Information on the Target

Urgent Cargus S.A. is a leading logistics company based in Romania. As a result of strategic growth initiatives, including a merger with a direct competitor, Urgent Curier, and multiple acquisitions, the company has positioned itself as the second-largest player in the Romanian parcel delivery market. With a robust workforce of over 2,000 couriers, Urgent Cargus delivers nearly 30 million parcels annually and has significantly increased its revenue and operational volume since Abris Capital Partners' acquisition in 2013.

Industry Overview in Romania

The Romanian logistics and courier industry has experienced substantial growth over the past decade, fueled by the rise of e-commerce and increasing demand for efficient delivery solutions. The market has evolved to cater to both urban and suburban regions, offering diverse delivery options to meet consumer needs. Romania's strategic geographical location within Europe further enhances its logistics potential, making it an attractive hub for distribution and logistics services.

Additionally, technological advancements and greater investments in infrastructure have contributed to the industry's expansion. Companies in the sector are investing in IT systems and operational efficiencies, which are crucial for maintaining competitive advantage. This modernization facilitates improved service delivery, enabling firms to keep pace with market demands and consumer expectations.

Despite the competitive landscape, opportunities remain for growth and consolidation within the Romanian logistics market. The demand for express parcel services is on an upward trajectory, presenting a favorable environment for companies like Urgent Cargus to scale operations and broaden their service offerings. Furthermore, regulatory support and initiatives to enhance logistics infrastructure bode well for future industry growth.

The Rationale Behind the Deal

Abris Capital Partners has successfully identified and realized the growth potential of Urgent Cargus within the dynamic Romanian courier sector. The decision to sell the company to Mid Europa Partners reflects Abris' strategic evaluation of market conditions and the optimum timing for divestment. Over the investment period, Abris has significantly enhanced Urgent Cargus’ operational capabilities, expanded its market reach, and achieved substantial revenue growth, making it an attractive acquisition for Mid Europa Partners.

This transaction not only reflects the successful partnership between Abris Capital and Urgent Cargus' management but also underscores the value created during their period of collaboration. The sale aims to provide ongoing growth opportunities for Urgent Cargus under Mid Europa Partners’ stewardship while ensuring a smooth transition for the management team and employees.

Information About the Investor

Mid Europa Partners is a leading private equity firm focused on growth investments in Central and Eastern Europe. The firm has a proven track record of backing successful businesses across various sectors, including logistics, where it seeks to leverage operational expertise and strategic guidance to promote sustainable growth. Mid Europa Partners aims to add value to its portfolio companies through active management and development initiatives, positioning them for success in competitive markets.

With extensive experience in the regional market, Mid Europa Partners is well-placed to support Urgent Cargus in its next growth phase. The firm’s investment philosophy aligns with Urgent Cargus' commitment to delivering quality service and enhancing operational capabilities, ensuring that both the management team and investors can work collaboratively toward achieving shared goals.

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This deal represents a strategically sound investment for both Abris Capital Partners and Mid Europa Partners. For Abris, the successful sale of Urgent Cargus highlights their ability to execute a growth strategy that led to a five-fold increase in revenues during their investment period. This success underscores the firm's expertise in identifying and nurturing potential within high-growth sectors.

For Mid Europa Partners, acquiring Urgent Cargus provides an opportunity to capitalize on the strong demand within the logistics and courier market in Romania. The existing operational momentum and established customer trust position Urgent Cargus as an attractive asset for future investment. The company's solid market presence and growth trajectory make it a potentially lucrative addition to Mid Europa’s portfolio.

Moreover, the continued focus on IT investments and modernization efforts within Urgent Cargus implies that future growth is not only achievable but likely. Mid Europa's experience and strategic direction will be essential in navigating the evolving logistics landscape, ensuring the sustained growth and development of the company.

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