Genesis takes minority stake in Czech retail merger

Genesis will tap its vehicle Genesis Private Equity Fund III to provide financing for the new company in return for a material minority share.

HP Tronic acquired a 20% stake in Datart in 2014. The new company is expected to generate sales of CZK 15bn and command a 20% market share in the Czech Republic and Slovakia.

Genesis partner Ondřej Vičar told unquote" the firm has known HP Tronic CEO Daniel Večeřa for many years. Furthermore, he said that the macroeconomic situation and expected growth in consumer demand favour consolidation in the consumer electronics market.

The new company will operate in Slovakia and Poland in addition to the Czech Republic.

Company
HP Tronic was founded in 1989 and is headquartered in Zlin. It operates the Euronics chain, which has 120 stores, three storage facilities and an online shop. It sells ETA, GoGen, JVC and Hyundai products in the region. The company employs more than 1,400 people and achieved a profit of CZK 104m from a CZK 9.1bn turnover in the financial year 2015/16.

Datart was founded in 1990 and is headquartered in Prague. It operates 46 shops, 34 of which are located in the Czech Republic and 12 in Slovakia. It employs 1,200 people and posted revenues of CZK 5.1bn with a profit of CZK 27.4m in the financial year 2015/16. This is a revenue growth of almost 11% year-on-year and a tripling in profit, according to a statement.

People
Genesis Capital – Ondřej Vičar (partner).
HP Tronic – Daniel Večeřa (CEO).
Datart – Pavel Bádal (CEO).

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• Topics
• Buyouts
• CEE
• Consumer
• Czech Republic
• Genesis Capital
• Build-up