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Trimming the sails

Central Europe Private


Equity confidence survey

Private Equity, May 2011


PE professionals in Central
Europe are adapting to
the changed environment,
trimming their sails to
successfully identify and act
on new opportunities with
heightened confidence.

This publication contains general information only. The publication has been prepared on the basis of information and
forecasts in the public domain. None of the information on which the publication is based has been independently
verified by Deloitte and none of Deloitte Touche Tohmatsu Limited, any of its member firms or any of the foregoing’s
affiliates (collectively the “Deloitte Network”) take any responsibility for the content thereof. No entity in the Deloitte
Network nor any of their affiliates nor their respective members, directors, employees and agents accept any liability
with respect to the accuracy or completeness, or in relation to the use by any recipient, of the information, projections
or opinions contained in the publication and no entity in Deloitte Network shall be responsible for any loss whatsoever
sustained by any person who relies thereon.
2
Introduction

Welcome to the latest edition of the Deloitte Central One factor in this report that I find particularly
Europe Private Equity Confidence Survey. This is a key interesting is the significant rise in the proportion of
Deloitte publication that we have issued twice a year professionals expecting the most competition among
since its launch in 2003. Through the consistency of investors to be for growing medium-sized concerns. At
questions and matrices across so many years, 49% of the sample, this is the highest proportion we
it provides a uniquely accurate map of the changing have ever recorded. So while in the last survey 74%
levels of confidence among the region’s PE were predicting most interest to be in defensive,
professionals through all the ups and downs of recent market-leading stocks, there now appears to be
economic history. a stronger appetite for risk and growth.

In the last issue in October 2010, I introduced you to It is also interesting to note that the strengths of
the era of the ‘new normal’, based on trends charted manufacturing and food & beverage businesses are
since the first signs of recovering optimism ushered in attracting the attention of almost half the sample,
a new era of stability. while technology, media and telecommunications
(TMT) attract less investor interest in comparison to
In this issue, I can go a step further. That optimism previous years.
about the market conditions likely to prevail over
the next six months has now reached its highest level The results of the survey show that PE professionals in
of any time since the pre-crisis days of April 2007, Central Europe are adapting to the changed
doubtless driven both by respondents’ personal environment, trimming their sails to successfully
experience of increasing activity and by the strong GDP identify and act on new opportunities with heightened
growth apparent in countries like Poland, the Czech confidence.
Republic and Slovakia.

So, are we on the verge of a powerful new era of


deal-making? The signs are encouraging, with
significantly more PE professionals expecting to buy
more than they sell in the next few months, and 77%
planning to spend the majority of their time focusing
on new investments. Indeed, the Investments section Garret Byrne
starting on page 11 of this report highlights some large Partner
deals which suggest we might already be entering such M&A Transaction Service Leader
an era. Central Europe

May 2011
Overview

Key findings Central Europe PE Confidence Index

• Survey findings indicate that gradual economic 180


recovery is reflected in the attitudes and 156 159
160 154 155
expectations of the CE region’s PE professionals 148 153
153 140
140 149
• More respondents than in October 2010 now either
139 138
expect the economic environment to remain 120
the same or to improve 118 102 117
100
• Confidence levels are now at their highest since 100
the peak of April 2007, in line with those last 80
experienced before the crisis 78
60
• Identifying new investments will be the primary
focus of PE practitioners over the next six months 40 48

• For 74% of the respondents, there is a strong focus 20


on the Visegrad Four (Czech Republic, Hungary,
0
Poland and Slovakia) for investment opportunities
3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 1
00 00 00 00 00 00 00 00 00 00 00 00 00 00 01 01 201
• Manufacturing and Food & Beverage are the two a r. 2 ep. 2 ar. 2 ep. 2 ar. 2 ep. 2 ar. 2 ct. 2 pr. 2 ct. 2 pr. 2 ct. 2 pr. 2 ct. 2 pr. 2 ct. 2 pr.
M S M S M S M O A O A O A O A O A
most attractive sectors for new investment

