23.06.2015
Avallon MBO FUND in cooperation with a manager from India aquires Novo Tech Sp. z o.o. – global producer of goods based on a technology of processing polymers
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Avallon MBO FUND in cooperation with a manager from India aquires Novo Tech Sp. z o.o. – global producer of goods based on a technology of processing polymers

Avallon MBO FUND II carries out another, already the fourth, investment concerning purchase from a foreign owner of a subsidiary company, taking over 100% of shares in the Novo Tech company in Kostrzyn. Novo Tech formed the European part of a Hindi concern: Time Technoplast specialising in production of packagings into the markets of India and countries of Southeast Asia.
The mother company’s withdrawal from Poland resulted from a decision on concentration of activities on the main business area on Asian markets.

Within IBO transactions, Avallon, in close cooperation with a previous manager governing the company – Mukesh Patani, signed on 5 June 2015 a contract for repurchasing shares from the international concern.

The transaction also includes purchase of shares in two subsidiary companies operating in Romania and Belgium. The company’s products are offered under known brands:with regard to spray‑suppression shields for large and medium trucks – Clear Pass® i 3S®, and as regards the segment of entrance mats they are offered under the following brands – AstroTurf®, NovoTech®, and DuroTurf Contract®.

The company has a modern production plant located in a special economic zone in Kostrzyn on the Oder. It is an active exporter sending approximately 80 % of its production onto foreign markets. The company’s strategy envisages further development of export and introduction of new products into its offer. The fund will also actively analyse the acquisition potential in order to strengthen the company’s position on the market.

Novo Tech cooperates with known European producers of semitrailers and trailers such as e.g: Daimler, Ford, Scania, Volvo and Schmitz‑Cargobull and as regards entrance mats with the IKEA concern and other significant networks of the DIY industry (do it yourself). Value of the transaction was not made public.

On the part of the fund the transaction was operated by Squire Patton Boggs chancellery.On the part of the seller DC Advisory was a financial counsellor and Deloitte Legal was a legal adviser.

Mukesh Patani, President of the Management Board of Novo Tech Sp. z o.o.: 
Thanks to the Avallon fund I can still participate in development of the company. I have been associated with it from the beginning of its operation in Poland. The company has both enormous potential in its current area of activities and a possibility of entering into new niche applications. Common implementation of these activities together with the fund will certainly enable us to achieve success in a perspective of several years.

Mirosław Janicki, Avallon MBO FUND: 

Novo Tech in a leading producer from the sector of polymer processing. Good quality of products appreciated by clients and motivated management staff are the factors which will certainly make it easier for us to further develop the company.

Mirosław Janicki, Avallon MBO FUND: 
The company attracted our attention with its position on the market and financial results. It is rare that in Poland there is an opportunity to invest in a global leader. Beyond a doubt Novo Tech has potential to maintain and strengthen the leading position on global markets.

Novo Tech Sp. z o.o. (www.novo‑tech.eu) – deals with production and sale of products based on a technology of polymers, forming an offer for growing sectors of everyday use products and car parts.

The company’s registered office is in Kostrzyn. Novo Tech Group employs 150 people.

Avallon MBO FUND II (www.Avallon.pl) – Novo Tech is the sixth investment of the fund established in December 2012 specialising in transactions carried out together with managers.
Previous ones: EMERSON DC – leader of promotion and transaction mailing, ZABERD S.A. – Polish leader of the road maintenance market, MPS International Ltd Sp. z o.o. – producer of cosmetics, packagings and cleaning supplies, ORE S.A. – leader in the range of corporate purchasing and Velvet CARE Sp. z o.o. – producer of hygiene articles of everyday use. Avallon is a pioneer of the management buyout market in Poland and has been operating in this area since 2001. E.g. the following international financial institutions are investors of the Fund: The European Bank for Reconstruction and Development and funds managed by Akina Partners – a Swiss company. The Fund invests in different sectors, mainly in companies with turnover from PLN 50 to 250 million zloty.

