Avallon MBO FUND II partners with the Genesis FUND to acquire EQOS Energie’s Polish and Czech operations
Avallon MBO FUND II and Czech-based Genesis Private Equity Fund III (GPEF III) team up to acquire EQOS Energie Polska Sp. z o.o. and EQOS Energie Česko spol. s r.o.
Both companies have previously been part of the international EQOS Energie Group, one of the leading providers of services in comprehensive technical infrastructures in Europe, backed by the German-Swedish private equity firm Triton. Upon transaction closing, the Czech and Polish companies will operate under a new brand Stangl Technik. For Avallon, the transaction marks its tenth investments and is the first deal implemented in synergy with another private equity fund.
The transaction has been undertaken as a historically first co-investment of the Polish private equity firm Avallon and the Czech private equity house Genesis, through the firms’ latest investment vehicles – Avallon MBO Fund II and Genesis Private Equity Fund III, respectively. The decision to exit the Czech and Polish markets is part of the EQOS Energie Holding’s long-term strategy to focus on its core business, which includes energy, telecommunications and transport infrastructures. In comparison, the Holding’s divisions in the Czech Republic and Poland were historically fully concentrated on technological and building services in their respective geographical markets.
“Our subsidiaries in the Czech Republic and Poland have historically focused on the business lines outside of EQOS Energie Group’s long-term strategy. We were therefore considering their sale, looking for a partner that would be able to provide sufficient support for the two companies for their future development. We are pleased to see the success of the transaction; both of the companies now have excellent starting-line conditions for their dynamic growth and expansion,” concludes Eric Mendel, Chief Executive Officer of EQOS Energie.
Piotr Miller, a Partner at Avallon, comments on the transaction: “In the management team, we see highly skilled and experienced managers who are strongly motivated to further develop the Companies. We believe the transaction gives the two Companies a major stimulus for further development and growth. Teaming up with Genesis, we have joined a local expert who has proven to be a solid partner throughout the investment process. We look forward to this cooperation.”
“The acquisition of EQOS Energie’s Polish and Czech operations in partnership with Avallon marks GPEF III’s fifth investment over the past 12 months, representing a record investment pace. This transaction also fulfils our vision of GPEF III expanding its region of operation beyond its traditional core markets of Czech Republic and Slovakia,” comments Alexander Kosovský, Investment Manager at Genesis Capital, which is a local investment advisor to Genesis private equity funds.
“We are delighted to see that experienced managers are staying onboard. Their extensive experience in the sector and exceptional track-record with the Company have been of great importance to us” adds Alexander Kosovský.
“As the Companies__’ managers who have been onboard ever since their foundation, we see this transaction as a new challenge. We have developed EQOS Energie in Poland and EQOS Energie in the Czech Republic for almost eight years and we have a very clear vision of their future direction. Both in the Czech Republic and in Poland, our Companies have developed a strong market position with a stable customer base, which we want to further build upon. I am confident the combination of our expertise with the support of our new partners in Avallon and Genesis will open a more successful stage for the Companies under the new name Stangl Technik” says Martin Horák, CEO of the group.
The closing of transaction will take place upon the receipt of approval of the President of The Polish Antimonopoly Authority.
About EQOS Energie Holding S.à r.l.
EQOS Energie Holding S.à r.l. acts as a strategic management holding. It defines common values, targets and strategies for the entire group of companies. The company’s headquarter is in Foetz, Luxembourg. EQOS Energie is represented Europe-wide with more than 1,400 employees at over 20 sites in 4 countries. The service company specializes in communication technology, railway, energy technology and overhead line. Current EQOS Energie news can be found at www.eqos-energie.com/press.
Avallon is an independent Polish company that manages private equity funds. Avallon Management Company has years of experience in the execution of transactions together with managers – Management Buyouts (MBOs). Since 2001 it has participated in 100 MBO transactions as an adviser or equity investor and is considered a pioneer of this market in Poland. Avallon Partners have been involved in the area of capital investment since 1993. Avallon MBO Fund II has been the second fund launched by Avallon and amounts to the size of EUR 109 million. Investors of Avallon MBO FUNDd II are international institutional investors. Currently Avallon’s funds hold equity stakes in the following companies: Velvet Care, Wosana. EBS. Marketplanet, MPS International, EDC Experts Direct Communication, Zaberd, Novo Tech, Plasma System, Medort, Fiten and Ceko. For more information, please visit: www.Avallon.pl/en/
About Genesis Capital
Genesis Capital provides advisory services to private equity funds offering access to financing for growth and development of small and medium-sized companies in the Czech Republic and Slovakia. Since its foundation in 1999, Genesis Capital has provided consultancy to four private equity funds with a cumulative size exceeding EUR 170 million. These funds supported about 50 firms, having invested over CZK 3 billion. Many of those firms became leaders in their respective fields also thanks to their cooperation with Genesis. The current fund, Genesis Private Equity Fund III (GPEF III), with the size of over EUR 80 million has been actively investing since 2015. Similar to its predecessors, GPEF III focuses on investments into small and medium-sized enterprises in the Czech Republic and Slovakia, with the option to allocate part of the resources also to direct investments in Poland, Hungary and Austria. Investors in GPEF III are mostly local and international institutions and investment firms such as the European Investment Fund (EIF), Česká spořitelna (member of Erste Group), Amundi Czech Republic (member of international group Amundi), Kooperativa pojišťovna and Česká podnikatelská pojišťovna (both members of Vienna Insurance Group), a Finnish fund-of-funds firm eQ Private Equity, a pension fund of a renowned global company, and a Czech family office. Currently, the Genesis funds hold shares in the following companies: KS Klima-Service, GTH catering, Aranea, 3070, Quinta-Analytica, POS Media, HP Tronic/Datart, D2G and Sanborn.
For more information, please visit: www.genesis.cz/en