Genesis Capital, one of the largest providers of private equity in the Czech Republic and Slovakia, after nearly two years exited its successful investment in HSW Signall. Over the period when Genesis Capital was a major shareholder with 80% share, HSW Signall succeeded in increasing efficiency and remarkably improved its profitability. The annual sales have grown from 230 million Czech crowns in 2012 to 272 million Czech crowns in 2014. Due to its compelling valuation and a relatively short-term investment period, it is one of the most successful recent transactions by Genesis Capital. Vink Holdings Limited, a member of multinational group Amari Plastics, became the new owner with a 100% share.
Genesis Capital entered HSW Signall in March 2013 and is leaving the company after nearly two years. “The standard duration of our investments is around 5 years. Over the last two years the company grew and strengthened under the wings of capable management, and we are sure that it still has great potential for further growth in both Czech and Slovak markets. We were not actively looking for an investor for HSW Signall. However the buying interest of British company Vink Holdings Limited was substantial and their offer appealed to us. Therefore we have agreed to the sale despite the unusually short investment period,” says Ondřej Vičar, Partner at Genesis Capital. Along with Genesis Capital, both the co-founder Jan W. Drnek and HSW Signall’s CFO Jan Tyl, have sold their minority shares in the company.
Genesis Capital acquired share in HSW Signall through its GPEF II fund in March 2013. The company with 40 employees had a stable position in the market but suffered from disproportionally high costs, particularly in logistics. Its warehouses and office spaces were inappropriate. Therefore one of the key decisions was to relocate HSW Signall to the logistics centre in Horní Počernice. Furthermore, the company’s distribution network was optimized and its storage facility in Brno was closed down.“Since then we have decreased our total expenses by one fifth. Besides that we have succeeded in increasing the market share in individual segments, we also got a chance to focus more on developing our own technology and know-how in the segment of industrial printing. The new owners are acquiring a strong and healthy company,” says the co-founder of HSW Signall Jan W. Drnek, who returned to the position of the CEO during the Genesis Capital’s capital entry into the company.
About Genesis Capital s. r. o.
Genesis Capital s.r.o. offers financing to promote growth and development of small and medium-sized companies in the Czech Republic and Slovakia. Through its private equity funds, Genesis Capital has supported more than 30 companies and has helped many of them to become leaders in their respective fields. To this date, Genesis Capital raised over 2 billion Czech crowns for the development of Czech and Slovak companies. Since 1999, Genesis Capital managed three private equity funds with a cumulative size of nearly 100 million Euros. Two of these funds already finished their activities, distributing funds to investors. The third Genesis fund has now been fully invested, providing all raised capital to Czech and Slovak enterprises. Presently, Genesis Capital is preparing to launch a new fund, Genesis Private Equity Fund III, which will also focus on investments into small and medium-sized enterprises in the Czech Republic and Slovakia.
Genesis Capital currently holds shares in the following enterprises: Servodata, VYDIS, KS Klima-Service, JRC Czech, AZ KLIMA, GTH catering, Roltechnik, Sieza, Swell and 3070 Group.
About HSW Signall, s.r.o.
HSW Signall is a leading supplier of materials and technologies for marketing and advertising industries in the Czech Republic and Slovakia. It offers a wide range of products in the segments of durable graphics, large format digital printing, photo mounting, and sign and display printing. The company is an official regional representative of a number of international brands, including Neschen, Mutoh, Durst, HP DesignJet and HP Scitex, Mactac, Poli-Tape, Multi-fix, Forex, KAPA, Dibond, Intelicoat, Verseidag, Onyx and others.
About Vink Holdings Limited
VINK Group/VINK Holding Limited is a privately held business and a leading distributor of semi-finished plastics operating in twelve European countries. It offers plastics sheets, rods, tubes, foils, film, digital printing consumables, printing hardware as well as industrial pipes and fittings. Vink covers the industrial, building and construction as well as the advertising markets. Several Vink outlets operate plastics processing facilities. The partners of Vink are many of the world’s leading manufacturers in their areas.