Author: Josef

Moonray Healthcare today announced the acquisition of Lexum – the market leading provider of ophthalmology in Czech Republic and Poland. The deal will see a phased transfer of ownership from current investors ARX Equity Partners and founder Professor Martin Filipec, who will remain with the group. Lexum operates 10 hospitals across Central Europe including the European Eye Centre, a new 2,500m2 flagship eye hospital in Prague. Moonray Healthcare intends to combine the group with Optegra®, it’s UK based eye hospital group which operates 11 specialist hospitals across England and Germany. Together the group will annually perform more than 40,000 surgical procedures and be one of the world’s largest providers of ophthalmology.

Moonray Healthcare and Optegra CEO, Tim Clover commented that Lexum provided Optegra with a high quality growth platform in an exciting region. “We see lots of similarities between the two groups in terms of quality, innovation and strategy which means that for patients, doctors and employees this marriage makes perfect sense. We hope to exchange the great ideas that we have seen in due diligence between the two companies and further improve patient care and business performance. This investment in Lexum is the latest stage of a significant expansion plan which will continue in further regions.“

Professor Martin Filipec who founded Lexum and continues as Chief Medical Officer commented “Optegra and Lexum both deliver a broad range of premium care in ophthalmology from CLARIVU™, cataract and vitreoretinal surgery, laser refractive surgery, corneal transplants, strabism and oculoplastics surgery. Both companies are professionally driven with prominent doctor engagement and strong external links to ophthalmic research and development. I believe that the combined company will be able to contribute to real innovation in eye care and also act as a partner to the medical device industry in the further development and adoption of the latest technology, which will bring real benefits to patients.” Professor Filipec went on to thank ARX Equity Partners for its support in building Lexum across both Czech Republic and Poland.

Financial details of the transaction were not disclosed.

Moonray Healthcare was advised by KPMG and DLA Piper. ARX Equity Partners and Martin Filipec were advised by White & Case.

About Optegra

Optegra is a specialist provider of ophthalmic services in the UK and Germany. Optegra operates six UK eye hospitals in London, Surrey, Birmingham, Solent, Yorkshire and Manchester and five German eye centres in Kreuzberg in Berlin, Prenzlauer Berg in Berlin, Magdeburg, Krefeld and Aachen. The combined group is supported by over 60 consultant level ophthalmic surgeons. Optegra’s areas of expertise are: laser eye surgery, Clarivu™ (Optegra’s refractive Lens Exchange) cataracts, glaucoma, retinal disease, age-related macular degeneration (AMD) and cosmetic eye surgery. A key area of competency for Optegra is Clarivu, for the correction of Presbyopia which is a procedure during which the existing lens – which hardens over time – is replaced with a new lens that is precisely customised to the individual’s requirements. Clarivu can correct both long and short-sightedness and prevents or eliminates cataract in one proven and permanent procedure, even if you’ve got astigmatism. Optegra Eye Sciences is a not-for-profit research division of the organization which is committed to championing innovations in eye care by partnering with surgeons, industry and researchers at leading Universities

For info: www.optegra.com www.clarivu.com

About Lexum

Lexum is a provider of general ophthalmology and refractive surgery through ten hospitals in the Czech Republic (Prague, Ceske Budejovice, Ostrava, Brno and Tabor) and Poland (Poznan, Krakow, Szczecin, Warsaw and Wroclaw). Working with over 40 surgical ophthalmologists, the business offers a full range of surgical expertise including cataract, glaucoma, retinal, corneal, AMD and cosmetic eye surgery. In 2012, Lexum crossed a historical milestone by performing its 150,000th surgery.

For info: www.lexum.cz, www.lexum.pl

About ARX Equity Partners

ARX Equity Partners is a Central and Eastern European focused private equity firm. ARX operates from offices in Bucharest, Budapest, Prague and Warsaw and its investor base is comprised of institutional investors. The ARX family of funds is organized to make equity investments in Central and Eastern European countries, with a focus on later stage investments such as expansion financing, management buy-outs and buy-ins and industry consolidation transactions.

For info: www.www.arxequity.com

About Moonray Healthcare

Moonray Healthcare is a buy and build investment company specialising in healthcare and medical sciences. Its aim is to focus on identifying organisations with great potential, operating in markets which offer long term growth, to create global businesses with sustainable profits. With a rare combination of debt-free growth capital, management expertise and a global network, Moonray Healthcare’s investment objectives are long term, allowing business planning to incorporate high quality value drivers such as R&D, scientific advancement and building of new market segments or territories.

For info: www.moonrayhealthcare.com

ARX Equity Partners (“ARX”) has completed a management buy-in of a majority shareholdingin Manag a.s. (“Manag”).

Manag (www.manag.com) is a leading Czech company focused on design, manufacturing and assembly of electrical equipment, and related regulatory and control systems. The company is particularly strong in serving clients from refi nery, chemical and pharmaceutical industries. Manag is also active in Slovakia through its local subsidiary.

