Enterprise Investors buys out Gamet, the largest manufacturer of furniture accessories in Poland
Warsaw, 7 July 2005 — Polish Enterprise Fund V (PEF V) – a private equity fund managed by Enterprise Investors (EI) – acquired 100% of Gamet, Poland’s largest manufacturer of furniture accessories, in a management buyin (MBI). The €21.5 million transaction is financed with €15.4 million in equity from PEF V and €6.1 million of senior debt.
Gamet Sp. z o.o., located in Toruń, Poland, is a major producer of furniture accessories with a well recognized brand on the Polish market. The company was established by a private entrepreneur in 1987 and was acquired by TDA (a private equity fund) in 2002, which in turn sold Gamet to EI.
Gamet produces and distributes furniture accessories and hardware including handles, knobs, legs, and drawer slides. Gamet’s market share in Poland is roughly 30%, and it exports one-third of its production, chiefly to Germany, Russia, and Ukraine. The company sells a high proportion of its products to furniture manufacturers and the balance to wholesalers and DIY chains. Sales in 2004 were PLN 103 million (€26 million).
Poland is the world’s #12 furniture producer and #5 exporter. The total value of Polish furniture exports in 2003 was €3.4 billion.
“Enterprise Investors has identified candidates for key management positions who have extensive industry experience and contacts among targeted customers. We plan to invest another €5 million in new production facilities in 2005/2006. Both these developments will speed the company’s growth,” said Jacek Woźniak, a partner at Enterprise Investors and leader of the Gamet transaction.
Krzysztof Pióro, the new president of Gamet, added: “Gamet has the opportunity to grow on the domestic market and expand to other EU markets. It is also well positioned to benefit from the substantial growth in furniture manufacturing in Russia and Ukraine, which is projected to continue at an annual rate of 15%.”
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 $900 million in almost 100 companies in Central and Eastern Europe, and have exited 75 investments at superior rates of return.
EI leads the buyout market in Central and Eastern Europe. Since 2003, it has invested €234 million of equity in buyout transactions representing a total value of €687 million, including debt financing and co-investments. As part of its commitment to further developing the buyout market in CEE, Enterprise Investors sponsors the MBI & MBO Club, the only organization of its kind in the region.