Company

Velvet CARE

The buyout of the company from the international group is possible. This management group took matters into its own hands.

Headquarters:

Klucze, Warszawa

Income (2018):

488 mln PLN

Chairman of the Board:

Artur Pielak

Year of investment:

2013

Type of transaction:

MBO

Industry:

Hygienic items

Present status:

Exited

The American company made its debut on the Polish market in 2003 when it took over a producer of hygienic materials operating under a well-known brand in Poland - Velvet. Ten years later, at a meeting of the Chechnya headquarters of Kimberly-Clark, the company decided to withdraw from Poland and sell the business.
They hired me to prepare the company for this process. The Velvet brand had huge potential. I knew that there was a great chance, and if I could afford it, I would gladly buy this company myself. The amount, however, was prohibitive. So, I looked for a partner with whom I could carry out such a buyout. That's how I found Avallon.

Artur Pielak Chairman of the Board

Effects of actions

Efficient negotiations with a corporation

Creating the basis for the development of an independent organization operating outside the structures of an international corporation: launching new credit lines, introducing a new brand logo and corporate visualization, building a purchasing department, and developing computer systems

The rapid development of the company during the fund's investment period: total number of employees increased from 320 to 530, an increase in sales from 230 million PLN in 2014 to 400 million PLN in 2017

Acquiring the position of the undisputed market leader in the main product categories

Consistent implementation of development investments - in total - in 2013-2017 approximately PLN 250 million was invested in machinery, which allowed to double production capacity and build the largest investment in the history of this company - a new paper machine