Central European Private Equity Index


The Index has risen by 15 points since October 2010 For 74% of the respondents, there is a strong focus on
to 153, its highest level since the pre-crisis days of the Visegrad Four (Czech Republic, Hungary, Poland and
April 2007. Slovakia) for investment opportunities. This is very similar
to the findings of the April 2009 survey, highlighting that
The general sense of optimism reflected in this edition confidence in the region remains stable. Approximately
of the Index reflects the positive trend that commenced 80% of the deals included in our investments section
after its low point of October 2008 (when it plummeted took place in these countries.
to 48). It also shows a sharp improvement over the
preceding period from April to October 2010, when Interestingly, there has been a leap in the proportion of
the Index showed a very slight decline. those PE practitioners expecting the highest competition
for new investment opportunities to be in medium-sized
There is a clear expectation of a forthcoming increase in growing companies (up from 26% in October 2010 to
market activity levels during the months to come, with 49% now). This suggests a growing appetite for risk
98% of respondents expecting these either to grow or as more investors indicate their eagerness to focus on
to remain the same. growing businesses.

Similarly, there is an anticipation of further improve-


ments in the overall economic climate. Respondents
expect to buy more than they sell over the next six
months, and 77% plan to spend the majority of their
time focusing on new investments.

4
Survey
results
Survey results

Economic climate

For this period, I expect the overall economic climate to:

4% 4% 4%
100 7%
10% 13% 9% 10%
18%
31% 26% 27% 28%
36%
44%
75 37% 53% 51%
57%
74% 61% 62% 47%
74% 64% 93%
50
69% 70% 69% 67%
64%
53% 56% 43%
25 47%
39%
26% 32% 29% 43%
18% 5%
13% 7% 6%
0
3 03 4 04 5 05 6 6 7 7 8 8 9 9 0 0 1
00 20 00 20 00 20 00 00 00 00 00 00 00 00 01 01 01
r. 2 p. r. 2 p. r. 2 p. r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Decline Remain the same Improve

43% predicting an improvement is the highest level expectations of Central European countries for 2011
since October 2006 – well before the advent of including Poland (4.2%), the Czech Republic (2.0%) and
the financial crisis. With 90% foreseeing either Slovakia (3.3%). Source, The Economist Intelligence
improvement or no change, this is an overwhelmingly Unit (EIU).
optimistic outcome that reflects the real GDP growth

Debt availability
For this period, I expect the availability of debt finance to:

4% 5%
100 7%
11%
19%
40% 39%
48% 50% 46% 52%
75
42% 62% 61% 57%
67% 67% 64%
78%
84% 75%
50 67%
36%
60% 61%
52%
25 47% 46% 48%
33% 38% 33% 39% 38% 36%
16% 18% 22% 18%
14%
0
03 03 04 04 05 05 06 00
6
00
7
00
7
00
8
00
8
00
9
00
9
01
0
01
0
01
1
r. 20 20 20 20 20 20 20 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
p. r. p. r. p. r.
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Decrease Remain the same Increase

With no respondents expecting a decline in the avail- reports, signalling the confirmation of a return to


ability of debt finance, the overall response is marginally a stable debt market, and in major contrast to
more positive than in October 2010. However, expecta- the response of October 2008.
tions have been relatively stable over the last three

6
Investors’ focus

For this period, I expect to spend the majority of my time focusing on:

100

30%
42%
75 50% 49%
69% 62%
68% 74% 64%
74% 80% 77% 79% 77% 77%
88% 86%
50
53%
31% 55%
14% 48%
25 29% 24%
24% 6% 13%
22% 12% 16% 14% 17%
7% 24%
17% 4% 19% 17% 5%
7% 8% 12% 7% 9% 3% 3% 3% 13% 12% 6%
0
3 03 4 04 5 05 6 6 7 7 8 8 9 9 0 0 1
00 20 00 20 00 20 00 00 00 00 00 00 00 00 01 01 01
r. 2 p. r. 2 p. r. 2 p. r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

New investments Portfolio management Raising new funds

77% of respondents (the highest proportion reported The significant 13% rise in the six months since October
since April 2007) are expecting to focus primarily on 2010 suggests an increased appetite for deals, which in
new investments as a result of more positive overall turn should lead to an acceleration in the number of
market expectations and better debt availability. transactions completed.

