New Owner of JM-montáže is GA Energo technik
Prague, 1 July 2010
Genesis Capital has sold its one hundred percent share in the successful Brno company, JM-montáže for 143 million crowns. The company’s new strategic owner is GA Energo technik. With this transaction, JM-montáže becomes part of one of the leading domestic power companies with seventeen years experience in the construction of transmission lines for all types of voltage and the provision of services to the power industry. The transaction has already been approved by the Czech Office for the Protection of Competition.
“The sale of JM-montáže to a strategic investor is another success for our private equity funds. During its four years under Genesis Capital management, JM-montáže changed from a construction-assembly company dependant on one main client, to a company with a diversified portfolio of activities and clients and its own project design office, and it has also become an attractive employer for students in technical fields,” said the Managing Director of Genesis Capital, Jan Tauber. Genesis Capital invested in JM-montáže in 2006 through its Genesis Private Equity Fund. “Naturally, the sale of JM-Montáže is good news for fund investors too, who will receive an interesting yield from this transaction,” added Tauber. According to Tauber, however, the sale price may be adjusted following completion of the audit as of the transaction settlement date.
JM-montáže is engaged in the planning, assembly, start-up and maintenance of transformer and switching stations for power engineering companies and industry. Its main clients are E.ON and ČEZ. The company had revenues of 359 million crowns in 2009 and operating profit before write-offs (EBITDA) was 25 million crowns. JM-montáže was initially established as a subsidiary of Jihomoravská energetika in 1994 and became part of Energetické strojírny Brno in 2004.
“The acquisition of JM-montáže and its incorporation into the GA Energo technik structure falls completely within our plans in the Czech Republic, where we want to be one of the leading players in the construction and service of transmission lines for all types of voltage and thereby expand our portfolio of services so that we can deliver complete units for the power industry without the need for third party subcontracts,” said Zdeněk Židek, the CEO of GA Energo Technik. “For JM-montáže, the change of owner will mean an opportunity for further development and the chance to participate in many projects in the Czech Republic,” he added.
The financial consultant on the sale of JM-Montáže was CORPIN Partners, legal consultation was provided by Norton Rose.
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Genesis Capital
Genesis Capital is a prestigious company involved in the management of private equity funds for small and medium companies. The company is based in Prague and has been active on the Czech and Slovak markets since 1999. Genesis Capital is the only private equity company managing funds for international financial institutions and private investors to focus exclusively on the small and medium company segment in the Czech Republic and Slovakia. The current team consists of seven highly qualified investment professionals with extensive experience in the field of private equity investment and previous experience in many other fields.
Genesis Capital manages three private equity funds with a total volume of EUR 90 million. Genesis Capital has invested in more than 20 companies over the last 10 years. It has now sold 10 of these companies and, in most cases, achieved an attractive return on investment. Nine companies currently remain in the Genesis Capital portfolio, whose total turnover exceeds EUR 170 million and which employ a combined total of more than 3,000 people. Companies in which Genesis Capital has invested include AB Facility, Pietro Filipi, CCS, ETARGET, Gumotex, Energetické strojírny Brno, and Roltechnik.
In the current environment, characterised by difficult access to standard bank financing for small and medium companies, Genesis Capital funds represents a good alternative by which companies with potential growth can obtain required capital. However Genesis Capital funds also provide financing for company buy-outs. Fund investors include the European Bank for Renewal and Development, Česká spořitelna and the Belgian investment company, Gimv.
GA Energo technik
GA Energo technik is one of the largest companies on the Czech market in its field. It has branches in 10 locations and is active throughout the Czech Republic. The main focus of its business is the construction, project design and engineering of electrical distribution networks, irrespective of voltage, i.e. 22 kV low voltage and 110–400 kV networks, using both overhead and cable transmission lines. The company provides emergency services for the electrical distribution network in the entire North Bohemian and West Bohemian regions, emergency services for ČEZ on 110kV lines in West, North and Central Bohemia and emergency and accident services for the ČEPS backbone network at 220kV and 400kV level throughout the Czech Republic. It is also active in the construction of solar power stations and, last but not least, assures the replacement of electrical meters and provides transformer station services. The company’s specific technology includes the construction of alternative transmission routes – i.e. the transmission of very high voltage on provisional towers. The company is capable of building more than ten kilometres of alternative transmission line for 400 kV and the same for 110 kV. It successfully offers this technology throughout Europe.
GA Energo technik became a member of the GA holding, based in Germany, at the end of the 1990s. GA has been active on the market since 1916; it employs over 6,000 people in supplying the power industry and generates a turnover of EUR 3 billion.