our fund acquired 100% of Gamet in an MBI.
      
    • 

      Harper Hygienics

      Polish manufacturer of skincare-related cotton products sold under the Cleanic brand. Our fund has been investing in the company since 2004 and now owns a 60% stake. Harper Hygienics has been listed on the Warsaw Stock Exchange since 2010.
      
    • 

      Kofola

      The company was formed through a merger of Kofola and Hoop, becoming one of the most significant producers of non-alcoholic beverages in Central and Eastern Europe. Kofola manufactures its products in factories located in Poland, the Czech Republic and Slovakia. Our fund acquired a stake in Kofola in a public tender offer on the WSE in 2008. We now control 43% of the company.
      
    • 

      Kruk

      Poland's number one receivables management company and the market leader in Romania. Our fund acquired a stake in the business in 2003 in a combined buyout and capital increase. In 2011 Kruk debuted on the Warsaw Stock Exchange. We control 25% of the company following the IPO.
      
    • 

      Macon

      Leading construction materials producer in Romania. Our funds bought out Macon in 2006. In 2008 we provided equity financing that enabled the company to acquire a majority stake in Simcor Group and thereby strengthen its leading market position.
      
    • 

      Magellan

      Non-banking financial institution specialized in servicing the healthcare sector, present in Poland, the Czech Republic and Slovakia. Our fund completed a capital increase in 2003 that helped the company broaden its product offer and continue its market expansion. In 2007 the company debuted on the Warsaw Stock Exchange. EI continues to control 68% of Magellan following the IPO.
      
    • 

      Nay

      Nay operates Slovakia's largest network of stores selling white and brown goods. In 2005 our fund acquired a 48% stake in Nay from its founders.
      
    • 

      Netrisk.hu

      The largest online insurance broker in Hungary, active also in Romania. In 2010 our fund acquired an 80% stake in Netrisk.hu.
      
    • 

      NordGlass

      One of Europe's leading manufacturers of automotive windshields and the largest distributor in Poland. In 2007 our fund bought out 100% of the company in a leveraged buyout. We structured the transaction as an MBI, retaining and strengthening the existing management team.
      
    • 

      Novaturas

      The largest tour operator in the Baltic States. Our fund invested in Novaturas in 2007. We became the company's majority shareholder with a 71% stake following a debt- and equity-financed transaction.
      
    • 

      Profi

      One of the largest supermarket chains in Romania. Our private equity fund acquired the entire share capital of Profi Rom Food Group in an MBI deal in 2009.
      
    • 

      Scitec Holding

      Leading international producer and distributor of sports nutrition products known primarily under the Scitec Nutrition brand. Our fund acquired a significant majority stake in Scitec in 2012 in a buyout transaction.
      
    • 

      Siveco

      Romania's largest software developer providing enterprise resource planning (ERP) solutions for companies, and software for public and local administrations. Our fund acquired Siveco's shares in 2005 in a combined capital increase and buyout transaction. Enterprise Investors owns 23% of Siveco.
      
    • 

      Skarbiec Asset Management Holding

      The holding comprises a mutual fund manager and a transfer agent, and is one of Poland's largest financial institutions. In 2006 our fund bought out 100% of Skarbiec.
      
    • 

      Sklepy Komfort

      Poland's largest floor covering store network operating 120 stores in the country. Our funds purchased 100% of the Komfort retail chain in 2007 in a leveraged buyout.
      
    • 

      United Oilfield Services

      Polish company providing seismic, drilling and well completion services to companies involved in oil and gas exploration and production in the country. In particular, UOS provides its customers with technologies and expertise needed to unlock Poland's shale gas reserves. Our fund provided equity financing for a minority interest in the company in 2012.
      
    • 

      Wento

      The company handles the construction of wind farms in Poland. Our private equity fund set up the company in 2012. Wento is 100% owned by the fund.
      
    • 

      X-Trade Brokers

      The largest brokerage house focused on forex, commodities, indices and CFD products in Central and Eastern Europe. In 2011 our fund acquired a significant minority stake in the company, which is expanding globally.
      
    • 

      Zelmer

      The largest Polish manufacturer of small home appliances. Our fund acquired 49% of Zelmer in an IPO on the Warsaw Stock Exchange during the company's privatization in 2005 and in a subsequent tender offer.
      