Size of transactions
For this period, I expect the average size of transactions to:

3% 4%
100 8% 7% 7%
11% 12% 9% 9% 13%
21%
28% 29%
35%
75 56% 58%
57% 37%
56% 53% 68%
50% 73%
64% 67% 65% 74%
50
68%
60%
72% 57%

25 52%
40% 44% 40% 42%
38% 36% 24%
27% 24% 22% 28%
3% 19%
11% 8% 11%
0
03 03 04 04 05 05 06 00
6
00
7
00
7
00
8
00
8
00
9
00
9
01
0
01
0
01
1
r. 20 20 20 20 20 20 20 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
p. r. p. r. p. r.
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Decrease Remain the same Increase

While over two thirds (68%) of respondents predict that Private Equity of the Emitel Polish TV and radio
deal sizes will remain at the same levels as recent times, broadcast infrastructure operator from Telekomunikacja
there has nonetheless been a steady rise since October Polska Group for €425m and the Macquire acquisition
2008 in the expectation that average deal sizes will rise. of Ceske Radiokomunikace from Mid Europa Partners
Recent large deals include the acquisition by Montagu for €574m.

Trimming the sails Central Europe Private Equity confidence survey 7


Market activity

For this period, I expect the overall market activity to:

6% 5% 3% 5% 2%
100
9%
16% 19% 19%
26%
38% 35% 28%
44% 44% 44% 43%
75 52%
31% 47%
58% 50%
64% 80%

50 62% 65%

74% 67%
62% 65%
53% 56% 56% 56% 55%
25 48% 47%
37% 47%
27% 12%
19% 16%
8%
0
3 03 4 04 5 05 6 6 7 7 8 8 9 9 0 0 1
00 20 00 20 00 20 00 00 00 00 00 00 00 00 01 01 01
r. 2 p. r. 2 p. r. 2 p. r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Decrease Remain the same Increase

The response to this question is a further indication of change in October 2010. The 55% majority expecting
the emergence of the ‘new normal’ that we identified in an increase in activity has fallen by 12% during the same
the last issue of the Index. It shows that 43% of period, but the proportion of ‘pessimists’ has been
respondents expect market activity levels to remain virtually wiped out since the massive 80% majority that
the same, a significant rise from the 28% predicting no predicted decline in October 2008.

Investment return
For this period, I expect efficiency of my financial investments to:

2% 4% 6% 3% 4% 5%
100 7% 9%
16%
23% 24%
28% 40%
41%
75
69% 67% 67% 52% 64%
63% 61% 65% 61%
53% 79% 59%

50 57%
77%
68% 55%
57%
25 43%
31% 31% 33% 33% 32% 33% 32% 35% 36%
30%
21% 5% 19%
0
03 03 04 04 05 05 06 00
6
00
7
00
7
00
8
00
8
00
9
00
9
01
0
01
0
01
1
r. 20 20 20 20 20 20 20 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
p. r. p. r. p. r.
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Decline Remain the same Improve

The proportion of market participants predicting The proportion of those expecting no change (64%) is


an improvement in the efficiency of their investments at its highest since October 2009, while this is the first
has fallen by 7% since October 2010, but this is still time since the verge of the financial crisis in April 2008
the second highest score for this metric since March that no respondents have predicted a decline.
2005.

8
Investors’ activities

For this period, I expect to

100 6% 6% 4% 2%
10% 7% 9% 9% 11% 11% 14% 7%
11% 13%
23% 13%
32% 32% 13% 26% 32%
26% 18% 29%
22% 27% 29% 23%
75 25% 44%
38%
23%
26%
50
80% 76% 70% 64% 66%
67% 68% 68% 64% 62% 66% 68%
62%
25 52% 54% 50%
42%

0
3 03 4 04 5 05 6 6 7 7 8 8 9 9 0 0 1
00 20 00 20 00 20 00 00 00 00 00 00 00 00 01 01 01
r. 2 p. r. 2 p. r. 2 p. r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
Ma Se Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Sell more Buy and sell equally Buy more

There is a clear indication that PE funds are keen on


acquisitions over the next six months, with two-thirds of
all respondents expecting to buy more than they sell.

