The owners of the respective companies have agreed to combine DATART, one of the biggest retail entities in the Czech Republic, with HP TRONIC, the operator of the Euronics retail chain and owner of the Kasa.cz and Hej.sk e-shops. The newly created structure will represent both companies, which have been operating separately to date, on the retail market. The structure will receive a capital contribution from Genesis Private Equity Fund III, which will gain a material minority share.
HP TRONIC acquired a 20% share in DATART in 2014. Since the planned merger will result in a change of control in terms of the merger regulation, the Office for the Protection of Competition in the Czech Republic and the Antimonopoly Office of the Slovak Republic will be notified about the planned project in the upcoming days. Until both of the regulators approve it, the merger will not be realised.
Daniel Večeřa, the CEO of HP TRONIC Group and future Chairman of the Board of Directors, comments on the plan: “The intended merger will create a subject on the Czech and Slovak markets with revenue in excess of CZK 15 billion per year and a high-quality chain of more than 130 specialised electronics shops that are visited by more than 22 million customers annually. The objective is to set up a stable, efficient and profitable subject with a market position reaching up to 20% on the Czech and Slovak markets. While this will be rather a demanding project, I believe that we will manage it well, not least because both DATART and HP TRONIC share a customer care philosophy based on the same values.”
Pavel Bádal, CEO and Chairman of the Board of Directors at DATART, said about the agreement: “Datart is in excellent shape. The results it achieved in the last three years have been the best over the period of the last eight years. We are growing and opening new shops. Providing the best products and services to our customers will remain our number one priority.”
“We are honoured to have the Genesis Private Equity Fund III participating in a consolidation story that ends with the formation of a strong player on the consumer electronics market,” says Ondřej Vičar, Partner at Genesis Capital, the advisor to the Genesis fund. “Our analyses show that the macroeconomic situation is favourable, with the expected growth of consumer demand in the upcoming years and the current trends on the consumer electronics market favouring consolidation. The newly formed entity, which will operate in Slovakia and Poland in addition to the Czech Republic, will achieve a size comparable with the biggest regional players in the field.”
No additional information will be released until the Office for the Protection of Competition in the Czech Republic and the Antimonopoly Office of the Slovak Republic have approved the merger. The owners have also agreed not to comment on questions regarding the individual entities’ respective shares.
Media contact: Martina Žáčková, HP TRONIC spokesperson, firstname.lastname@example.org
About DATART INTERNATIONAL
DATART INTERNATIONAL is a leading consumer electronics retailer. The company has been operating in the Czech and Slovak markets since 1990. It has operated its own e-shop since 2005. The chain currently consists of 46 shops, 34 of which are located in the Czech Republic and 12 in Slovakia. The company employs 1,200 people and has its own distribution centre. DATART posted revenues of CZK 5.1 billion and profit of CZK 27.4 million in the fiscal year 2015/2016. In effect, the company overperformed the market with revenue growing by almost 11% year-on-year and the profit tripling. This year, DATART introduced its concept of small urban stores focused primarily on the immediate availability of products and personal contact with customers.
About HP TRONIC
HP TRONIC is a Czech company with more than 25 years of history, a leading retailer in the market for home appliances, consumer electronics, computers and mobile phones in the Czech Republic and Slovakia. The group operates the Euronics retail chain which, in addition to 120 brick-and-mortar stores, has three storage facilities and its own e-shop. The portfolio of products the company introduces to the Czech, Slovak and many other European markets includes products by the ETA, GoGen, JVC and Hyundai brands. The HP TRONIC group also includes one of the biggest online shops on the Czech market, Kasa.cz, and its Slovak counterpart, Hej.sk, which is one of the biggest players in Slovakia. In addition, HP TRONIC offers its own instalment sales system and operates the Valachy Resort with the Lanterna, Horal and Galik hotels, the Razula ski resort and a golf course in Velké Karlovice.
HP TRONIC has more than 1,400 employees and achieved a turnover of CZK 9.1 billion and profit of CZK 104 million last year.
Daniel Večeřa, the CEO of HP TRONIC, won the Czech Business Personality of 2015 award bestowed by the Czech Confederation of Commerce and Tourism.