Highlights

Throughout Q3 2019, economic growth in the CEE remained solid at rates between 4-5%, far exceeding comparative growth rates observed in the EU. Consequently, penetration ratios and levels of spending in the CEE are becoming more aligned with their EU counterparts.

As for mid-market activity, downward pressure of seller price expectations and a continued strong interest from investors in the region, has meant the buyout volume remains buoyant. The number of deals recorded this quarter increased by 14% on Q3 of 2018 for the territory.

In addition to healthy buyout levels, the CEE is experiencing considerable interest from Asian investors, particularly in the real estate sector – investments in Polish real estate are at very high levels compared to the rest of Europe as a result. Additionally, a number of Korean, Chinese and Japanese players are currently undertaking due diligence on Polish companies.

Consumer, Leisure and Retail:

  • Genesis Capital has acquired a 61% stake in 11 Entertainment Group, a Hungary-based company that provides indoor family entertainment services, for an undisclosed consideration
  • KJK Management S.A, has acquired Baltik Vairas UAB, the Lithuania-based e-bike and bicycle manufacturer, from UAB LitCapital Asset Management, for an undisclosed consideration
  • Innova Capital has acquired Optiplaza S.R.L. and Optical Network, two Romanian-based optical retail chains, both for an undisclosed consideration

Healthcare:

  • Highlander Partners has acquired the Ares Group, a Romania-based medical practice, for an undisclosed consideration

Industrial Products & Services:

  • Soprema has acquired Termo-Organica, the Polish insulation products manufacturer, from Krokus, for an undisclosed consideration

TMT:

  • Play Communications has acquired 3S, the second largest data centre operator in Poland, from Enterprise Investor, for a total of zł410m
  • Abris Capital has agreed to acquire an undisclosed majority stake in Global Technical Group, a leading Romanian provider of software and security systems, for an undisclosed consideration

CEE deals by sector

Go back to DC Advisory’s European mid-market private equity round-up >