Avallon MBO FUND II, together with the Management Group acquires Road Safety Department Zaberd Ltd - one of the leaders of the Polish market for road maintenance
Lodz based Private Equity Fund Avallon MBO FUND II, specialising in management buyout transactions on the Polish market, implements another investment with the Managers, taking over the majority of company shares.
As part of the MBO (Management Buy Out) transaction, on 30 April Avallon, together with the leader of Management Group – Mr Paweł Zawadzki (CEO) and other key members of the team signed an agreement of shares buyout from Mezzanine Management. Currently, Zaberd Ltd is comprehensively engaged in the maintenance and construction of road infrastructure. Management Group and Avallon are jointly working towards a dynamic development of the road maintenance and intelligent control systems, and Zaberd Ltd becoming a leader in the field. In the transaction process, the Fund was assisted by the Group of Lawyers -Ginckaj JGA, Morawiec, Olszewski, Stankiewicz Partnership.
The value of transaction has not been made public.
Paweł Zawadzki, ZABERD Ltd Chairman of the Board:
Since Poland joined the EU, we have been observing the changes that have taken place thanks to the EU funds . Dozens of billions of zlotys allocated for the construction of new roads contributed to the rapid growth of road infrastructure and, consequently, increased expenditure on the maintenance of the newly created infrastructure. The recent years of Zaberd activity are characterised by a careful selection of staff and preparing them for undertaking the biggest and most complicated challenges in the area. Gaining Avallon as a partner, who secures financial stability and provides support for necessary development, means that our ambitious plans are becoming fully realistic.
Robert Więcławski, Avallon’s Partner:
Zaberd Ltd is the Fund’s first investment in the sector of services related to the maintenance of roads and intelligent traffic control systems. We are consequently implementing Avallon’s strategy of “Investing with Managers.” In this case, they are the people who have worked in the company for many years, form a stable
management team with a unique and rich experience – which is crucial for us. In this relatively new sector of business in Poland, we can see a lot of potential for development. We believe that the combination of Zaberd’s new, dynamic approach with our experience will enable the company to play the leading part on the market. We do not rule out the further acquisitions in the sector.
ZABERD S.A. (www.zaberd.com.pl) – a company of a service profile engaged in road safety and comprehensive maintenance of national road conditions in winter and summer, executing work on road signs and markings, lighting, crash barriers, traffic lights, development of ITS , organising traffic replacement, etc. The company headquarters is located in Wroclaw and operating in branch offices. It has its own machinery plant, which allows for a comprehensive implementation of services throughout the country. Zaberd Ltd currently employs approximately 250 people.
Avallon MBO FUND II (www.Avallon.pl) – Zaberd Ltd is the fourth investment of the Fund, which was established in December 2012 and specializes in transactions carried out jointly with managers. This previous ones were: MPS International Ltd – a manufacturer of cosmetics, packaging and cleaning products, ORE – a leader in the field of corporate purchasing, and Velvet CARE Ltd – a manufacturer of hygiene products for everyday use. Avallon is a pioneer in management buyouts in Poland, operating in this area since 2001. The Fund investors are international financial institutions, such as European Bank for Reconstruction and Development, and the funds managed by the Swiss company Akina Partners.The Fund invests in a variety of industries, mainly in companies with a turnover of between 50 to 250 million zlotys.