EI exits Stomil Stanok

Enterprise Investors firm has sold its remaining 38 per cent interest in Stomil Stanok, a Polish automotive products manufacturer, making a 6.9 multiple on its investment.

Enterprise Investors, the Polish private equity house which has been operating since 1990, has completed the sale of its interest in Stomil Sanok, a Polish manufacturer of molded and extruded rubber automotive products.

The deal concludes an initial agreement announced in March, when Enterprise Investors agreed to sell its 68 per cent stake to management.

 

Enterprise Investors led the privatisation of Stomil Sanok in 1993, investing from The Polish American Enterprise Fund and Polish Private Equity Fund I & II. The business was subsequently listed on the Warsaw Stock Exchange in 1997, with EI retaining a majority stake.

 

In March, EI announced the sale of an initial tranche of shares via a $19.5m buy-back offer. At the time, EI said there would be a further tender offer by March 31 2005, in which management would pay $36m for the remaining securities.

 

EI said in a statement that Stomil Sanok had been one of the firm’s most successful investments in terms of return on investment. In total, the firm said the sale raised proceeds of $60m, equivalent to a 6.9 multiple on invested capital.

 

“[The exit] concludes ten years of co-operation with the management, during which we jointly restructured the company and realised an impressive $50m investment program,” said Jacek Siwicki, managing partner of Enterprise Investors.

 

Stomil Sanok, whose clients include Ford, Volvo, Fiat, Volkswagen, Miele and Bosch-Siemens, reported sales last year of $52m. EBIT was up 89 per cent on last year and net profit grew by 57 per cent.