Expansion capital is a form of financing that allows for the growth and expansion of a company. The capital may be used to finance the acquisition of a competitor or increase production capacity, to develop and market the product, or to provide additional working capital.
Enterprise Investors offers not just capital but also knowledge, experience and partnership in the process of making key business decisions. Unlike banks, we do not give loans but invest our capital directly, and thus share the risk of the investment with the entrepreneur. What sets us apart from industry buyers is that we are never in direct competition with the entrepreneur. When we invest in a business, we undertake to support the current owners and management board in realizing their company's development strategy. Unlike stock market investors, when reaching decisions we do not rely solely on the current state of the market, preferring to take the longer-term view.
Our funds have provided expansion financing to many successful firms in the CEE region, most notably W.Kruk, X-Trade Brokers, Dino, Wento and Macon. Our venture fund recently financed the development of Dystrybucja Polska, PBKM and Webmedia.
MACON
Established in the 1960s and privatized in the 1990s, Macon is the leading construction materials producer in Romania.
Enterprise Investors decided to acquire 100% of Macon in 2006. We believed that combining Macon’s good market position and growth prospects with EI’s unique expertise in building value, corporate
governance and management would strengthen Macon’s position and help it become a market leader. Macon’s financial results soon proved that assumption to be right. Thanks to effective cooperation with Enterprise Investors and especially following Macon’s complex restructuring, its sales increased by 30% and net profit grew by 70% in just one year.
Macon’s further development strategy demanded the acquisition of a competitor. We found Simcor Group to be the best choice, and EI provided equity financing to Macon to acquire a majority stake. The €53 million transaction secured a leading position for Macon on its market.
"Combining the market potential of Macon and Enterprise Investors' unique experience in effective management, corporate governance and building company value has enabled us to become the clear market leader. The acquisition of Simcor Group financed with the capital provided by EI-managed funds was the strongest contributing factor in this process."
Marius Martin, President of Macon