Competition for new investments


For this period, I expect the highest competition for new investment opportunities in:

100

75 56% 53% 53% 56% 54% 53% 51%


65% 60% 61%
69% 68% 67% 65%
74%

50

40% 43% 47%


25 44% 47% 44%
35% 40% 39% 35%
31% 32% 33% 26% 49%
7% 3%
0
04 00
4 05 00
5 06 00
6
00
7
00
7
00
8
00
8
00
9
00
9
01
0
00
9
01
1
r. 20 .2 r. 20 .2 r. 20 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2 t. 2 r. 2
p p
Ma Se Ma Se Ma Oc Ap Oc Ap Oc Ap Oc Ap Oc Ap

Market leaders Middle size growing Co. Start ups

The increasing emphasis on medium-sized prospects score for this metric since the question was first asked in
with growth potential, up from 26% six months ago to March 2004. The mid market segment has seen many
virtually half of the sample, indicates the return of acquisitions by ARX, Baltcap and Resource partners over
an appetite for risk. The 49% expecting heightened the last six months. We expect continued buoyancy in
competition in that middle market is, in fact, the highest this space as entrepreneurs of the 1990’s seek exits.

Trimming the sails Central Europe Private Equity confidence survey 9


Industry focus

For this period, I expect to focus on opportunities in the following sector: Opportunities in the Manufacturing and Food & Beverage
(%) industries dominate the survey response, with a combined
Technology, Media
44% of respondents identifying them as their key areas of
9% 13%
& Telecommunications focus, up from 31% in September 2005. With 13% of
11% Financial Services the sample, the Technology, Media & Telecommunications
4% Energy & Resources sector has experienced a decline in interest. A high number
2% Support services (0%)
4% of deals in diverse segments characterise recent activity in
Manufacturing
the Manufacturing industry. Notable examples include:
Food & Beverage
15% Health Care
Advent’s acquisition of pet food manufacturer Provimi and
29%
Consumer Business - Retail Arx’s investments in hydroinsulation manufacturer KRPA
Other Dehtochema and household care products manufacturer
Bochemie Group; Highlander’s investment in food packaging
manufacturer Akomex; and Resource Partners’ investment in
food manufacturer Melvit.

Regional focus

For this period, I expect to focus on investment opportunities in: Overwhelming support (74%) for the Visegrad Four (Czech
(%) Republic, Hungary, Poland and Slovakia) is primarily due to
two factors. First, these countries have largely overcome
9% 9%
2%
6%
the crisis and are now successfully on track to macro-
Adriatics (BA, HR, SI, RS)
Balkans (BG, MK, RO)
economic stability and reform. Secondly, they are much
Baltics (EE, LT, LV) (0%) bigger markets than others in Central Europe and their
Visegrad 4 (CZ, HU, PL, SK) prosperity is largely driven by German investment activities.
Further East
Other Interest in other clusters within the wider region appears to
74% be highly fragmented. By contrast, the Balkans and
Adriatics are fragile from a macro-economic perspective
because of the spillover effects of the Greek crisis.
The influence of the issues affecting the Greek banking
sector and its high risk margins is causing most difficulties
for recovery in the Balkan countries. The Baltics are
performing well from a macro-economic perspective, but
because they are much smaller markets they have fewer
opportunities to attract investment from abroad.

10
Fund raising

Company Fund Value Status Time Description


€m

Alternative Private Alternative Private 81 Closing March Alternative Private Equity which focuses on mid-market equity
Equity FGS Equity 2011 investments in Croatia, has completed the closing of Alternative
Private Equity FGS at approx €81m. APEQ, a generalist fund,
will provide growth capital and buyout funding to medium
sized companies in Croatia.

