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ARX Equity Partners (“ARX”) has exited its 2007 investment in Slovenian producer of plastic components, Tomplast d.o.o. (“Tomplast”), and will generate an overall 4.1x cash-on-cash return multiple and an IRR exceeding 20%. The ARX exit was executed via a sale to funds managed by financial investor KJK Capital.

The Tomplast investment is consistent with the ARX focus on Central European succession-driven majority buy-outs, with a bias toward export-oriented precision manufacturing companies. ARX acquired a majority shareholding in Tomplast from its retiring founders in 2007. In 2008 Tomplast executed the add-on acquisition of Unitplast d.o.o. (“Unitplast”), which was also a succession-driven situation. Under ARX’s ownership both companies were fully integrated, while the enlarged business was repositioned to focus increasingly on automotive components. The company currently supplies larger and increasingly complex products from its modern Slovenian production facilities, utilizing technologies such as 2K and gas injection. Tomplast revenues grew from € 13 million in 2007 to over € 40 million in 2015, while employee headcount expanded from 77 to 300 during the ARX holding period.

ARX Managing Partner Brian Wardrop commented: „Our investment in Tomplast is a representative example of the types of opportunities available in the Central European lower mid-market. We succeeded in acquiring two smaller companies, which were both facing acute shareholder and managerial succession issues, in order to create an internationally competitive niche plastic components supplier.”

Advising on the sale were Arkas Corporate Finance (M&A), Ulcar & Partners (legal) and White & Case (legal).

On November 5, 2015, the Czech Private Equity and Venture Capital Association (CVCA) celebrated the 20th Anniversary of its foundation with a gala evening in Prague. We are pleased to announce that on this event Brian Wardrop, Managing Partner of ARX, was named as Private Equity Professional of the Last 20 years in the Czech Republic. This award resulted from a poll conducted by the CVCA where all members of the association participated. We are especially proud of the fact that our peers in the Czech private equity community have chosen to recognize the contributions of Brian, which we view as a positive reflection of the ARX market position and the firm’s dedication to Czech private equity.

We are pleased to announce that Jaroslav Horak, Chairman of the ARX Investment Committee, has been named as a finalist for the prestigious 2014 EY Entrepreneur of the Year award for the Czech Republic. The evaluation criteria for the EY Entrepreneur of the Year includes strategic orientation, global reach and financial results – combined with a evaluation of the nominee’s business spirit, their honesty and fairness, plus their activities outside the company in society at large. These evaluation criteria are clearly exemplified by Jaroslav’s contributions to the success of ARX, his achievements in the development of Albatros Media, in addition to his philanthropic work in the Czech Republic.

ARX Equity Partners (“ARX”) together with experienced healthcare investor Joseph Priel, completed the 100% buy-out of Slovenian healthcare services provider, Diagnosticni Center Bled doo (“DCB”; www.dc-bled.si). Details of the transaction were not disclosed.

DCB is the largest private healthcare service provider in Slovenia. The Company provides comprehensive outpatient and inpatient medical services in four locations. DCB performs more than 20,000 specialist examinations each year, primarily in the areas of gastroenterology and urology. ARX acquired DCB in order to utilize its robust existing business as a platform to further consolidate and grow its leading position in the Slovenian diagnostics sector.

Priel and his operating team will take an active, hands-on role in monitoring DCB and contributing to the value creation process. Priel founded Euromedic International in the early 1990s, which completed more than 100 acquisitions while working with multiple international private equity firms including GE Equity, Warburg Pincus and Montagu. Priel commented on the DCB opportunity, „We believe that DCB is ideally positioned to leverage its strong brand and market leadership to achieve growth through operating initiatives, new service offerings and add-on acquisitions.”

ARX Partner Bela Lendvai-Lintner added, „We are pleased to acquire DCB, which has an excellent reputation for quality patient care and a superb medical team.” Lendvai-Lintner went on to state that DCB is the fourth ARX acquisition in Slovenia, as the firm has previously acquired Donit Tesnit in 2006, Tomplast in 2007 and its add-on Unitplast in 2008.

