Enterprise Investors finalizes the acquisition of Komfort
Warsaw, 3 April 2007 — Polish Enterprise Fund V (PEF V) and Polish Enterprise Fund VI (PEF VI) – private equity funds managed by Enterprise Investors (EI) – have finalized the purchase of the Komfort retail chain. PEF V and PEF VI have bought out 100% of the Komfort retail chain for a total of €64 million, with half the transaction amount financed with acquisition debt provided by Bank Zachodni WBK.
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 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 operating profit close to PLN 20 million (approx. €5 million).
The company is now the market leader in its sector in Poland.
Enterprise Investors decided to strengthen the existing management team by bringing in a seasoned Polish retail professional with 15 years of industry experience as executive chairman. EI plans to further expand the store network not just in Poland
but potentially also in other CEE countries. Komfort seems a good candidate for flotation on the Warsaw Stock Exchange
in a few years.
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 €1 billion in 104 companies from a range of sectors and have exited 88 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. EI owned 100% of Nomi, a Polish chain of DIY stores. As an investor in LPP, Enterprise Investors contributed to the introduction of the Reserved and Cropp fashion labels in CEE countries. 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.
EI’s advisors to this transaction were Gide Loyrette Novel and Ernst & Young.