Enterprise Investors acquires Komfort
Warsaw, 6 February 2007 — Polish Enterprise Fund V (PEF V) and Polish Enterprise Fund VI (PEF VI) – private equity funds managed by Enterprise Investors (EI) – have signed an agreement to purchase 100% of the Komfort retail chain. The transaction will take the form of a buyout, with half the transaction amount financed with acquisition debt provided by Bank Zachodni WBK. The deal is subject to the usual approvals required by Polish law.
Komfort is Poland’s largest network of stores selling wall-to-wall carpet and rugs as well as laminate and hardwood floors. Established in the early 1990s and based in Szczecin (north-west Poland), the company now has a network of more than
100 stores throughout Poland. Over the last few years Komfort has steadily improved its market position and profitability,
in 2006 achieving sales of around PLN 340 million (approx. €90 million) and net profit close to PLN 20 million (approx. €5 million). The company is now the market leader in its sector in Poland.
“Komfort’s products are proving extremely popular with Polish consumers,” said Agnieszka Kowalska, a partner at Enterprise Investors. “We plan to realize the company’s substantial potential for rapid growth by further expanding its store network. In our opinion this will give Komfort a good chance of growing dynamically not just in Poland but potentially also in other CEE countries. Our probable exit route will be through an IPO within a few years.”
Romuald Stachowiak, president of the Komfort store network’s owner up till now, commented: “As owners, we had considered taking Komfort public on the Warsaw Stock Exchange. However, the sale of the network to Enterprise Investors turned out to be the best possible choice, and one that will guarantee Komfort’s continued rapid growth thanks to the support of such an experienced private investor.”
Enterprise Investors has been active since 1990 and is the largest private equity investor in Central and Eastern Europe. The firm manages six funds totaling €1.6 billion. To date, these funds have invested €0.9 billion in 103 companies from a range of sectors and have exited 87 investments with total proceeds of over €1.2 billion.
Enterprise Investors has built up significant experience as the leading private equity player in Poland’s retail sector. Since 1993
EI has developed several retail chains in Poland, including Eldorado (Stokrotka and Groszek supermarkets) and Apteki Polskie (pharmacies), and has financed the expansion of the W.Kruk and Deni Cler exclusive jewelry and fashion salons.
As an investor in LPP, Enterprise Investors contributed to the introduction of the Reserved and Cropp fashion labels in CEE countries. EI also owns 100% of Nomi, a chain of DIY stores present throughout Poland. In the last two years EI-managed funds acquired Nay, a chain of stores in Slovakia selling white and brown goods, as well as the Romanian food retailer Artima.