Mezzanine Management takes PLN 40m minority stake in Flucar

The deal sees the GP acquire a third of the shares in Flucar from founder and CEO Marek Penar, said Mezzanine Management's managing director, Przemysław Głębocki.

According to Głębocki, the GP will support potential future acquisitions and that the deal featured an option for the GP to increase its stake in Flucar at a later point, though not a majority stake.

The investment was on the lower end of the GP's Accession Mezzanine Capital III fund's remit and structured as a growth capital investment, which Głębocki said was uncommon for the fund. However, he said the transaction featured the same profile as its typical mezzanine deals: medium return and risk, downside protections and minority ownership.

Mezzanine Management's capital injection will support Flucar's capex programme of around PLN 120m, which involves investment in three large plants, one of which will treat oil and lubricants for recycling.

Głębocki said Flucar had approached Mezzanine Management with the investment opportunity through Santander branch BWBK's corporate finance team. Founder Penar had been looking for a partner to provide capital and strengthen the company's management, having run the company since its foundation. Two Mezzanine Management representatives will join the company board as part of the deal.

The GP tapped its 2011-vintage €200m Accession Mezzanine Capital III vehicle for the investment. According to documents filed with the European Bank for Reconstruction and Development, Mezzanine Management applied for and received initial approval of commitments from the bank for its fourth vehicle, which is targeting €250m – €100m less than its predecessor. Głębocki said his firm is still investing from its third fund and declined to comment on whether the firm had begun fundraising for its next vehicle.

Company
Headquartered in Katowice, Flucar is a Polish producer of lubricating oils for the automotive and industrial sectors.

Employing a staff of around 100 people, it currently operates one production plant in Poland and is in the process of building an additional facility.

According to Głębocki, the company has doubled its EBITDA over the past two years.

People
Mezzanine Management – Przemysław Głębocki (managing director).
Flucar – Marek Penar (founder, CEO).

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