Genesis Capital completes Roltechnik trade sale

The deal sees German construction components and systems group Roth Industries acquire Genesis Capital's 90% stake in Roltechnik, as well as the balance held by management, which will follow the company to its new owners.

Genesis partner Radan Hanzl told unquote" the exit falls into the lower mid-market size bracket and provided "good" returns for the GP, though he declined to share any specific figures.GPEF acquired Roltechnik through a succession driven MBO from the company's founders via Genesis Private Equity Fund I (GPEF I) in January 2008. The fund invested alongside German private equity house Invest Equity, with the Czech GP taking a 50% stake.

After Genesis raised its second fund in 2009, over the course of its investment in Roltechnik, GPEF II acquired GPEF's stake and Invest Equity's, bringing its shareholding to 90%.

Having acquired the company in 2008, Hanzl said the investment had been a challenge for Genesis due to the global financial crisis taking hold almost immediately after the buyout.

The decline in the global construction market - and by extension, the countries in which Roltechnik operated - was a major challenge for Genesis, and keeping the company in a comfortable financial position was the key priority for the first three years of ownership, Hanzl said.

At the time, Roltechnik was active in around 10 countries and as such, the downturn in demand for its product hit different markets at different times, rather than all at once. Roltechnik's core markets were and remain the Czech Republic and Slovakia, but Genesis also embarked on a strategy of geographic diversification following the first few years of the financial crisis, according to Hanzl.

The company expanded its sales into Western Europe, strengthening production for high-end western European brands in Germany, Austria and Switzerland, Hanzl said. This expansion saw it supplying components and products to other companies, including its future acquirer Roth Industries. It also launched its own production line for acrylate shower bases.

Further expansion of the production lines is expected to take place under Roth's ownership.

Following the exit for the GP's Genesis Private Equity Fund II, around half of the fund portfolio remains unrealised, and Hanzl said the firm expects several more years of runtime for the vehicle.

Company
Founded in 1991, Roltechnik is a manufacturer and distributor of sanitary elements such as bathtubs, shower stalls, bases and water massage equipment.

The company has manufacturing facilities in Třebařov and Červená Voda, and distributes its products in more than 20 European countries.

People
Genesis Capital – Radan Hanzl (partner), Jan Tauber (managing partner).
Roth Industries – Matthias Donges (CEO).
Roltechnik – Jiří Šejnoha (CEO)

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