Often an IPO may not be the best option for relatively young businesses or those lacking the financial track record or reputation needed to attract the general investing public. Enterprise Investors can support such early-stage growth companies. A private placement preceding a flotation can be designed to meet the company’s specific needs by providing know-how and securing implementation of best practice, thereby accelerating growth. Additionally, the presence of an experienced and patient shareholder helps consolidate the investor base.
Our investment in Zelmer was a classic pre-IPO transaction.
Zelmer is Poland’s oldest and largest manufacturer of small domestic appliances (SDA). Enterprise Investors bought a large minority stake in the business in 2005 through an IPO during Zelmer’s privatization, and immediately began transforming it from a state-owned manufacturer into a world-class company and the second largest SDA group in Central and Eastern Europe. During the investment, Enterprise Investors brought in new management, introduced new products in the mid and low price ranges and helped the company enter new markets, including Russia and Ukraine. Sales doubled during EI’s investment period, while the drive to improve profitability involved focusing on the region’s largest markets and on products with the highest growth potential, as well as on constructing a state-of-the-art manufacturing plant in Rzeszów.
Enterprise Investors sold its stake to Bosch und Siemens Hausgeräte, the largest player in the European SDA market, in 2012.