     

     

    Buyout

    Companies that want to keep up with dynamic developments on the market usually require external support: this can help them make the most of a strong market and enjoy the benefits of sector leadership. In many cases companies have insufficient resources and equity to finance exponential growth of organizational structures, technology, and human resources. Private equity funds specialize in taking advantage of the opportunities offered by the market.
    In the case of buyout transactions, we acquire part of the business – usually a majority stake. The founders often stay on as our partners in the company. Many entrepreneurs count on us to help them make a seamless transition to the next stage of their company’s development, in particular by contributing to the strategy, helping expand the business, e.g. through mergers and market acquisitions, and implementing sound financial practices. They also value our corporate governance and capital markets expertise.
    When we invest in dynamic companies operating in fast-growth markets we are prepared to wait for the effects of our work longer than most other financial investors. For example, unlike our competitors, we often postpone paying out dividends.
    We have completed buyout transactions in Kruk, Kofola, Zelmer and AVG Technologies.
    

    KRUK

    Kruk, the largest company now operating in the retail receivables market in Poland and Romania, was established in Wrocław by two young lawyers in 1998. The founders accurately identified demand for the outsourcing of retail debt collection in Poland's telecommunications, power, and retail banking sectors. The company developed very dynamically from the outset, but the entrepreneurs had insufficient capital and resources to keep up with the growth in the market. EI became interested in the company, and in 2003 our fund acquired a controlling stake. The founders kept the remainder, and one of them is still the company's CEO.
    A year later our fund made a follow-on investment in Kruk. This capital was spent on developing technology and organizational structures to keep up with the increasing customer numbers and the high volume of receivables being handled.
    As shareholders, together with the senior managers we drew up a strategy for Kruk’s further development. We jointly strengthened the management team and introduced new risk management and portfolio valuation procedures. Kruk developed its debt purchasing business and set up one of the first securitization funds on the market. In parallel, the company has also been expanding its presence on the receivables market in Romania, where it now leads as well as in the Czech Republic.
    In 2011, Kruk successfully debuted on the Warsaw exchange. Our fund sold a considerable part of its stake in the public offering, yielding a stellar return on the investment.
    

     

     

     

     

    
    

    Expansion financing

    Expansion capital is a form of financing that allows for the growth and expansion of a company. The capital may be used to finance the acquisition of a competitor or increase production capacity, to develop and market the product, or to provide additional working capital.
    Enterprise Investors offers not just capital but also knowledge, experience and partnership in the process of making key business decisions. Unlike banks, we do not give loans but invest our capital directly, and thus share the risk of the investment with the entrepreneur. What sets us apart from industry buyers is that we are never in direct competition with the entrepreneur. When we invest in a business, we undertake to support the current owners and management board in realizing their company's development strategy. Unlike stock market investors, when reaching decisions we do not rely solely on the current state of the market, preferring to take the longer-term view.
    Our funds have provided expansion financing to many successful firms in the CEE region, most notably W.Kruk, X-Trade Brokers, Dino, Wento and Macon. Our venture fund recently financed the development of Dystrybucja Polska, PBKM and Webmedia.
    

    MACON

    Established in the 1960s and privatized in the 1990s, Macon is the leading construction materials producer in Romania.
    Enterprise Investors decided to acquire 100% of Macon in 2006. We believed that combining Macon’s good market position and growth prospects with EI’s unique expertise in building value, corporate
    governance and management would strengthen Macon’s position and help it become a market leader. Macon’s financial results soon proved that assumption to be right. Thanks to effective cooperation with Enterprise Investors and especially following Macon’s complex restructuring, its sales increased by 30% and net profit grew by 70% in just one year.
    Macon’s further development strategy demanded the acquisition of a competitor. We found Simcor Group to be the best choice, and EI provided equity financing to Macon to acquire a majority stake. The €53 million transaction secured a leading position for Macon on its market.
    

    
    

    "Combining the market potential of Macon and Enterprise Investors' unique experience in effective management, corporate governance and building company value has enabled us to become the clear market leader. The acquisition of Simcor Group financed with the capital provided by EI-managed funds was the strongest contributing factor in this process."

    Marius Martin, President of Macon
    
    
    

    Management buyout

    Because no one knows a business better than its management team, measurable results are easier to achieve when a company's manager are also its shareholder. As a shareholder, Enterprise Investors is keen to maximize the managershareholder synergy to increase the value of each portfolio company. We achieve this by working closely with the management team when acquiring a stake in its business. This team carries out the intentions of the company's shareholders and also helps shape its strategies, objectives, and operating plans. What matters most in a management buyout is the motivation of the company's managers to meet not only the immediate strategic goals but also those spanning the next few years.
    To help develop management buyout and buyin transactions, since 2004 Enterprise Investors has sponsored the MBI & MBO Club – an informal networking organization affiliating managers from Central and Eastern Europe who are interested in pursuing management buyouts or buyins. We completed management buyins in Skarbiec, Gamet and Artima, the last two thanks to contacts made at club meetings.
    