Selected significant exits

Company Country Seller Buyer Period Value Stake Description


€m

Aster Poland Mid Europa Liberty Global, Dec 2010 595 N/A Mid Europa Partners entered into an agreement to sell
Sp. z o.o. Partners LLP Inc. Aster, a leading provider of media and communication
services in Poland, to UPC Polska Sp. z o.o., an affiliate
of Liberty Global, Inc., for a consideration of circa
€595m. The transaction is subject to regulatory
approval by the Polish competition authorities, and is
expected to close in the first half of 2011.
BONTONFILM Czech Bancroft Central Mar 2011 9 100% Bancroft Eastern Europe Fund agreed to sell
a.s. Republic Private Equity European Bontonfilm a.s., the Czech Republic-based film
LLP Media distribution company to Central European Media
Enterprises Enterprises Limited (CME), the listed Czech Republic-
Ltd. based media company that operates broadcasting,
internet and television content businesses for circa
€9m.
BorsodChem Hungary VCP Vienna Wanhua Feb 2011 1.230 58% Permira, VCP Vienna agreed to sell 58% of their stake
Zrt &  Permira Industrial in BorsodChem Zrt, the Hungary-based chemical
Group Co., group to Wanhua Industrial Group Co., Limited.,
Ltd. the Chinese polyurethane raw materials producer
through a call option for a consideration of €1.23bn.
České Czech Mid Europa Macquarie Jan 2011 574 N/A Mid Europa Partners sold České Radiokomunikace,
Radiokomu- Republic Partners a broadcasting and communications company to
nikace a.s. Australian investment bank Macquarie for circa
€574m.
Kruk Poland Enterprise IPO Apr 2011 78,7 50% Enterprise Investors (PEF IV), completed a partial
Investors exit from Kruk (loss prevention and receivables
management services provider) in an IPO on
the Warsaw Stock Exchange. PEF IV sold almost 50%
of the company, for PLN 39.7 per share. The sale
yielded gross proceeds of $116.7m (€78.7m) and
an 8x investment multiple. EI has retained a 24.8%
stake in Kruk.
Mobilkom Czech Penta Divenno Feb 2011 N/A 100% Penta Investments Limited agreed to sell Mobilkom,
a.s. Republic Investments Holdings a.s., a Czech Republic-based company engaged
Limited Limited in the wireless, internet, and fixed-line telephone
services to Divenno Holdings Limited, the Czech
Republic-based investment holding company, for
an undisclosed consideration.

Trimming the sails Central Europe Private Equity confidence survey 11


Company Country Seller Buyer Period Value Stake Description
€m

Novaservis Czech KBC Private Ferro SA Apr 2011 48 100% KBC Private Equity NV sold Novaservis a.s., a Czech
a.s. Republic Equity NV Republic-based distributor of taps and other
bathroom accessories, to Ferro SA, a Poland-based
company, for circa €48m.
PharmaSwiss Poland Enterprise Valeant Feb 2011 52,5 N/A Enterprise Investors (PEF VI) is to sell its entire stake
SA Investors Pharma- in PharmaSwiss SA for a total of €52.5m. PEF VI
ceuticals will sell its shares, along with the other stock-
International, holders, in a 100% sale of the company to Valeant
Inc. Pharmaceuticals International, Inc., in a transaction
valued at approximately €350m.
Tes Vsetin a.s. Czech Penta Advent May 2011 N/A 100% Penta Investments Limited agreed to sell TES,
Republic Investments International a leading European manufacturer of tailormade
Limited power generators and components used in
the production of hydro, wind and non-renewable
energy generation to Advent International for
an undisclosed amount. TES is also a manufacturer
and supplier of large specialised electric motors for
various industrial applications.
Zabka & Czech Penta Tesco Stores Dec 2010 47,6 100% Penta Investments Limited agreed to sell 81 Zabka
Koruna (PR Republic Investments ČR a.s. and 47 Koruna stores in Czech Republic to retail
Market s.r.o.) Limited stores operator Tesco Stores ČR a.s. for a considera-
tion of circa €47.55m.
Zabka Polska Poland Penta Mid Europa Feb 2011 N/A 100% Penta Investments signed an agreement to sell 100%
SA Investments Partners LLP of Zabka Polska SA, the leading convenience store
Limited chain in Poland, to Mid Europa Partners, for undis-
closed consideration.

