Highlander Partners Will Acquire Power Transformers Factory in Poland

November 14, 2012 – Private equity investment firm Highlander Partners will acquire from Polimex-Mostostal S.A. the assets of its medium voltage industrial transformers division based in the city of Łódź. The manufacturing and repair business will be contributed to a new company named ZREW Transformatory as a part of the transaction. ZREW’s management is already planning additional capital investments to enable further growth and production capabilities after the ownership change. The business is divested by Polimex-Mostostal S.A. due to its overall strategic initiative to focus on its core business operations. The purchase price will be PLN 46.7 million. The transaction is scheduled to close in the coming weeks, once certain formal transfer requirements are met.

Highlander Partners, an American investment firm with an active presence in Central Europe, focuses on investments in middle-market manufacturing and service companies that participate in promising sectors, such as the Polish energy sector. The ZREW transformers business has been in continuous operation for almost 50 years and has developed deep experience in serving the needs of diverse clients not only in the energy generation and production fields, but also in a variety of industrial, manufacturing and other applications. While maintaining deep roots in the local Polish market, ZREW Transformatory serves clients throughout Central and Eastern Europe with flexible and customized offerings of products and services. Its 2011 revenues were PLN 62 million.

“We believe that the newly re-established ZREW Transformatory possesses not only a deeply entrenched position in the Polish market, but also a high growth potential. To support this growth, we are planning further investments, which will ensure a stable and long-term development of the company. Because of a historically undercapitalized transmission and distribution network infrastructure, both Polish and regional energy sectors should require and will greatly benefit from considerable investments in the future. ZREW is ideally positioned to be a leader in that process” – says Artur Łakomiec, Operating Partner at Highlander Partners.

ZREW Transformatory provides manufacturing, repair and upgrade services that require a highly-customized approach and a deep understanding of specific technical and business requirements of clients in various industry sectors. Long-term market participation, reliability and an exemplary reputation among current clients, as well as its comprehensive understanding of the local market, will remain the company’s enduring competitive advantages.

“Involvement of Highlander Partners in the Łódź business will allow us to raise the capital necessary to continue our strategic improvement plan and fulfill our commitments. We are satisfied with the sale process of ZREW and are glad that in just a few months we managed to find not just an investor, but a trustworthy business partner. As the leading Polish engineering and construction company, we would like to send a clear message to our investors, employees and business partners that the company is on track to re-enter the path of stable growth. We will undertake all necessary measures to help our company reach this goal.” – says Robert Kosmal, Head of M&A at Polimex-Mostostal.

About Highlander Partners
Highlander Partners is a Dallas-based (Texas, USA) private investment firm specializing in long term investments into middle-market businesses. Established in 2004 by partners who have committed over $400 million of principal funds for direct private equity investments, the firm has a flexible and rapid decision making process free from many restrictions of typical institutional investors. The firm typically invests in companies operating in targeted industries that allow the principals of the firm leverage their significant operating and investing experience.

Highlander Partners opened its Central European office in September 2008 to capitalize on the vibrant growth of entrepreneurship in the region by bringing its investment philosophy and experience to private equity projects in Poland and other new member states of the EU. To our business partners in Central Europe, we bring all of the competitive advantages of Highlander Partners—including flexibility, agility and long-term outlook—through a local team with many years of experience in value creation in the region. Highlander’s other equity investments in Poland are Akomex, a manufacturer of packaging products, and MEDI-System, a healthcare provider.

For more information about Highlander Partners, please visit www.highlander-partners.com.

About Polimex-Mostostal
Polimex-Mostostal is the leader in Polish construction and engineering market. The company offers unique combination of services and production for targeted industries such as oil and gas, energy, chemical, environment, transportation and housing market. The company is unquestioned leader in production of steel elements for construction industry and technical services for energy, oil and gas industries. Polimex-Mostostal is listed on Warsaw Stock Exchange.

For more information about Polimex-Mostostal, please visit: http://www.polimex-mostostal.pl

Media contact

Artur Łakomiec
Highlander Partners
direct: +48 22 445 03 40
email: alakomiec@highlander-partners.com

Stefan Bogucki
Grayling
direct: +48 22 536 04 46
mobile: +48 600 89 14 15
email: stefan.bogucki@grayling.com