Enterprise Investors sells ceramics manufacturer for $87m

Warsaw-based Enterprise Investors has sold a tiles producer to a Polish bathroom fittings company for $87m, in the first of three possible exits in a month.

Enterprise Investors, a Warsaw-based private equity firm, has sold its 46 percent stake in Opoczno, a Polish ceramic tiles manufacturer, to Cersanit, a listed Polish tiles and bathroom fittings producer, for $87 million (€66 million) through a public tender. Cersanit paid PLN 33.50 (€8.7; $11.4) per share, making Enterprise Investors a 2.4 times investment multiple on its investment.

Opoczno: ceramic tiles

Jacek Siwicki, president of Enterprise Investors, said that while Opoczno did not perform as well as expected, the gain was good enough.  He said: “There is a Polish saying – ‘If you don’t have what you like, like what you have’.  The average return we have made on all of our exits is 2.5 times.  We didn’t see much chance for an improvement in the business so we sold.”

Enterprise Investors had no financial advisors while legal advice came from Gessel, a Warsaw-based firm.

Enterprise Investors and Credit Suisse privatised Opoczno in 2001 for $36 million, according to Siwicki.

In June 2005 Opoczno floated 99 percent of its share capital on the Warsaw Stock Exchange at PLN 55 per share, providing an exit for Credit Suisse.  Credit Suisse held about 50 percent of Opoczno and made a return of around three times its investment, according to Siwicki.

In September 2006 Enterprise Investors closed its €658 million Polish Enterprise Fund VI, which will invest in companies in central and eastern Europe. 

Siwicki said Enterprise Investors might make two exits in the next month.

Enterprise Investors has attracted capital of €1.6 billion since its inception in 1990.  The firm’s funds have funds have sold 87 investments to date, generating €1.2 billion.