HP TRONIC, whose portfolio includes the electronics retailer DATART and the brand ETA, has agreed with Genesis Private Equity Fund III (GPEF III) of the Genesis Capital group to buy-back all the shares held by the fund. As a result, 100% of the shares are now within the corporate structure of the HP TRONIC Group, strengthening control over strategic decisions and allowing for flexibility and autonomy in future development.
Successful Seven-Year Collaboration
Genesis significantly strengthened the HP TRONIC Group in 2017 in connection with the acquisition of DATART. This started a successful era of more than 7 years associated with the development of the "omnichannel" concept in the electronics market.
„We partnered with top management who presented a clear investment plan to create a leader in consumer electronics retail through the consolidation of the HP TRONIC Group with DATART. The extremely challenging process of the consolidation of both groups under the leadership of experienced HP TRONIC CEO Daniel Večeřa was successful despite a number of risks, and the results achieved even significantly exceeded the original plans. The opening of a new modern logistics hall with 30,000 m² of warehouse space in Jirny near Prague, which replaced the original warehouses of both groups, also played a crucial supporting role,“ remarks Ondřej Vičar, Managing Partner of Genesis Capital Equity.
Ondřej Vičar further adds that an unplanned milestone was the challenging period of the COVID-19 pandemic, associated with store closures in 2020 and 2021, which DATART managed exceptionally well.
„The company completely compensated for the drop in sales from stores with increased performance of online sales and was able to handle everything thanks to modern logistics. It is now evident that DATART emerged from this challenging period even stronger, continuing to grow and achieving its highest ever sales and market share at a record level. We have worked closely with dozens of executives over Genesis Capital's twenty-five year history. I dare say that the performance, quality, and true partnership demonstrated by HP TRONIC management were among the best we have had the opportunity to encounter. For that, I would like to express my gratitude,“ concludes Ondřej Vičar.
The period of cooperation was marked by creativity, professionalism, and mutual respect. With hindsight, mutual collaboration can be assessed as beneficial for both parties. „The entry of Genesis into our company in 2017 was not just about the capital contribution. Above all, it meant strengthening the credibility of our intention to acquire 100% of DATART and thus create the concept of a modern multi-channel electrospecialist with a significant market position. Today it is clear that we have succeeded, even though our plan at the time raised significant doubts among many. I believe that over these seven years, we have demonstrated that we are a healthy and young organization with visions we're determined to pursue and capable of fulfilling. Therefore, I would like to thank primarily for the trust with which Genesis joined us in 2017 and which enabled the realization of our vision to create a modern 'omnichannel' under the DATART brand. I would also like to thank the club of banks ČSOB and Česká spořitelna, which has been providing us with the necessary financing since the acquisition of DATART and also arranged a unique form of financing for Genesis' exit,“ comments Daniel Večeřa, CEO of the HP TRONIC Group.
Responding to Challenges and Strengthening Strategic Goals
The consumer electronics market is more dynamic, and with the arrival of the "marketplace" concept, much more competitive. It is therefore essential for companies like HP TRONIC respond to these emerging changes, reflect on new challenges, and focus on fulfilling their strategic goals. An adequate response to the market situation is the cornerstone of maintaining competitiveness and the company's growth.
„It is symbolic that just as the entry of Genesis was a prerequisite for the beginning of one era in the history of our company, its exit is one of the necessary conditions for us to start writing a completely new chapter and to realize the challenge of merging with the NAY group. Other necessary conditions for the realization of this project are approvals from the Czech and Slovak antitrust authorities. While we already have a positive decision from the Czech Competition Authority, we are still awaiting a decision from the Slovak Antimonopoly Office. However, I believe that we will receive a positive decision in a few weeks, and that the last necessary condition for the realization of our project will be fulfilled,“ adds Daniel Večeřa, CEO of the HP TRONIC Group.
The HP TRONIC Group is a major retailer of consumer electronics and home appliances in the Czech Republic and Slovakia. Its portfolio includes, for example, DATART and ETA. HP TRONIC is also a manufacturer, importer, and retailer of its own brands and an exclusive distributor of some electronics brands. The main segments of consumer electronics sales include large home appliances, small home appliances, consumer electronics, IT & communications, and accessories.
Contact:
Petra Psotková
Spokesperson for DATART
E-mail: petra.psotkova@hptronic.cz
tel.: (+420) 775 878 681
Media Representative for Genesis Capital:
David Vondra, Insighters
E-mail: david.vondra@insighters.cz,
tel: +420 776 700 131
DATART is one of the largest electronics retailers in the Czech Republic and Slovakia. It is part of the HP TRONIC Zlín Group, spol. s r.o. DATART has nearly 120 stores in the Czech market and over 20 stores in the Slovak market, with more than a thousand electronics specialists and a network of DATART carriers. It holds the Mastercard Retailer of the Year 2021 award in the electronics category and the title of Most Trusted Brand of the Year for 2020, 2021, 2022, and 2023.
About Genesis Capital
Genesis Capital is a private equity group that offers growth and development financing to small and medium-sized companies in Central Europe. Since its foundation in 1999, Genesis Capital has advised six private equity funds with a total volume exceeding EUR 350 million. These funds have already supported more than 70 companies.
At present, Genesis funds hold investments in the following companies: Hecht Motors, Borcad CZ, TES Vsetín, XBS Group, PFX Group, STT Servis, AV MEDIA, KASPER KOVO, Schulte Group, GAF, 11 Entertainment Group, Summa Linguae Technologies, Conectart, GTH catering, R2B2, HC Electronics, JP-Prolak, SEA Chomutov, UPS Technology and Carussel.
For more information, please visit: www.genesis.cz