Information on the Target

Dino is a rapidly growing supermarket chain in Poland that specializes in the proximity supermarket format, catering to customer needs through convenience and accessibility. Established in 2000, the company distinguished itself by creating a unique shopping experience that has effectively captured a significant portion of the local market. At the time of Enterprise Investors' investment in 2010, Dino operated 97 stores, and with strategic support and financing, it has expanded its footprint substantially.

During the period of investment, Dino's number of stores increased to 628 by 2016, marking it as one of the fastest-growing supermarket chains in Poland. The company's noteworthy growth can be attributed to the enhancement of its supply chain and back-office operations, bolstered by the establishment of two distribution centers and advanced IT solutions. This operational efficiency has not only allowed for rapid expansion but has also generated significant employment opportunities, increasing the workforce from a modest number to approximately 11,600 by April 2017.

Industry Overview in Poland

Poland's retail industry has been characterized by substantial growth in recent years, driven by increasing consumer spending and a shift towards modern shopping formats. The supermarket segment, in particular, has experienced transformation with the rise of convenience stores and proximity formats that cater to busy lifestyles. Retailers have adapted by offering enhanced customer experiences, emphasizing quality and service.

In addition to consumer behavioral shifts, advancements in technology have reshaped the industry. The implementation of digital solutions in supply chains and customer engagement strategies has become paramount. Companies that harness innovative technologies, whether in logistics or customer interaction, are positioned to gain competitive advantages in the dynamically evolving market.

Furthermore, Poland's economic stability and favorable demographic trends underpin robust opportunities in the retail sector. With a growing middle-class and increasing urbanization, the demand for diverse product offerings continues to rise. Retail players that can successfully navigate these trends are likely to capitalize on the burgeoning consumer base.

Overall, the Polish retail landscape is increasingly competitive, with established players and new entrants striving to innovate and adapt to consumer demands. The proximity supermarket trend exemplifies this shift, as format stores that offer convenience are becoming increasingly popular among Polish shoppers.

The Rationale Behind the Deal

The investment in Dino was primarily motivated by its alignment with strategic trends in the retail industry, particularly the growth of the proximity supermarket format, which enhances convenience for customers. Enterprise Investors recognized that investing in a scalable business model in a dynamic market could yield substantial returns. As the company was already positioned for growth, the backing provided through expansion financing allowed Dino to upgrade its infrastructure and broaden its market presence efficiently.

Additionally, investment in management expertise and operational strategies empowered Dino's leadership team to make informed decisions, optimizing the company's trajectory for sustained growth while managing challenges effectively. This synergistic approach facilitated explosive expansion during the investment window, setting the groundwork for continued success.

Information about the Investor

Enterprise Investors is a prominent investment firm specializing in growth capital for companies in Central and Eastern Europe. With a proficient understanding of the markets they operate in, they focus on sectors such as consumer goods, services, and technology. The firm partners with management teams to foster long-term growth through strategic investments that enhance operational capabilities.

Through their extensive experience, Enterprise Investors has successfully facilitated transformations of numerous businesses by providing not only financial support but also the necessary expertise in management, marketing, and operational optimizations. Their track record demonstrates a commitment to building sustainable businesses that can thrive in competitive environments while delivering value to their stakeholders.

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In evaluating the investment in Dino, it is clear that it represents a highly favorable outcome within the context of market conditions and retail dynamics in Poland. The decision to invest in a company focused on proximity supermarkets was astute; it aligned well with evolving consumer preferences towards convenience, allowing the investment to gain traction and appreciation in value over time.

The successful IPO on the Warsaw Stock Exchange, which generated gross proceeds of EUR 376 million and a 7.6x total gross multiple, reflects the robust performance of Dino post-investment. Moreover, the continued growth exhibited by Dino since the exit signifies the sustainability of its business model and the enduring appeal of the supermarket format in the Polish market.

Consequently, the strategic decision-making and operational enhancements backed by Enterprise Investors have facilitated both immediate returns and long-term value creation. This case exemplifies the potential for successful outcomes when investors align with businesses poised for growth within dynamic sectors. Overall, the investment in Dino is seen as a strong example of prudent capital allocation and effective management collaboration.

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