Krokus Private Equity has signed an agreement to acquire 75% of the shares in Termo-Organika Sp. z o.o. Krokus PE has made this investment together with the Management of the Company in buyout from the international construction material group CRH plc.
Termo-Organika is Poland’s leading producer of wide range of housing insulation products made of polystyrene foam. The Company also sells a range of branded complementary products like adhesives, plasters, mortars, paints in its ‘Platinum insulation system’ as well as other products (e.g. XPS). Termo-Organika insulation systems are used for facades, roofs & floors, foundations etc.
The company is the market leader in Poland with an annual production of polystyrene foam of 1.4m m3. It has three production facilities and after the buy-out has started production in another plant, which enables Termo-Organika to cover the whole Polish market and to introduce export to Germany. The Company has its own R&D facilities and is developing new products to match changing market needs. The latest product, currently launching on the market, is an innovative ‘orange’ foam.
Krokus PE manages a private equity fund Nova Polonia Natexis II which invests in Polish private midcap companies. The fund provides capital to expanding companies and finances buyout opportunities, including MBO like in Termo-Organika. The total value of the Fund amounts to EUR100m. The Fund managed by Krokus PE invests from EUR3m to EUR15m in one company.
NPN II is the fourth fund of this type managed by the owners of Krokus Private Equity.
"So far the growth of this Company was organic and involved to large extend own funds generated by the Company. The buyout made by the Managed Board as well as capital injection from the financial investor Krokus PE has already brought effects, namely launching production in a new facility and developing a new innovative product," says Witold Radwański (pictured), President and Managing Partner of Krokus PE Sp. z o.o.
"Termo-Organika has an interesting investment plan focused on strengthening its leading position on the Polish market. We do not exclude also growth through acquisitions of other companies from the sector that have complementary products to our offer. Financing provided by Krokus PE will will surely accelerate further growth of the Company." says Dariusz Stachura, Chief Executive of Termo Organika Sp. z o.o.