    SKARBIEC

    Skarbiec is one of the oldest asset management companies in Poland. The company has secured a significant part of Poland's highly competitive investment funds market, which is dominated by fund
    managers tied to major banks. Skarbiec enjoys such a strong position thanks to its management team's creative approach to new product development, as well as to its sound management of funds entrusted to them by clients.
    In 2007 our fund bought 100% of the shares of Skarbiec, completing the first takeover of an asset management company by a private equity fund in Central and Eastern Europe. Soon after the transaction we sold a 7% stake in Skarbiec to a group of 12 key managers, who also benefit from a management options scheme that we introduced.
    The managers of Skarbiec have invested considerable resources of their own alongside us to purchase shares in their company, thereby demonstrating their confidence in the continuing growth of the business. For us as investors, this represents an additional guarantee of success.
    Our decision to invest in Skarbiec was based on several factors. The experience and competence of the management team were fundamental, as was the favorable macroeconomic outlook that facilitated the rapid growth of mutual funds. These, together with our financial sector expertise, are helping raise the company's value.
    

    
    

    "Enterprise Investors, as co-owner of Skarbiec, actively supports the company's growth. The investor's experience in the financial services sector allowed Skarbiec to develop much more dynamically in recent years. Also, the change of ownership has created many new opportunities for us."

    Bogusław Grabowski, President of Skarbiec Asset Management Holding
    

    Leveraged buyout

    Many of the private companies established in Central and Eastern Europe in the early 1990s had the opportunity to develop rapidly. Their founders have built businesses that now represent significant value and hold leading positions on their markets. The private equity funds managed by Enterprise Investors are keen to invest in these types of companies because of their potential to develop further.
    By selling 100% or close to 100% of their shares, the owners of these companies harvest their investment. They can do so for a variety of reasons – to find a successor before retiring, realize new business ideas, or devote their time to personal interests or charitable activities.
    Buying such a significant stake in companies with a high market value requires a greater capital commitment. This is why we use bank debt to finance so-called leveraged buyout transactions. The use of bank debt creates the potential to generate higher returns for the buyer and can make the transaction more attractive for the seller.
    We completed one of the first buyout transactions leveraged with bank debt in this part of Europe. Our track record in securing debt and building a financial structure for leveraged buyout transactions is unparalleled on the CEE private equity market. Our most significant leveraged buyout transactions to date include the acquisitions of Nomi, NordGlass, Sklepy Komfort and Harper Hygienics as well as the purchase of a controlling stake in DGS.
    

    NORDGLASS

    NordGlass is one of Europe’s largest manufacturers of automotive windshields. In 2007 our fund acquired 100% of the company from its founders in a leveraged buyout.
    Established in 1991 in Poland, the company operates two modern plants located near the Baltic coast that produce windshields for almost all models of passenger cars, trucks, buses and trains. NordGlass also has a nationwide windshield distribution and installation network. The firm has gained its unique position on the Polish and European markets thanks to the high quality of both its products and its customer service.
    The management team that took over in 2007 has systematically implemented the company’s growth strategy. As part of this appoach NordGlass has established its own sales organization in the key markets of the European Union, including Germany, France and the United Kingdom. By dynamically increasing sales in its own fitment centers, NordGlass is also helping raise professional standards across Poland’s windshield replacement market. The company is servicing the bank loan used for this transaction in line with the repayment schedule.
    

    
    

    "Since its inception, NordGlass has applied the most advanced production technologies and a flexible approach to customer needs. We built a company that is admired by foreign competitors and that became an attractive acquisition target for such a reputable investor as EI. This collaboration has allowed us to double revenues in only a few years and gain EU markets at the expense of the global giants in the industry."

    Grzegorz Łajca, President of NordGlass
    

     

     

    Enterprise Venture Fund I

    
    In 2008 we created our first venture fund, Enterprise Venture Fund I, with total capital of €100 million.
    The fund finances the expansion of small and medium-sized enterprises operating in the technology sector as well as in traditional sectors in Central and Eastern European countries.
    We are keen to work with companies that are active on the market, have a proven and successful business model and generate revenues and profits, at least at the operating profit level.
    This fund invests between €1 million and €6 million to finance the expansion of companies in exchange for a minority stake.