Dresdner Kleinwort Capital has made an investment from its $225m Emerging Europe Fund with a $2.5m strategic investment in Mieszko, the listed Polish confectioner.
The agreement, which is subject to approval by the Polish Securities Commission, will see DrKC take up a $2.5m share issue, following which it will purchase part of the stake in Mieszko currently held by the Gajdzinski family, the controlling shareholder.
Roger de Bazelaire, Regional Director heading Dresdner Kleinwort Capital’s Warsaw office, believes that Mieszko has the potential to be a market leader in Poland 'by a combination of organic growth, stronger financial discipline and possible acquisitions. Over time we may also consider expansion into neighbouring countries,” he added.
In 2001, DrKC closed its Dresdner Kleinwort Capital Emerging Europe fund, raising $225m from investors including Dresdner Bank, CalPERS, GIMV and Donator.
This will be DrKC’s second major investment in Poland following its investment in Retail Investment Concepts, an office supplies business in Poland and Hungary.
DrKC funds typically seek to invest between $3m and $25m focusing on Central and Eastern European companies in the telecommunications, media, IT/technology, healthcare services, branded consumer products, distribution, retailing and specialist engineering sectors. It invests primarily in pan-regional businesses; companies requiring expansion and replacement capital; or MBOs/MBIs.