Enterprise buys Polish retail chain

Polish buyout firm Enterprise Investors has bought Komfort, the country’s largest retail chain, for €64 million.

Enterprise Investors, one of Central and Eastern Europe’s biggest private equity investors, has bought Polish retail giant Komfort for €64 million ($87 million).

Enterprise has bought 100 percent of the retail chain, which last year had sales of nearly PLN 340 million (€90 million, $118 million) and operating profits of about PLN 20 million. The acquisition was financed with debt from Bank Zachodni.

Enterprise has brought in Andrzej Mrugala as executive chairman, and plans to further expand the store network across Poland and into other CEE countries.

The company said Komfort will probably be floated on the Warsaw Stock Exchange in a few years. The exchange is extremely liquid because most of Poland’s biggest pension funds are compelled to invest a large proportion of their assets there.

Enterprise Investors manages six funds with a cumulative value of €1.6 billion. The company has used its fifth and sixth funds to finance the deal.

Enterprise has invested €1 billion in 104 companies including several retail businesses, such as supermarket chain Eldorado, and pharmacy group Apteki Polskie.