Another Exit of Avallon. The Fund Sells EBS - the Security Industry Company
- During 3.5 years, with the support of Avallon, the company has intensively been developing new products, e.g. new versions of alarm systems and GSM communicators operating in 4G technology, which EBS plans to be selling to the American market.
- The buyer is UAB Sevenways Group - an investment holding company from Lithuania with entities from various areas in its portfolio, including real estate and energy sectors.
Avallon MBO, celebrating its 20th anniversary, has sold its entire majority stake from EBS. At the end of 2017, as part of Avallon MBO Fund II, the fund acquired 70 percent shares of the company, leaving a significant stake in the hands of its founders. Now, after 3.5 years of cooperation, following the planned strategy, Avallon exits the investment. Over this time, EBS has intensively been working on the development of its products, including a new version of the alarm systems and GSM communicators, with which the company intends to commercially enter the US market in the next few months.
- Our goal was to focus on the development of new products and solutions and establishing contacts with new foreign contractors. Today we can see that this plan has proved to be successful as the company, withits offers, is entering new markets, for example the US one - says Krzysztof Kuźbik, partner at Avallon responsible for the transaction. - This is the second of Avallon's announced exits this year and not the last one. The following months of this year are going to be very intense for us, both in terms of exits as well as of new transactions.
The new buyer of EBS is UAB Sevenways Group. It is a Lithuanian holding company that invests in enterprises from various areas, including real estate and energy industries, the last one including alternative energy. Last year, EBS and Sevenways established a JV company, which aims to develop solutions in remote monitoring for the work of security guards and officers.
- Thanks to the new investor, we get a lot of support in order to further develop and widen access to foreign distribution. Together with its stake in EBS, the Sevenways Group purchases our technology and production facility. Certainly, the tightening of cooperation will translate into creating business synergies and will enable the implementation of further, ambitious challenges - comments Krzysztof Stalewski, President of the Management Board of EBS.
EBS is a technology company with its own production plant in Ełk, operating mainly in the security systems industry. For over 30 years, it has been offering innovative solutions in the field of GSM / GPRS and RFID technology. The company has a well-developed distribution network all over the world. It works with the largest security agencies and monitoring centres in Poland (including Juwentus, Impel, Konsalnet, Securitas, Solid), GSM network providers (Orange, Polkomtel, T-Mobile) as well as distributors and integrators (Sareme, Johnson Controls, Honeywell, Alpha System, CSS, Elvey).
Currently, there are 8 companies in Avallon's portfolio. The first investment carried out as Avallond Fund III was Clovin - a company dealing in the production of cleaning products. Currently, the fund's portfolio includes two companies from the food industry - Ceko and Wosana, Stangl Technik, providing installation services, as well as MPS International - a manufacturer of cosmetics and packaging, the EDC Expert marketing company, the Marketplanet purchasing platform and Novo Tech, dealing in polymer processing.