Enterprise Investors takes over Artima, the largest independent supermarket Chain in Romania

Artima Retail Investment Company SA is a retail firm established in 2001 by the Romanian businessman Florentin Banu. Between 2002 and 2004, Artima benefited from three capital infusions made by prestigious international financial institutions from Germany and the United States: DEG, SEAF Trans-Balkan Romania Fund, and SEAF CEE Growth Fund. The company operates 14 supermarkets in 13 cities of the Transylvania and Banat regions, featuring over 15,000 sq. meters of shopping facilities. Artima has made spectacular progress, reaching turnover of €32 million in 2004. The number of employees increased continuously from fewer than 300 in 2001 to 770 this year.

Enterprise Investors is the largest private equity firm in Central and Eastern Europe. Active since 1990, the company manages five investment funds with capital exceeding $1.1 billion. The funds managed by Enterprise Investors have invested more than $850 million in almost 100 companies in Central and Eastern Europe.

The Artima transaction is EI’s second investment in Romania after the funds acquired a stake in Orange Romania in 1999-2001 as part of a consortium of financial investors. In October 2004 Enterprise Investors opened an office in Bucharest as part of the firm’s regional expansion strategy. Romania is the second-largest market in Central and Eastern Europe (after Poland). The country is set to join the European Union in 2007.

Over the years, EI has developed several retail chains in Poland, including Eldorado (food retailer), Apteki Polskie (pharmacies), and Nomi (DIY retailer). EI also financed the expansion of W.Kruk and Deni Cler (jewelry and fashion) in Polish cities, and LPP (fashion retailer) across Central and Eastern Europe.

Commenting on the transaction, Mr. Dawid Walendowski, a vice president of Enterprise Investors who is responsible for this investment, said: “We are delighted to close another deal in Romania. We plan to add significant value to the company by implementing proven strategies that we have developed over many years of investing in the retail industry. The management and staff of Artima have done a great job in creating Romania’s largest independent retailer. We expect excellent results from our cooperation with Mr. Clemens Petschnikar, a well-known and highly experienced manager active on the Romanian FMCG market since 1998.”

Mr. Clemens Petschnikar, Artima’s incoming CEO and EI’s main partner in this venture, said: “The decision to take over Artima is mainly driven by our positive expectations concerning the future development of the Romanian FMCG market, and by the solid groundwork put in place by the company’s founders. We are buying a good platform for further development and are planning to strengthen Artima’s position as a regional food retailer. Our ambitious development plan includes opening up to 40 more stores between 2005 and 2009 in western Romania.”

“Last October, Enterprise Investors and Pedersen & Partners inaugurated the first MBI & MBO Club in Romania in an effort to support successful managers in the acquisition of a stake in a company. Artima is the first management buyin that we have concluded in Romania since the start of the MBI & MBO Club’s activities and we look forward to other similar successes. In all transactions, management is the key partner that will ensure the success or failure of the business,” commented Mr. Jacek Siwicki, managing partner of Enterprise Investors, who is responsible for the firm’s operations in Romania.

“After four years of hard work I am extremely happy to have closed my second deal with a major international player. Following Joe Wafers, Artima is my second successful exit. I am proud to have succeeded again and to leave behind an exceptional team of more than 700 people and a highly competitive company,” said Mr. Florentin Banu, founder and former CEO of Artima.

To conclude the deal, Enterprise Investors was advised by the law firm Radu Taracila Padurari Retevoescu (RTPR) and by Ernst & Young.