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ARX Equity Partners completes acquisition of Czech engineering business TES Vsetin

ARX Equity Partners (ARX), a private equity firm with a 20-year track record supporting the growth and development of mid-sized companies in Central Europe, has completed the majority acquisition of TES Vsetin (TES).

Headquartered in Vsetin, Czech Republic, TES is an engineering company active primarily in the manufacturing of system components relating to electrical machines, in addition to both the design and manufacturing of its own proprietary machines, such as generators and electric motors.

TES supplies critical components and machines to several blue chip across multiple industries. The Company generated revenues of over EUR60 million in 2018 and currently employs around 600 technically skilled staff.

As part of the transaction, ARX has agreed to partner with the Company’s existing management team, who will lead its future growth and development.

ARX acquired the business from an affiliate of Advent International. Financial details of the transaction were not disclosed and TES represents the fourth investment from the ARX IV Fund.

To date, ARX’s track-record includes several, successful lower mid-cap manufacturing investments. The firm intends to capitalise on this strong sector experience stemming in particular from its long and successful experience with former portfolio company, VUES Brno, which operates in adjacent markets to TES. VUES Brno was exited in a strategic sale to NYSE-listed Moog in 2018.

Michal Aron, Partner at ARX, says: “We are very impressed with TES’ ability to deliver high quality solutions for a demanding blue-chip customer base and we look forward to partnering with their already strong management team to drive future growth in an exciting new chapter for the business.”

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