DCB is the second ARX healthcare services buy-and-build transaction. ARX previously acquired Lexum – a Czech operator of ophthalmology clinics – which later completed a complementary add-on in Poland. Lexum was ultimately exited to strategic investor, Optegra.

ARX Equity Partners (“ARX”) has completed the exit of its investment in Lanex a.s. (“Lanex”). Czech entrepreneur and industrialist, Rudolf Bochenek, acquired Lanex on November 18, 2014.

Lanex is a specialized producer of ropes and fibers with wide assortment range covering climbing, marine, paper and hobby applications, as well as production of fibers for further processing. The company holds the market leadership position in the Czech Republic and is the third largest producer of paper carrier ropes in the world. Lanex is also among the top 5 producers of climbing and safety ropes globally.

ARX partnered with Lanex’s CEO Rudolf Gregorica and acquired a majority stake in Lanex in October 2008 in a management buyout transaction. During its investment period, ARX supported investment into new production technologies and entering into new markets, including the establishment of a production subsidiary in Russia. As a result of strengthened product development and increased sales activities, Lanex has consistently grown sales and profitability and will achieve € 31 million in sales and € 3 million in EBITDA in 2014.

ARX Partner Tomas Lansky commented, ”Lanex is an example of a niche Central European manufacturer with solid know-how and competitive advantage, which is able to compete and successfully expand globally. Lanex has doubled its profit margin compared to 2008 when ARX initially invested, which was a result of a solidified position on the Czech market and a successful international expansion“.

Placek Holding and Stephon Holdings Limited announced today the signing of an agreement according to which Super Zoo has acquired Kakadu. The transaction includes transfer of 100% of shares.

Stephon Holdings is controlled by private equity funds managed by ARX Equity Partners. Stephon Holdings invested in Kakadu in March 2009, supporting its organic expansion in the following years. Today the company operates 41 specialized pet product stores in Poland and is leading this market segment. Kakadu took over Telekarma in 2011, obtaining a strong position on the Polish pet products internet sales market.

“Placek Holding is constantly investing in building its retail business in Central and Eastern Europe and is looking for new market opportunities. This is a valuable acquisition for us, having a well-established position in the Czech Republic, Slovakia and Latvia, Kakadu and Telekarma will benefit from Placek Holding’s marketing strengths and resources,” said Dusan Placek, the sole owner of Placek Holding.

“I view the transaction as recognition of the long term successful work of Kakadu employees in building strong position on the Polish market. I am convinced that Super Zoo will benefit from those efforts and further expand Kakadu and Telekarma. Becoming part of Placek Holding will strengthen leading position of Kakadu on the Polish market and will allow for its further, stable development,” commented Wojciech Filipczyk, ex CEO of Kakadu.

TPA Horwath Corporate Finances.r.o.(Czech Republic) was the leading buy-side advisory to Placek Holding.

ARX Equity Partners (“ARX”), the lower mid-market buyout leader in Central and Eastern Europe, together with experienced executive Jacek Gromniak, have completed the MBI of ANWIS Polska Sp. z o.o. (“Anwis”). Financial details of the transaction, made by ARX CEE III LP, were not disclosed.

Anwis (www.anwis.pl) is a Polish producer of custom-made window coverings and one of the leading manufacturers of window coverings and related components in Europe. The company has been operating in the region for 35 years and has recently seen rapid growth, with sales reaching € 22.6 million in 2013.

ARX and Gromniak plan to grow Anwis through organic expansion in existing and new geographies, with selective add-on acquisitions possible in the medium term. At present Anwis operates in Poland, where it has a market leading position, and Germany. The company will seek to further strengthen its position in these markets, as well as looking towards international expansion in the Benelux countries and France.

The market for tailor-made interior window coverings is forecast to grow steadily in the coming years, with areas addressed by Anwis forecast to grow faster than the overall market at in excess of 5% per annum over the medium-term. The German market for tailor-made interior window coverings is currently worth around € 400 million, while the Polish market for interior and exterior window coverings is approximately half of this size.

