Target Company Information

Avallon MBO FUND II and Genesis Private Equity III (GPEF III) are acquiring EQOS Energie Polska and EQOS Energie Česko, both formerly part of the international EQOS Energie Group, a leading European provider of comprehensive technical infrastructure services owned by the German-Swedish private equity fund Triton. Following the completion of the transaction, both companies will operate under the new brand Stangl Technik. This marks the tenth investment for Avallon MBO FUND II since its inception and its first collaboration with another private equity fund.

The deal represents the first-ever joint investment between the Polish private equity fund Avallon and the Czech private equity fund Genesis through their respective investment vehicles: Avallon MBO Fund II and Genesis Private Equity Fund III.

Industry Overview in Target Countries

In both Poland and the Czech Republic, the technical infrastructure sector has been experiencing steady growth, propelled by increased demands for modernization and technological upgrades. The local market is characterized by a mix of established players and emerging firms, presenting opportunities for consolidation and strategic partnerships to enhance service delivery and expand client bases.

The energy, telecommunications, and transportation sectors, where EQOS Energie specializes, are witnessing a surge in collaborative ventures as companies seek to optimize operational efficiencies and improve service reliability. Emerging tech trends, including smart grids and digital communication systems, are driving innovation in these industries.

In Poland, the government's focus on sustainable energy solutions and infrastructure improvement plans have prompted substantial investments, fostering a healthy environment for technical service providers. Similarly, the Czech Republic is investing in smart infrastructure projects, indicating a promising outlook for companies engaged in technical and construction services.

Rationale Behind the Deal

The decision to divest Polish and Czech operations is rooted in EQOS Energie Holding's long-term strategy, prioritizing core activities in energy, telecommunications, and transportation infrastructure. The subsidiaries in these countries, focused on technical and construction services, were seen as outside the holding's main operational focus.

By partnering with Aballon and Genesis, EQOS Energie is ensuring that both firms will receive the necessary support to stimulate their future growth, positioning them for dynamic development post-transaction.

Investor Information

Avallon is an independent Polish private equity firm with extensive experience facilitating management buyouts (MBOs). Since 2001, Avallon has participated in nearly 100 MBO transactions and has established itself as a pioneer in Poland's private equity sector. Currently, Avallon manages its second fund, Avallon MBO FUND II, with capital of 109 million euros.

Genesis Capital provides advisory services to private equity funds, focusing on growth financing for SMEs in the Czech Republic and Slovakia. Established in 1999, Genesis has supported four funds with a total capitalization exceeding 170 million euros, investing over three billion Czech korunas in almost 50 companies throughout its history.

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This transaction could be a strategic and timely investment for Avallon MBO FUND II and Genesis Private Equity III, as the technical infrastructure sector in Poland and the Czech Republic is set to expand due to increasing demand for modernization. The expertise of the management teams in both companies is a significant asset, providing a solid foundation for future operations under the Stangl Technik brand.

Moreover, the consolidation of technical and construction capabilities in the region creates an advantageous position to tap into emerging market opportunities. The dedication of local management, coupled with the operational support from the private equity partners, is likely to propel growth significantly.

However, potential challenges such as market competition and economic fluctuations must be acknowledged. Overall, with careful management and strategic direction, this investment presents a strong opportunity for appreciation and growth in the long term.

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