Enterprise Investors to sell stake in Zelmer

The GP made a return of more than 3x its original investment, based on public figures. Zelma hired Société Générale in the summer to look for an investor to take to business on a new strategic route.

BSH made an offer for Enterprise Investors' stake and will launch a public tender offer for the remaining shares of the company following the transaction, offering PLN 40 per share, or a premium of 30% on the company's share price in November.

Previous investment
Enterprise Investors' PEF V initially backed Zelmer in 2005, investing €13m. In total, the GP invested €28.7m in the company during its IPO, which was organised by the Polish State Treasury, and in a subsequent tender offer.

Zelmer expanded during the holding period, doubling both its revenues and net profit, with export sales being the key factor driving growth. The business transformed from a production enterprise to a brand, targeting domestic and Central and Eastern European markets.

Zelmer worked at widening its product offer and optimising production, which it moved to a modern factory in 2011. The company also hired mew managers with international experience.

Company
Zelmer is a domestic appliances manufacturer targeting Central and Eastern Europe. The company employs 1,442 people and is based in Warsaw where it was founded in 1937.

In the 12 months to 30 September 2012, Zelmer recorded sales of PLN 700m and an EBITDA of PLN 74m, corresponding to a margin of 10.6%. The company is listed on the Warsaw Stock Exchange.

People
Jacek Siwicki, president of Enterprise Investors, was responsible for the investment in Zelmer.

Advisers
Vendor - Société Générale (Corporate finance); Allen Overy (Legal).
Acquirer - Crédit Agricole (Corporate finance); Greenberg Traurig (Legal).

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• Topics
• CEE
• Consumer
• Exits
• Trade sale
• Poland
• Enterprise Investors