24. března 2013

Genesis Capital Sold the Company CTS-servis, a.s. to Charvát Group

The largest producer of container technology equipment in the Czech Republic, CTS-servis, is changing ownership. The Company will become part of Charvát Group, a major producer of hydraulic cylinders and related equipment.

Genesis Capital, one of the largest managers of private equity funds in the Czech Republic, sold the company CTS-servis, a.s. to Charvát Group, a leading Czech manufacturer of a wide range of hydraulic equipment for general industrial use.

"Over the past five years, Genesis Capital supported CTS-servis a.s. in its development initiatives. In 2009 and 2010, the managers of the Company were able to overcome a temporary drop in demand from its key customers in construction and waste management industries. The Company responded to reduced demand by adding new products and optimizing its production processes. As a result, the CTS-servis was able to increase its market share. The Company also established an extensive network of business contacts and partners in Central and Eastern Europe and Germany – and, as a result, over the past year, it has experienced a significant growth in exports,"said Radim Jasek, Partner at Genesis Capital, on the past years’ development in CTS-servis.

GPEF, a fund managed by Genesis Capital, acquired CTS-servis in 2007 from a group of original founders. The strategic goal was further development in the Czech market and focusing the Company on export.

"We view our investment into CTS-servis as successful. Despite several years of adverse economic conditions, the Company’s management, in collaboration with Genesis Capital, has been able to improve the Company, which is now, in my opinion, well poised for further growth and development within the new owner’s group,"added Jan Tauber, the Managing Director of Genesis Capital.

Confirming this, Oto Maršálek, the CEO of CTS-servis, a.s. noted: "Due to the support we’ve had from our previous investor, we are now a modern, strong and well-positioned company. This transaction will provide CTS-servis with opportunities to take advantage of synergies with the new owner group.”

Jiří Charvát, the majority owner of Charvát Group added: “The product portfolio of CTS-servis suitably complements our existing product line. We view the investment into the Company as a long-term strategic commitment. CTS-servis has reported stable results over the long-term; our main contribution to a further growth should come from strengthened sales activity.”

About the Company CTS-servis

CTS-servis, a.s. is an industrial company producing a wide range of specialty superstructures for trucks, commercial vehicles and tractor trailers. Its main products include hookloaders and skiploaders for containers and containers themselves. The Company also produces equipment for agriculture, military, and railway vehicles. In addition to its own product manufacturing, the Company provides assembly, installation and servicing activities related to the truck bodies and superstructures of its own and other manufacturers.

For more than twenty years, the Company has been the largest manufacturer and supplier of container technology in the Czech Republic, supplying container mechanisms under its own CTS Lift brand. Its products are also exported to other countries in Central and Eastern Europe and Germany. CTS-servis is located in Okřínek by Poděbrady. It has 80 employees and sales in 2012 were around CZK 200 million.

About Genesis Capital

Genesis Capital’s goal is to help finance the growth and development of small and medium-sized companies in the Czech Republic and Slovakia. Through its venture capital funds (private equity), it has provided support to more than 25 companies and many of these companies have been able to become market leaders in their particular fields through their collaboration with Genesis Capital. In total, Genesis Capital has already secured more than two billion crowns to help Czech and Slovak companies grow.

Since its founding in 1999, Genesis Capital has successfully managed three venture capital funds that raised a total of almost EUR 100 million. Two of these funds have been fully invested into the targeted Czech and Slovak companies. The company’s currently open fund, Genesis Private Equity Fund II, had its first closing at EUR 40 million.

A partial list of companies in which Genesis Capital has invested includes: Profimedia, Vydis Group, JRC Game, Servodata, pietro filipi, Gumotex, AB Facility, KS Klima-Service and Energetické strojírny Brno.