Horizon partially exits Purcari Wineries in Bucharest listing

Horizon realised a 3.2x gross cash-on-cash return on the sale of its shares, and remains an active shareholder with a 22.7% remaining stake.

The final offer price was RON 19 per share, valuing the total offering of 49% of the company's shares at around RON 186m (€40m). Institutional investors bought 90% of the shares, with 10% allotted to individual investors.

At the time of writing, shares were trading at RON 19.75 apiece.
The offering was four times oversubscribed by retail investors.

With the additional funding, the winery intends to further consolidate the wine market, which it sees as fragmented in Romania and Moldova.

Horizon's Emerging Europe Growth Fund (EEGF) was launched in June 2006 with a target size of $132m. The fund's remit is Ukraine, Belarus and Moldova.

Western NIS Enterprise Fund, a US government initiative to support Ukrainian and Moldovan development, was the cornerstone LP in EEGF, with a capital commitment of $25m. 

The GP's latest fund, EEGF III, was announced in June 2016.

Company
Established in 1827 in modern-day Moldova, Purcari operates 1,000 hectares of vineyards and four production platforms in Romania and Moldova. It owns two premium wine brands in Romania.

Purcari posted an EBITDA margin of 33% for the first nine months of 2017, up 55% compared with the same period in 2016. Meanwhile, its net income margin rose to 23%, or up 55% versus the same period last year. 

The company said it runs a low-cost base and with an abundant grape supply to build its business.

People
Horizon Capital – Lenna Koszarny (founding partner, CEO).
Purcari Wineries – Victor Bostan (founder, CEO).

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