ARX Equity Partners has exited its investment in Polish plastics processor Ergis generating an overall internal rate of return of over 33 percent and 4.5 cash-on-cash multiple. The ARX exit was executed via a series of block trades to investors on the Warsaw Stock Exchange in December 2013, which followed the partial realization of the Ergis investment in 2006.
ARX Equity Partners (“ARX”) has fully exited its investment in Polish plastics processor, ERGIS-EUROFILMS S.A. (“Ergis”), generating an overall internal rate of return of over 33% and 4.5 cash-on-cash multiple. The ARX exit was executed via a series of block trades to investors on the Warsaw Stock Exchange in December 2013, which followed the partial realization of the Ergis investment in 2006.
ARX originally acquired a majority shareholding in the packaging company in 2003 in a leveraged management buyout transaction in partnership with Ergis Managers Tadeusz Nowicki and Marek Gorski. Several value-creation initiatives have been implemented during the period of ARX ownership, including the relocation and consolidation of production sites, divestments of non-core assets and the completion of three complementary add-on acquisitions. Ergis revenues tripled during the period of ARX ownership, growing to more than € 153 million in 2012, and today the company generates more than half of its revenues outside Poland.
ARX Co-Managing Partner Jacek Korpala commented, “Our investment in Ergis is an excellent example of the long-term value-creation potential of the CEE lower mid-market. Key pillars of the ARX investment strategy were successfully implemented in Ergis, including the formation of a successful partnership with management and creating value through add-on acquisitions.”
About ARX: (www.arxequity.com)
ARX is a Central and Eastern European focused private equity firm. The firm operates from offices in Bucharest, Budapest, Prague and Warsaw and its investor base is comprised of major institutional investors. The ARX family of funds are organized to make equity investments in Central and Eastern European countries, with a focus on later stage investments such as management buy-outs and buy-ins and industry consolidation transactions.
Arx Equity Partners
+48 22 850-9960