Big exit for Enterprise Investors

The firm has sold a 69 per cent stake in Polish pharmaceutical group Polfa Kutno for $79m, yielding a 5.4 multiple on the invested capital.

Polish private equity firm Enterprise Investors has announced that three of its funds have completed the sale of Polfa Kutno, the second largest independent pharmaceutical company in Poland.


Having held 69 per cent of Polfa’s stoke, Enterprise sold its shares on the Warsaw Stock Exchange for a total of $79m, netting it a 5.4 multiple on the invested capital.


The funds managed by Enterprise Investors were the controlling investor in Polfa Kutno from 1995, when the firm was privatised. Since then, EI worked with management to prepare and implement a major restructuring and development program.


According to Enterprise Investors, Polfa Kutno is one of the fastest-growing pharmaceutical companies in Central Europe. The company has estimating earnings of $64m this year and net profit of $8m.


“After all the fundamental changes that we have implemented together with Polfa’s management, the company has proved that it is ready to continue developing on its own,” said Ryszard Wojtkowski, a partner at Enterprise Investors and chaiman of Polfa Kutno.


Private equity funds managed by EI have financed 91 companies since the firm was set up in 1990. It manages funds provided by major private European and US investors totaling $722m. The funds have exited 52 investments and returned $640m to their investors.