Mid Europa exits PKL to Polish Development Fund

Deal marks the end of a five-year holding period for Mid Europa, which took the firm private in order to enter the Polish leisure and tourism sector. It acquired 99.8% of PKL via a new holding company, PKG, funding the deal via its Mid Europa IV vehicle.

According to the GP, the transaction presents the largest private equity exit in the mountain leisure and tourism sector in Poland.

Polish Development Fund is a state-owned financial group set up to support the local economy by investing in regional businesses.

Previous funding
Mid Europa wholly acquired PKL for PLN 215m in May 2013. The investment was made via its holding company PKG, controlled by Mid Europea Fund IV, which held a final close on €800m in August 2014.

PKL acquired ski lift business Kolej Gondolowa Jaworzyna Krynicka in September 2013, with Mid Europa injecting a new round of capital to enable PKL to make the acquisition. The GP implemented a consolidation strategy in the mountain tourism market in Poland. Jaworzyna Krynicka was acquired from Polish insurance company Powszechny Zaklad Ubezpieczen and Polish bank PKO Bank Polski.
 
Company
PKL was established in Zakopane in the south of Poland in 1935. The company is the country's oldest provider of cable cars, ski lifts and ski slope services, and is present mainly in the Tatra mountain range.

People
Mid Europa – Dominika Kozłowska-Łogin (principal).
Polskie Koleje Linowe – Janusz Ryś (CEO).

Advisers
Equity – Rothschild (financial due diligence); CMS (legal); PwC (corporate finance); EY (commercial due diligence).

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• Topics
• Exits
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• Mid Europa Partners