The purpose of this newsletter is to provide a summary on key events in Central & Eastern Europe relevant to private equity firms and companies. We have issued the following news on our website.
The Siesta Group of Vienna has reached a deal to sell its Somnolyzer 24x7 business to Royal Phillips Electronics. The company is active in the sleep disorder testing market, making a good fit for a Phillips portfolio that has been increasing its holdings in home health care and sleep diagnostics. The industry is expected to enjoy continued growth in the coming years as global awareness of disorders such as Obstructive Sleep Apnea (OSA) increases. Two similar Siesta companies involved in research and clinical services will be retained.
Austria's EK Mittelstandsfinanzierungs AG (EK Fin) has acquired a 15% stake in Transfer Industries Ltd., a holding company which owns the majority share of Global Hydro Energy GmbH. EK Fin cited the booming renewable energy market in Europe, as well as Global Hydro's recent growth, as reasons to add the company to its portfolio.
Penta Investments, the CE investment group based in Prague, has reached an agreement to acquire the PR Market chain in the Czech Republic. Penta will acquire 100% of PR Market, which operates under the Koruna brand name, with completion of the deal expected to come within the next two months. The acquisition is expected to help strengthen Zabka, the convenience store chain also owned by Penta. Neither party has commented on the value of the acquisition as they wait for regulatory approval from the Czech Antimonopoly Office.
Already the Ukraine's largest investor with more than €4.2 billion committed to 194 projects, the EBRD has agreed to provide a substantial loan to LLC Ergop
Hungary's BorsodChem chemicals group has secured a sizable amount of funding to help stabilize its liquidity and build a new production facility. The funding comes by way of an initial €30 million financing package from China's Wanhua Industrial Group designed to help BorsodChem restructure its current debt load.
