With more than 100 years history TES Vsetín s.r.o. (“TES / the Company“), based in Vsetín, Czech Republic, is an expert in complex engineering and production of its own proprietary electric machines and related system components. Genesis Private Equity Fund IV, the private equity fund of Genesis Capital, and Avallon MBO Fund III, a management buyout private equity fund of Avallon, team up with the existing management team of TES to acquire 100% of the Company from funds managed by ARX Equity Partners. The closing of the transaction is expected in February 2023 and is subject to approval by the Czech anti-monopoly authority.
TES Vsetín, established in 1919, covers the complete value chain from development and design through machining and assembly to testing and certification with the potential to further utilize ample available manufacturing capacities. Its production ranges from individual components to special generators and motor systems used in the conventional and renewable energy, automation, construction, railway, and science industries. TES has 550 employees and exports its products to 65 countries worldwide.
“The investment into TES Vsetín is an opportunity to take over the torch from ARX and support a traditional Czech manufacturer on its commenced journey back to the limelight. CEO Manfred Lerch has gathered an excellent management team with a strong appetite to use TES’ competitive advantage of having a fully vertically integrated production process to turn it into a leading European electric machines and components producer. In addition to an organic way of growth there seem to be also interesting potential add-on opportunities in the region,” comments Martin Viliš, Partner at Genesis Capital Equity.
“Investment in TES Vsetín is another great example of Avallon’s core principles – investing together with partners who make a great team and strongly contribute to the growth of portfolio companies. In this case we are joining our forces with experienced managers of TES and once again with Genesis Capital. We plan to use this opportunity to build a significant European player in the area of electric machines production, growing organically and through acquisitions in the region,” adds Mateusz Kacprzak, Investment Director at Avallon MBO Fund.
“We are pleased that TES will be acquired by two reputable private equity investors which will continue to support the Company in the next phase of its growth and development. We want to thank the TES management team, led by CEO Manfred Lerch, for the excellent partnership and cooperation with ARX over the past years, and we wish them continued success with this new chapter”, comments Michal Aron, Partner at ARX.
“In the light of increasing global demands for renewable electric energy and teaming up with two experienced private equity investors, our management team is highly motivated to continue the successful growth path which started under the lead of ARX three years ago. We are looking forward to working on strategic windows of opportunity together with Genesis and Avallon, making TES a European leader in electric machines”, concludes Manfred Lerch, CEO of TES.
About Genesis Capital
Genesis Capital is a private equity group offering financing for growth and development to small and medium 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 60 companies. At present, Genesis funds hold investments in the following companies: Hecht Motors, Borcad, HP Tronic/Datart, Sanborn, 11 Entertainment Group, Summa Linguae Technologies, Conectart, GTH Multicatering, Hecht Motors, Borcad, R2B2, Home Care Promedica, HC Electronics and JP-Prolak.
For more information, please visit: www.genesis.cz/en/
About Avallon MBO Fund
Avallon MBO is an experienced and trusted investor in the management buyout field. For twenty-five years, it has been carrying out investments in Poland and CEE together with managers. It has participated in over one hundred transactions, and the total value of funds it has raised for investment purposes is over EUR 300 million. The Avallon’s portfolio includes seven other firms: Marketplanet, EDC Expert, Wosana, Clovin, Norlys, Hortimex and Globema.
For more information, please visit: www.avallon.pl/en/
About ARX Equity Partners
ARX Equity Partners (“ARX”) is a private equity firm with over 25-year track record supporting the growth and development of mid-sized companies in Central Europe. With more than € 300 million raised in four funds, ARX has become a leading private equity firm in its segment in the Central European region. Headquartered in Prague, the firm’s activities are managed by an experienced and multinational team of investment professionals, combining a wide range of international expertise plus in-depth local knowledge. These features enable our portfolio companies to realize their full potential while achieving superior returns for our investors and partner entrepreneurs. Partnering with owners, managers and other co-investors, ARX focuses on later stage growth-oriented investments, such as management buy-outs and buy-ins and industry consolidation transactions across all sectors.
For more information, please visit: www.arxequity.com
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PR representation of Genesis Capital:
David Vondra, Insighters
E-mail: david.vondra@insighters.cz, phone +420 776 700 131
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PR representation of Avallon:
Joanna Wiśniewska
E-mail: j.wisniewska@avallon.pl, phone +48 603 896 484
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