Enterprise Investors agrees Polish PIPE

The Central and Eastern Europe specialist is paying a 48 percent premium to buy a stake in Warsaw-listed drinks maker Kofola-Hoop. If successful, the €143m acquisition will be the region’s largest consumer deal ever.

Enterprise Investors’ Polish Enterprise Fund VI has tendered a €143 million ($202 million) offer to buy 43 percent of Warsaw-listed drinks producer Kofolo-Hoop.

Polish Enterprise Fund VI is acting jointly in the bid with three of the company’s current shareholders: KSM Investment, which owns 51 percent of the stock, and two private investors, who between them own a further 6 percent.

Kofola: not to 
be delisted

“We do not intent to delist the company,” said Enterprise Investors partner Jacek Wozniak, who is leading the deal, in a statement.

Polish Enterprise Fund VI is the only party acquiring stock in the transaction, as it seeks to pick up the remaining 43 percent of the company. It has already agreed to purchase around 30 percent of the shares from the founders of Hoop, Marek Dutkiewicz and Dariusz Wojdyga.

The deal is expected to complete on 6 November this year.

Kofola-Hoop, formed when Kofola and Hoop merged in May 2008, employs more than 2,600 people in Poland, the Czech Republic, Slovakia and Russia, and has a turnover of nearly nearly PLN1.2 billion.

Kofola-Hoop’s best-known brands include Hoop Cola, Kofola – a Slovakian cola brand, Paola syrups and Artic and Rajec mineral waters.

Dariusz Pronczuk, managing partner of Enterprise Investors, suggested that the region’s public markets are providing compelling opportunities, and that Enterprise Investors would seek to capitalise more in the future.

“The current market presents opportunities for private equity to acquire large stakes in public companies which have a strong market position and highly experienced management. This is an entirely new market segment in the CEE region, and one that will generate big deals in the near future. We intend to have a very active part in this trend,” he said.

Enterprise Investors is an established name in the Central and Eastern European market. Earlier this month it closed its debut venture fund on €100 million.