Investments

PE House Country Company Period Est. Value Stake Description


€m

Abris Capital Poland WestLB Bank Dec 2010 64,1 N/A Abris Capital, jointly with Polish brokerage Dom
Polska Maklerski IDM SA (IDMSA) completed the takeover
of WestLB Bank Polska, for a consideration of circa
€64.125m.
Advent Hungary Provimi Pet Food Mar 2011 188 N/A Advent International agreed to acquire Provimi
International Pet Food, a leading European manufacturer of pet
food, from Provimi Group, for an enterprise value of
€188m.
Advent Czech Republic Tes Vsetin a.s. May 2011 N/A 100% Advent International agreed to acquire TES, a leading
International European manufacturer of tailormade power genera-
tors and components used in the production of
hydro, wind and non-renewable energy generation
from Penta Investments Limited for an undisclosed
amount. TES is also a manufacturer and supplier of
large specialised electric motors for various industrial
applications.

12
PE House Country Company Period Est. Value Stake Description
€m

ARX Equity Poland CS Recycling Dec 2010 N/A 51% ARX Equity Partners acquired a 51% shareholding in
Partners Sp. z o.o. CS Recycling Sp. z o.o. that provides plastic recycling
services for an undisclosed consideration.
Arx Equity Czech Republic KRPA Feb 2011 N/A N/A BHQ Czech a.s., the Czech Republic-based construc-
Partners Dehtochema, tion and electrical equipment holding company,
a.s. a portfolio company of Arx Equity Partners s.r.o.,
acquired hydroinsulation band manufacturer
KRPA Dehtochema, a.s. from KRPA Holding SA for
an undisclosed consideration.
Arx Equity Czech Republic Bochemie Group Nov 2010 N/A N/A ARX Equity Partners has joined current owner Benson
Partners Oak Capital as a minority investor in the Bochemie
Group, a leading producers of household care
products and a manufacturer of high value-added
specialty chemicals.
BaltCap Lithuania UAB Kelprojektas Jan 2011 N/A N/A BaltCap, acquired UAB Kelprojektas, the Lithuania-
based transport infrastructure engineering company,
for an undisclosed consideration.
BaltCap Latvia Oobelisk Dec 2010 N/A N/A BaltCap provided financing for corporate media
production start-up company Oobelisk, in return for
a majority stake in the company.
BaltCap Estonia Trev-2 Grupp AS Dec 2010 N/A N/A BaltCap acquired a minority stake in Estonian road
construction company Trev-2 Grupp AS, for an undis-
closed consideration.
East Capital AB Serbia B92 A.D. Nov 2010 3,9 84,9% Astonko Ltd, a Cyprus-based acquisition vehicle
which is a joint venture between East Capital AB and
Stefanos Papadopoulos, the Serbia-based private
investor acquired a 84.99% stake in B92 A.D.,
the Serbia-based radio broadcaster, from Media
Development Loan Fund, for a consideration of circa
€3.99m.
Highlander Poland Akomex Nov 2010 4 53% Highlander Partners LP, acquired a 53% stake in
Partners LP Sp. z o.o. Akomex Sp z o.o., manufacturer of cardboard
packaging, from Sebastian Sliwa, the Poland-based
private investor, for a consideration of circa €4m.
Innova Capital Romania Provus Service Jan 2011 N/A 96% Innova Capital Sp z o.o., acquired a 96% stake
Sp zoo Provider SA  in Provus Service Provider SA, Romania which is
engaged in issuing ATM card and processing services,
volume printing and card personalisation services to
the banking, retail and telecom sectors. The acquisi-
tion was from Turkven Private Equity, for an undis-
closed consideration.
Krokus Private Poland Catermed Nov 2010 N/A 55% Krokus Private Equity (NPN II) acquired a 55% stake in
Equity Sp. z o.o. Catermed Sp. z o.o., that provides catering services to
hospitals, for an undisclosed consideration.
Mid Europa Hungary Waberer's Mar 2011 N/A 49% Mid Europa Partners signed an agreement to
Partners LLP acquire a 49.05% stake in Waberer's, a Hungarian
road freight transport company, for an undisclosed
consideration.

