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7 November 2013

Enterprise Investors acquires 100% of shares in Danwood

Warsaw, 7 November 2013 — Polish Enterprise Fund VII (PEF VII), a private equity fund managed by Enterprise Investors, has purchased 100% of shares in Danwood from Budimex SA. Danwood is one of the largest and most dynamically developing European companies specialized in the production of prefabricated timber houses. The value of the transaction is EUR 57 million.

Danwood produces prefabricated houses using modern technology that is well established in Germany and Scandinavia. The company’s official seat, production plant and design and research department are located in Bielsk Podlaski and Białystok. In 2012 Danwood built 565 houses, generating revenue of EUR 76 million. The company sells 91% of its output to Germany, the biggest European market for ready-made houses, where it is the dominant player. Danwood controls all key areas of the value chain, from design through production and sale of prefabricated elements, construction and finishing.

“We see considerable further growth potential for Danwood, which has already succeeded in building its position on Europe’s most demanding markets with a technologically advanced product. We believe the company will be able to continue its dynamic development with our support,” said Sebastian Król, a partner at Enterprise Investors, who is in charge of this investment. “The key to Danwood’s success is a very competent management team that will work with us to build the company’s value,” he added.

Commenting on this market segment, Danwood’s president Jarosław Jurak said: “Prefabricated houses are increasingly popular throughout Europe. They are environmentally friendly, energy efficient and economical, and their construction takes less time and is cheaper than in the case of traditional technology.”

The company plans to focus on organic growth and building its position as leader on key markets. “We plan to reinforce our position in the remaining German-speaking countries, namely Austria and Switzerland. We will also use the knowledge and experience gained in Germany and Scandinavia to build more and more houses in Poland.” said Mr. Jurak.

Enterprise Investors is one of the largest private equity and venture capital firms in Central and Eastern Europe. Active since 1990, the firm has raised eight funds with total capital exceeding EUR 2 billion. To date the funds have invested EUR 1.6 billion in 131 companies across a range of sectors and exited 102 companies with total gross proceeds of EUR 2 billion.

For further information please contact:
Sebastian Król, Partner
Anna Czywczyńska, Public Relations Consultant
tel.: +48 22 458 8500