Gromniak, who was previously CEO of Somfy Poland, a major multinational manufacturer of motors and controls for window covering systems, will become CEO of the business. He commented: “Anwis is a clear market leader in Poland in custom-made interior windows coverings. It has grown sales dynamically over the past few years, exceeding the overall market trend, and we believe that it can further leverage its strong reputation for product quality and service capabilities to grow in Poland as well as internationally.”

ARX Co-Managing Partner Jacek Korpala added: “Anwis is great illustration of the succession-driven dealflow opportunity in CEE, and another example of ARX providing a tailored transaction solution to a retiring founder while partnering with a seasoned and entrepreneurial buy-in manager. We look forward to supporting the company in the next phase of its growth.”

Anwis founder Antoni Wiśniewski, who had led the company for 35 years, will continue supporting the company as supervisory board member.

The transaction follows ARX’s acquisition of Gramex, a Hungarian manufacturer and bottler of non-alcoholic beverages, earlier this year, and the full exit of its investment in Polish plastics processor, Ergis Eurofilms in December 2013, which generated an overall internal rate of return of over 33% and 4.5x cash-on-cash multiple.

On June 3, 2014, members of the Polish Private Equity & Venture Capital Association (PPEA) met to celebrate the award of „Private Equity Diamonds” for the year 2013 with a gala evening in Warsaw. We are pleased to announce that on this event Jacek Korpala, Managing Partner of ARX, was named as Private Equity Personality of the year 2013 in Poland. The ceremony was the culmination of the V edition of Private Equity Forum – a conference, which every year brings together the leaders of the sector in Poland. We are especially proud of the fact that Jacek’s contribution to the development of the industry were recognized by the Chapter composed of PE investors and professionals focused on the sector under the leadership of the Director of the Polish Private Equity & Venture Capital Association.

ARX Equity Partners (“ARX”) and Darby Private Equity (“Darby”), the private equity arm of Franklin Templeton Investments, together with experienced food industry executive Gerard Lenihan, have completed the buyout of Gramex 2000 Kft. Financial details of the transaction were not disclosed.

Gramex (www.gramex2000.hu) is a leading Hungarian manufacturer and bottler of nonalcoholic beverages, providing high quality products under its own brands, as well as in partnership with strong local and international retailers and A-brand producers. ARX, Darby and Lenihan intend to grow Gramex in the coming years organically, via regional expansion. Among other previous executive roles, Lenihan was also the CEO in a private equity-backed management buyout in Hungary in 1996. „Gramex has grown sales dynamically over the past three years, exceeding the overall market trend, and we believe that Gramex can further leverage its reputation and service capabilities to grow in Hungary as well as internationally”, said Lenihan.

ARX Equity Partners (“ARX”) has fully exited its investment in Polish plastics processor, ERGIS-EUROFILMS S.A. (“Ergis”), generating an overall internal rate of return of over 33% and 4.5x cash-on-cash multiple. The ARX exit was executed via a series of block trades to investors on the Warsaw Stock Exchange in December 2013, which followed the partial realization of the Ergis investment in 2006.

ARX originally acquired a majority shareholding in the packaging company in 2003 in a leveraged management buyout transaction in partnership with Ergis Managers Tadeusz Nowicki and Marek Gorski. Several value-creation initiatives have been implemented during the period of ARX ownership, including the relocation and consolidation of production sites, divestments of non-core assets and the completion of three complementary add-on acquisitions. Ergis revenues tripled during the period of ARX ownership, growing to more than € 153 million in 2012, and today the company generates more than half of its revenues outside Poland.

ARX Co-Managing Partner Jacek Korpala commented, “Our investment in Ergis is an excellent example of the long-term value-creation potential of the CEE lower mid-market. Key pillars of the ARX investment strategy were successfully implemented in Ergis, including the formation of a successful partnership with management and creating value through add-on acquisitions.”