Avallon MBO SELLS PART OF ZETKAMA SHARES
Avallon MBO Ltd, acting in consultation with the Jurczyk family, sold 900,000 shares in block trades to pension and investment funds. Avallon reduced thereby its commitment from 15.66% to 4.44%. Under the agreement, Avallon MBO and the Jurczyk family hold together a package of 37.86% of shares.
The purchase of Zetkama took place in the summer of 2007, when following the tender offer, the Management of the company and the Jurczyk Family purchased the control package of shares from a private equity fund - Riverside. We have been involved in the company since May 2007, so for over five years - says Michał Zawisza, Avallon’s Vice President and the Chairman of Supervisory Board of Zetkama. – Over this time, the company increased revenues from 80 million zł to over 250 million zł, while the net profit of under 7 million zł went up to over 26 million in 2011. These actions were the result of the improved internal organisation of the company, as well as the implementation of the strategy of introducing the capital group, which we communicated about at the time of the buyout of shares from the Riverside fund. Today Zetkama, in addition to its manufacturing plant fittings, has three big subsidiaries producing: fasteners (Śrubena Union Ltd, Żywiec ), components for the automotive industry (MCS Ltd , Żory) and safety valves (Armak Ltd, Sosnowiec).
Presently, Avallon is in the process of launching a new fund - Avallon MBO II, hence the decision to reduce its involvement in ZETKAMA. Avallon has a very positive view of ZETKAMA and its management. -We still keep the shareholding position of the company. We operate within the framework of the agreement with the Jurczyk family, as a result of which together we own almost 38 percent of shares. In the current market conditions, there are interesting investment opportunities, so the knowledge and experience of the company allows them to assess a potential investment opportunity well and then make effective acquisitions - concludes Michał Zawisza.