Genesis Capital, a leading private equity firm in the Czech Republic, sold ESB Rozvaděče to ESB Elektro, a company formed for this purpose by the former and current managers of ESB Brno and by one external investor. The price of the transaction was not disclosed.
The sale of ESB Rozvaděče represents a successful completion of an investment launched in September 2006 when Genesis Private Equity Fund (GPEF), managed by Genesis Capital, acquired Energetické strojírny Brno (ESB Brno). One year later, in October 2007, the production of switchboard was spun off and an independent company, ESB Rozvaděče, was established. Alois Kaňa was appointed the director of the new operations. In 2010, ESB Rozvaděče reported sales of CZK 301 million and operating profit of CZK 15.4 million.
„The significant element of success of the Genesis Capital investment into ESB Rozvaděče was the establishment of a competitive manufacturing facility in Brno, a traditional centre of the Czech engineering, and the creation of more than hundread qualified jobs. Needless to say, we are also delighted to achieve attractive return on invested funds for GPEF investors,“ commented Jan Tauber, Managing Director of Genesis Capital.
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Genesis Capital
For more than ten years, Genesis Capital has been offering financing to small and midsize companies in the Czech Republic and Slovakia, to support their growth and development. Via its private equity funds, Genesis Capital has already supported more than twenty dynamic Czech and Slovak businesses, many of which have become cutting edge in their chosen field, thanks to their relationship with Genesis Capital. In total, Genesis Capital has provided more than 2 billion Czech crowns in growth capital for companies in the Czech Republic and Slovakia.
Since its inception in 1999, Genesis Capital has managed three private equity funds with a total volume of almost € 100 million. The first two funds have already fully committed their capital. At present, Genesis Private Equity Fund II, with a volume of € 40 million, is open and available to finance prospective investments. The companies into which Genesis Capital has invested include AB Facility, pietro filipi, CCS, ETARGET, Gumotex, Energetické strojírny Brno, Roltechnik, Profimedia, Vydis, GTH CATERING, and others.
In the present environment, marked by difficult access to standard bank financing for small and medium-sized enterprises, Genesis Capital funds provide an advantageous alternative for acquiring the required capital for companies with growth potential; the funds also focus on buy-out financing. Their investors include the European Bank for Reconstruction and Development, Česká spořitelna, and the Belgian investment company Gimv.
ESB Rozvaděče
The company was established on 8 October 2007 through the spin-off of the former switchboard division from Energetické strojírny Brno (ESB). In March 2008, the company moved from the ESB complex on Brno’s Vídeňská Street to new modern premises in the Uchytil complex at K Terminálu 7, close to its original location. From September 2009, the company’s activities, traditionally focused mainly on deliveries of low-voltage switchboards and metalwork products, were extended to include production of equipment for sewage treatment plants, building on the know-how of the former controlling company ESB. This programme with an environmentally-friendly focus will significantly contribute to the determination of the company’s further development.