Consortium acquires Czech coal mines

RPG Industries, a special purpose private equity vehicle, has acquired a Czech industrial conglomerate in a €400m transaction reported this week.

RPG Industries, a consortium of private equity investors, has acquired Czech coal mining group Karbon Invest in a leveraged buyout, Reuters reported earlier this week.
 
RPG is a Cyprus-based special purpose vehicle controlled by Zdeken Bakala, the former owner of Czech brockerage Patria Finance, and Crossroads, a London-based private equity house focusing on central Europe. The vendors were Czech businessmen Viktor Kolacek and Petr Otava.
 
Although the details of the transaction have not been disclosed, Reuters quoted sources close to the deal suggesting a price of approximately €400 million ($515.2 million) for a two-thirds equity stake in the group.
 
According to the report, the takeover was financed by a mixture of private equity and bank loans. HypoVereinsBank and Erste Bank arranged financing, and Morgan Stanley advised the buyers.
 
The deal gives RPG control of Karbon's subsidiary OKD, the Czech Republic's largest coal mining company. OKD is the country's fourth largest employer, with 17,000 staff and annual revenue of $790 million. Last year it produced 11 million tonnes of black coal. The transaction also gives RPG control of Ceskomoravske Doly, a smaller mine, and Metalimex, the largest Czech commodity trader.