Trimming the sails Central Europe Private Equity confidence survey 13


PE House Country Company Period Est. Value Stake Description
€m

Mid Europa Poland Diagnostyka Feb 2011 N/A N/A Mid Europa Partners entered into an agreement to
Partners LLP Sp. z o.o. acquire a strategic stake in Diagnostyka Sp. z o.o.,
a healthcare equipment and software provider,
and committed to inject new equity to support
Diagnostyka’s growth strategy. The transaction is
subject to customary closing conditions, including
competition clearance.
Mid Europa Poland Zabka Polska SA Feb 2011 N/A 100% Mid Europa Partners signed an agreement to acquire
Partners LLP 100% of Zabka Polska SA, the leading convenience
store chain in Poland, from Penta Investments, for
undisclosed consideration.
Montagu Poland Emitel Mar 2011 425 N/A Montagu Private Equity is to acquire Polish TV and
Private Equity - pending radio broadcast infrastructure operator Emitel from
Telekomunikacja Polska Group. The deal is expected
to close for PLN1.7bn (€425m).
Penta Slovakia Dexia banka Mar 2011 N/A 88,7% Penta Investments Limited acquired a 88.71% stake
Investments Slovensko a.s. in Dexia banka Slovensko a.s., the Slovakia-based
Limited bank, from Dexia SA, the Belgium-based retail and
commercial bank, for an undisclosed consideration.
Penta Czech Republic AB Facility a.s. Dec 2010 N/A N/A Penta Investments Limited, agreed to acquire AB
Investments Facility SA, the Czech Republic-based facilities
Limited management company, from Genesis Capital s.r.o.,
for an undisclosed consideration.
Resource Poland Interchem SA Nov 2010 N/A N/A Resource Partners Spz, agreed to acquire a majority
Partners stake in Interchem SA, the pharmaceutical and
Sp. z o.o. household goods retailer, for an undisclosed
consideration.
Resource Poland Sps Handel SA Nov 2010 N/A N/A Resource Partners Spz agreed to acquire a majority
Partners stake in retail chain Sps Handel SA for an undisclosed
Sp. z o.o. consideration.
Resource Poland Melvit SA Nov 2010 N/A N/A Resource Partners Spz agreed to acquire a majority
Partners stake in food manufacturer Melvit SA for an undis-
Sp. z o.o. closed consideration.

14
Contacts & additional resources

Private Equity regional contacts


Garret Byrne Bela Seres Miroslav Svoboda Dariusz Kraszewski
M&A Transaction Services Regional Managing Partner Tax M&A Leader Consulting M&A Strategy
Leader Financial Advisory Tax & CDD
+420 246 042 339 +36 1 428 6936 +420 246 042 924 +48 22 511 06 33
gbyrne@deloitteCE.com bseres@deloitteCE.com msvoboda@deloitteCE.com dkraszewski@deloitteCE.com

Central European Private Equity Confidence Survey


Central European Private Equity Confidence Survey reflects the expectations of private equity professionals focusing
on Central Europe. The survey has been conducted twice a year since March 2003 and the results are based on
questionnaires sent to private equity firms around the region.

Previous editions are available at www.deloitte.com/ce-private-equity-confidence

Deloitte Business Sentiment Index


The Deloitte Business Sentiment Index is a research-based analysis of the opinions of senior executives on a number
of important business-related issues. The executives who participate in the Business Sentiment Index represent some
of the largest companies within six countries of Central Europe: Croatia, Czech Republic, Hungary, Poland, Romania
and Slovakia.

For more information go to www.deloitte.com/bsi

Up Front
Third edition of Up front publication that compiles the views of some of the biggest names in the corporate sector,
private equity and financial markets to share their experiences and provide their insights into the M&A landscape in
2011 and beyond.

For more information click here

Trimming the sails Central Europe Private Equity confidence survey 15


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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member
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