Many of the private companies established in Central and Eastern Europe in the early 1990s had the opportunity to develop rapidly. Their founders have built businesses that now represent significant value and hold leading positions on their markets. The private equity funds managed by Enterprise Investors are keen to invest in these types of companies because of their potential to develop further.
By selling 100% or close to 100% of their shares, the owners of these companies harvest their investment. They can do so for a variety of reasons – to find a successor before retiring, realize new business ideas, or devote their time to personal interests or charitable activities.
Buying such a significant stake in companies with a high market value requires a greater capital commitment. This is why we use bank debt to finance so-called leveraged buyout transactions. The use of bank debt creates the potential to generate higher returns for the buyer and can make the transaction more attractive for the seller.
We completed one of the first buyout transactions leveraged with bank debt in this part of Europe. Our track record in securing debt and building a financial structure for leveraged buyout transactions is unparalleled on the CEE private equity market. Our most significant leveraged buyout transactions to date include the acquisitions of Nomi, Nordglass, Sklepy Komfort and Harper Hygienics as well as the purchase of a controlling stake in DGS.
NORDGLASS
Nordglass is one of Europe’s largest manufacturers of automotive windshields. In 2007 our fund acquired 100% of the company from its founders in a leveraged buyout.
Established in 1991 in Poland, the company operates two modern plants located near the Baltic coast that produce windshields for almost all models of passenger cars, trucks, buses and trains. Nordglass also has a nationwide windshield distribution and installation network. The firm has gained its unique position on the Polish and European markets thanks to the high quality of both its products and its customer service.
The management team that took over in 2007 has systematically implemented the company’s growth strategy. As part of this approach Nordglass has established its own sales organization in the key markets of the European Union, including Germany, France and the United Kingdom. By dynamically increasing sales in its own fitment centers, mNordglass is also helping raise professional standards across Poland’s windshield replacement market. The company is servicing the bank loan used for this transaction in line with the repayment schedule.
"Since its inception, Nordglass has applied the most advanced production technologies and a flexible approach to customer needs. We built a company that is admired by foreign competitors and that became an attractive acquisition target for such a reputable investor as EI. This collaboration has allowed us to double revenues in only a few years and gain EU markets at the expense of the global giants in the industry."
Grzegorz Łajca, President of Nordglass