ARX Equity Partners (ARX) has exited its 2007 investment in Slovenian producer of plastic components, Tomplast, generating an overall 4.1x cash-on-cash return multiple and an IRR exceeding 20 per cent.
The ARX exit was executed via a sale to funds managed by financial investor KJK Capital.
The Tomplast investment is consistent with the ARX focus on Central European succession- driven majority buy-outs, with a bias toward export-oriented precision manufacturing companies. ARX acquired a majority shareholding in Tomplast from its retiring founders in 2007. In 2008 Tomplast executed the add-on acquisition of Unitplast, which was also a succession-driven situation. Under ARX’s ownership both companies were fully integrated, while the enlarged business was repositioned to focus increasingly on automotive components. The company currently supplies larger and increasingly complex products from its modern Slovenian production facilities, utilising technologies such as 2K and gas injection. Tomplast revenues grew from EUR13 million in 2007 to over EUR40 million in 2015, while employee headcount expanded from 77 to 300 during the ARX holding period.
ARX Managing Partner Brian Wardrop says: “Our investment in Tomplast is a representative example of the types of opportunities available in the Central European lower mid-market. We succeeded in acquiring two smaller companies, which were both facing acute shareholder and managerial succession issues, in order to create an internationally competitive niche plastic components supplier.”
Advising on the sale were Arkas Corporate Finance (M&A), Ulcar & Partners (legal) and White & Case (legal).
