Warsaw, October 30, 2012- Ecorse Investments, a company indirectly owned by funds managed by Advent International Corporation (Advent), a leading global private equity fund, announced today that it successfully closed its tender offer for the sale of EKO Holding Group shares yesterday, October 29, reaching a total subscription level of 97.98%.
According to the schedule provided in the tender offer document for the sale of EKO Holding shares, the subscription period closed on October 29, 2012. Through the tender offer, the shareholders subscribed to sell the total number of 47,632,553 shares, which is equal to a 97.98% stake in the company. The sales of 62.14% of the shares have already been settled, and the remaining subscriptions will be settled over the following days, in accordance with the information given in the tender offer. Ecorse Investments’ goal is to repurchase shares from the remaining shareholders, reach the threshold of 100% of capital share and eventually delist the company.
Tamás Nagy, Partner at Advent International, commented on the successful closing of the tender:
“The level of almost 98% of shares will allow us to smoothly delist the company and immediately start to implement Advent’s transformation strategy. We believe that time is of the essence in this highly competitive retail market. As an active and committed partner Advent plans to focus on restructuring and the further development of the supermarket stores, both organically and through acquisitions.”
On the 23 of October Ecorse Investments bought the majority stake of EKO Holding and on the 29 of October it announced it had exceeded the threshold of 60% of purchased shares. On October 29, the final day of the subscription period of the tender offer, 35.84% of further shares were collected by Ecorse Investments following an increase in the offer price to 7 zlotys per share. The decision to increase the price was made in the best long term interests of EKO in order to ensure the creation of a shareholder structure that could fully support the strategic transformation of business and set it for growth both organically and through acquisitions
Paweł Ryszkiewicz, Director at Advent International, said:
“Advent always works in partnership with founders and co-investors to grow the long term value of their businesses. We believe that a focused business model and active ownership are important drivers of a company’s development and success. We intend to support EKO in the implementation of changes that will grow the long term value of the business and strengthen its market position.”
About Advent International
Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 16 countries on four continents. A driving force in international private equity for 27 years, Advent has built an unparalleled global platform of over 160 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic repositioning opportunities and growth buyouts in five core sectors, working actively with management teams to drive revenue growth and earnings improvements in portfolio companies. Since inception, Advent has raised €19.4billion in private equity capital and, through its buyout programmes, has completed over 270 transactions in 35 countries. Since inception, the Advent funds completed 149 IPOs on 27 stock exchanges around the globe.
For more information, visit www.adventinternational.com.
About EKO Holding group
EKO Holding Group concentrates its activity on a supermarket chain. The Group operates a number of stores including 305 EKO stores, ca. 800 Rabat franchise stores and 165 Jasmin franchise drugstores. The Group also owns PolskaGrupaDrogeryjna Ltd. (PGD) a wholesaler of household chemicals and cosmetics.