ARX Equity Partners (“ARX”) has completed a leveraged management buyout of a majority shareholding in Krkonošské vápenky Kunčice a.s. (“KVK”) and its subsidiary, Parabit Technologies s.r.o. (“Parabit”).
KVK (www.kvk.cz) is the largest independent Czech producer of mortars used in construction, wall renderings, construction adhesives and fillings for mortar joints. KVK also operates two quarries which produce stone products for various applications.
Parabit (www.parabit.cz) is a leading Czech producer of oxidized and modified bitumen hydro insulation sheets. Parabit’s oxidized membranes are used for flat roofs, waterproofing of foundations and basements. Modified membranes are typically used in road and bridge construction.
ARX and the KVK management team will focus on expanding the business and completing complementary add-on acquisitions from the KVK platform. „We are delighted to have the opportunity work with the outstanding KVK management team. As one of the few construction materials groups in the Czech Republic that has remained highly profitable throughout the economic downturn, we believe KVK is well positioned to benefit from attractive medium-term growth prospects in the Czech residential reconstruction and new build markets,” said ARX Co-Managing Partner Brian Wardrop.
KVK’s annual sales exceed € 30 million. Financial details of the transaction were not disclosed.