Genesis buys majority stake in HC Electronics

Harriet Matthews
15 March 2022

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Genesis Capital has acquired a majority stake in Czech Republic-based electronics manufacturing business HC Electronics.

Founders Roman Opa, Ivo Římal and Petr Zamouřil are reinvesting for a significant minority stake in the company, according to a statement from Genesis Capital.

The responsibilities previously held by the company's departing founders (Libor Hrubeš and Jan Vejvoda) will be passed onto the next generation of the company's management team members, according to the same statement.

The GP is deploying equity via Genesis Growth Equity Fund I (GGEF I), which held a final close in December 2020 on EUR 40m. The fund invests in growing Czech Republic and Slovakia-based businesses, with a focus on technology startups. It targets companies with revenues of up to EUR 15m and EBITDA of up to EUR 2m, making equity investments of EUR 1m-4m per deal and targeting businesses with enterprise values of up to EUR 10m, according to Unquote Data.

The fund has now made three investments to date, according to Unquote Data. It acquired digital advertising firm R2B2 and home healthcare services and medical equipment provider Home Care Promedica in August 2020. The fund aims to back up to 12 companies.

The GP is currently on the road for its next flagship fund, Genesis Private Equity Fund IV, which will be the firm's sixth fund. The GP aims to raise EUR 150m and had raised EUR 101m in its first close as of August 2021, as reported. The fund will deploy larger equity tickets than its predecessor (EUR 5m-20m versus EUR 4m-10m in GPEF III) and can allocate up to 30% of its capital to deals beyond the Czech Republic, versus 20% in its previous flagship fund, managing partner Ondrej Vicar told Unquote in August 2021.

Company
Founded in 1992 and headquartered in Hradec Králové, HC Electronics provides electronics manufacturing services, including for printed circuit board (PCB) assembly, focusing on small and medium series. Its customer base is located in Centra and Western Europe. It employs around 130 staff and posted revenues of almost EUR 7m in 2021.

People
Genesis Capital – Marek Hoščálek (partner); Jiří Beneš (managing partner).
HC Electronics – Libor Hrubeš, Roman Opa, Ivo Římal, Jan Vejvoda (co-founders); Petr Zamouřil (co-founder, CEO).

Advisers
Equity – JŠK (legal); Deloitte (financial due diligence, tax).
Vendor – Imap (corporate finance); PPS Advokáti (legal).