Target Information

Krosno Glass is a renowned Polish glassworks with a storied history spanning over 100 years. The company has built a legacy of crafting high-quality glass products, establishing itself as a significant player in the industry. As it embarks on a new phase of development, Krosno Glass is set to undergo significant ownership changes that aim to revitalize its brand and market presence.

In a recent transaction, Noble Fund Mezzanine FIZAN, co-managed by CVI and a minority shareholder since 2019, has agreed to sell a 60% stake in Krosno Glass. The new majority ownership will be taken on by Iwona Pik, associated with the Polish Holding of Fish, reflecting a strategic shift aimed at driving the company toward ambitious growth plans.

Industry Overview in Poland

The glass manufacturing industry in Poland has seen substantial evolution over the last few decades, characterized by a blend of traditional craftsmanship and modern technology. This sector plays a vital role in the country's economy, producing a variety of glass products that cater to both domestic and international markets. With a growing emphasis on quality and sustainability, Polish glass manufacturers are increasingly positioning themselves to compete globally.

In recent years, the Polish glass industry has faced various challenges, including rising production costs and heightened competition. However, there has also been an upswing in demand for glass products, particularly in the home decor and packaging sectors. The government’s support for manufacturing initiatives has further bolstered the industry’s prospects, fostering an environment conducive to innovation and expansion.

As consumer preferences shift towards more sustainable and locally-sourced products, companies like Krosno Glass are well-placed to capitalize on these trends. Their rich heritage and commitment to quality give them a competitive edge, while also catering to evolving market demands. The predicted increase in revenue and potential public offering in 2028 underscore the industry's positive outlook.

Rationale Behind the Deal

The motivations behind this significant ownership transition lie in Krosno Glass's strategic objective to accelerate its growth trajectory and re-establish its presence on the Warsaw Stock Exchange (GPW) by 2028. With projected revenues of approximately PLN 600 million and an expected EBITDA of around PLN 100 million, this revamped corporate structure is designed to enable Krosno Glass to achieve its ambitious financial goals.

The partnership with Iwona Pik and Noble Fund is expected to leverage their extensive industry experience and resources to enhance Krosno's marketing strategies and product branding, ultimately increasing the company’s appeal to investors. By focusing on expanding its proprietary brand sales and implementing transformative marketing initiatives, Krosno Glass aims to strengthen its market position.

Investor Information

CVI has been a significant player in the investment landscape, particularly within Poland, and holds a 40% stake in Krosno Glass following this transaction. Their involvement since 2019 has been marked by a commitment to fostering growth and innovation within the company. With an extensive portfolio that spans various industries, CVI is well-equipped to provide Krosno with the strategic guidance necessary for its ambitious goals.

Iwona Pik, the new majority owner, brings a wealth of experience from her involvement with the Polish Holding of Fish, presenting her as a valuable asset in steering Krosno Glass toward its future aspirations. Her strategic vision for the company aligns with the overarching goal of revitalizing the brand while enhancing its appeal to a broader investor base.

View of Dealert

The recent acquisition of Krosno Glass represents a compelling investment opportunity, primarily due to the brand's rich heritage and the strategic plan aimed at revitalizing its market position. The combination of a proactive ownership structure and a clear vision for growth sets the stage for potential success.

The financial projections for Krosno Glass are promising, particularly with the aim to generate significant revenue and EBITDA within the next few years. If executed effectively, this could lead to a remarkable comeback for a historical brand that was once among the top five listed companies on the Warsaw Stock Exchange.

Furthermore, the focus on enhancing brand identity and increasing proprietary product sales positions Krosno Glass as an attractive prospect for investors seeking to capitalize on the growing demand for quality glass products. With adequate resources and strategic direction from both the new and existing stakeholders, the company has the potential to realize substantial growth and profitability.

In conclusion, given Krosno Glass's historical significance, combined with an ambitious recovery strategy and promising market conditions, this investment could yield favorable returns for stakeholders in the near future.

View Original Article