Avallon MBO FUND in cooperation with a manager from India aquires Novo Tech Sp. z o.o. – global producer of goods based on a technology of processing polymers

Avallon MBO FUND II carries out another, already the fourth, investment concerning purchase from a foreign owner of a subsidiary company, taking over 100% of shares in the Novo Tech company in Kostrzyn. Novo Tech formed the European part of a Hindi concern: Time Technoplast specialising in production of packagings into the markets of India and countries of Southeast Asia.
The mother company’s withdrawal from Poland resulted from a decision on concentration of activities on the main business area on Asian markets.

Within IBO transactions, Avallon, in close cooperation with a previous manager governing the company – Mukesh Patani, signed on 5 June 2015 a contract for repurchasing shares from the international concern.

The transaction also includes purchase of shares in two subsidiary companies operating in Romania and Belgium. The company’s products are offered under known brands:with regard to spray‑suppression shields for large and medium trucks – Clear Pass® i 3S®, and as regards the segment of entrance mats they are offered under the following brands – AstroTurf®, NovoTech®, and DuroTurf Contract®.

The company has a modern production plant located in a special economic zone in Kostrzyn on the Oder. It is an active exporter sending approximately 80 % of its production onto foreign markets. The company’s strategy envisages further development of export and introduction of new products into its offer. The fund will also actively analyse the acquisition potential in order to strengthen the company’s position on the market.

Novo Tech cooperates with known European producers of semitrailers and trailers such as e.g: Daimler, Ford, Scania, Volvo and Schmitz‑Cargobull and as regards entrance mats with the IKEA concern and other significant networks of the DIY industry (do it yourself). Value of the transaction was not made public.

On the part of the fund the transaction was operated by Squire Patton Boggs chancellery.On the part of the seller DC Advisory was a financial counsellor and Deloitte Legal was a legal adviser.

Mukesh Patani, President of the Management Board of Novo Tech Sp. z o.o.: 
Thanks to the Avallon fund I can still participate in development of the company. I have been associated with it from the beginning of its operation in Poland. The company has both enormous potential in its current area of activities and a possibility of entering into new niche applications. Common implementation of these activities together with the fund will certainly enable us to achieve success in a perspective of several years.

Mirosław Janicki, Avallon MBO FUND: 

Novo Tech in a leading producer from the sector of polymer processing. Good quality of products appreciated by clients and motivated management staff are the factors which will certainly make it easier for us to further develop the company.

Mirosław Janicki, Avallon MBO FUND: 
The company attracted our attention with its position on the market and financial results. It is rare that in Poland there is an opportunity to invest in a global leader. Beyond a doubt Novo Tech has potential to maintain and strengthen the leading position on global markets.

Novo Tech Sp. z o.o. (www.novo‑tech.eu) – deals with production and sale of products based on a technology of polymers, forming an offer for growing sectors of everyday use products and car parts.

The company’s registered office is in Kostrzyn. Novo Tech Group employs 150 people.

Avallon MBO FUND II (www.Avallon.pl) – Novo Tech is the sixth investment of the fund established in December 2012 specialising in transactions carried out together with managers.
Previous ones: EMERSON DC – leader of promotion and transaction mailing, ZABERD S.A. – Polish leader of the road maintenance market, MPS International Ltd Sp. z o.o. – producer of cosmetics, packagings and cleaning supplies, ORE S.A. – leader in the range of corporate purchasing and Velvet CARE Sp. z o.o. – producer of hygiene articles of everyday use. Avallon is a pioneer of the management buyout market in Poland and has been operating in this area since 2001. E.g. the following international financial institutions are investors of the Fund: The European Bank for Reconstruction and Development and funds managed by Akina Partners – a Swiss company. The Fund invests in different sectors, mainly in companies with turnover from PLN 50 to 250 million zloty.

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