ARX and Manag’s management team aim to expand the business organically as well as through complementary add-on acquisitions. „Manag has repeatedly won confi dence of its customers for whom Manag’s services are critically important from operational and safety perspective. The company is well-positioned to take advantage of its technical know-how to expand the business beyond its current narrow market niche.” says David Marek, ARX’s Partner who led the transaction.

Manag’s annual sales exceed € 10 million. Financial details of the transaction will not be disclosed.

ARX Equity Partners, through a holding vehicle Finergis Investments Limited, has acquired 51% shareholding in CS Recycling Sp. z o.o.

CS Recycling (www.csrecycling.pl) was established in 2004. The main activity of the Company is plastics recycling (mainly PET).

Financial details of the transaction were not disclosed.

Bohumín, 2nd November, 2010 – ARX Equity Partners, the CEE focused private equity investment firm, has joined current owner Benson Oak Capital as investor in the Bochemie Group, one of CEE‘s leading producers of household care products and a manufacturer of high value-added specialty chemicals. ARX will take a minority stake in the Group.

The investment by ARX is intended to support and facilitate Bochemie’s strategy to continue to deepen and widen its business activities via acquisitions, in particular in the Central and Southeastern European household care sector, by bolstering available financial resources.

„We gladly welcome an investor with a proven track record and intimate knowledge of the geographies where we wish to expand our key businesses“, said Ladislav Kraus, the CEO of Bochemie Group.

Brian Wardrop, Co-Managing Partner of ARX Equity Partners said: „Bochemie has a tremendous opportunity to grow both organically and via acquisitions in the CEE region, and we are keen to support Benson Oak Capital and Group management in their pursuit of these objectives“.

Benson Oak Capital’s founder Gabriel Eichler is pleased to see that ARX Equity Partners share BOC’s confidence in the group: “We have made a significant commitment to Bochemie Group both in terms of our capital and resources and are delighted to see that ARX shares our confidence in the Group’s growing business”, he commented.

Baker & McKenzie and White & Case assisted the parties in the transaction. Transaction details have not been disclosed.

About Bochemie Group

Bochemie Group is one of the leading Central European producers of household care products. Its key brands include SAVO, which is particularly strong in the Czech Republic and Slovakia, and ULTRA in Hungary. The Group is also a global supplier of high value added specialty chemicals, including disinfectants, fungicides, metal surface treatment chemicals and accumulator masses. The Group’s 2010 revenues are expected to reach EUR70 mil.

The Group and Bochemie, its parent company, are headquartered in Bohumín, Czech Republic. The Group further includes EVM, the Hungarian manufacturer of household care products, the Czech engineering company Ekomor, the Polish based pigment manufacturer Permedia and Group’s trading subsidiaries in Slovakia, Poland, Hungary, Bulgaria, Romania and Russia.

Further information is available at www.bochemie.cz and www.savo.eu.

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.

On January 21, 2010, the Lexum Group of companies, backed by ARX Equity Partners (“ARX”), completed the add-on acquisition of a 100% ownership interest in Intermedica. Intermedica was sold by Transmedica A/S. ARX has held a controlling stake in the Lexum Group since April 2009, when the company was acquired in partnership with the founder, Professor Martin Filipec.

Lexum is the leading player in the ophthalmology market in the Czech Republic. Lexum currently operates clinics in Prague, Ostrava, České Budějovice and Brno. In 2009, Lexum successfully performed over 12,000 cataract operations and over 5,000 laser refractive corrective procedures. Lexum is the clear Central European eye surgery market leader, both in terms of medical reputation and size.

Intermedica is the largest chain of private ophthalmology clinics in Poland. Intermedica operates clinics in Krakow, Poznan and Szczecin. Laser refractive corrections and cataract operations are performed in each of the clinic. Intermedica successfully performed a total of more than 3,700 ophthalmological surgical procedures in 2009.

Brian Wardrop, Co-Managing Partner, ARX commented:
„The ARX Warsaw office was a key catalyst for the origination and execution of Lexum’s acquisition of Intermedica. The transaction is representative of the firm’s ability to leverage its local presence throughout CEE.

ARX is delighted to be supporting Lexum’s strategic objective to grow and consolidate a leading position in the CEE ophthalmology market. The opportunities for knowledge sharing between the medical teams in the Czech Republic and Poland will enhance the group’s ability to provide superior eye care to patients in both countries.”

Financial details of the transaction were not disclosed.

Arx Equity Partners (“ARX”), the leading lower mid-market private equity firm focused on Central and Eastern Europe, has completed the € 102 M second close of its third fund, ARX III, on schedule to reach its € 125 M target. ARX III completed its € 83 M first close in October 2008 from a number of blue chip global financial institutions. ARX has been successfully investing in CEE since 1998.

The fund’s core focus continues to be succession-driven buyouts, where ARX has an established track record as a valued investment partner. ARX has a strong locally based team and has completed more buyouts to date than any private equity group in the CEE lower mid-market.

In recent years, CEE has become an increasingly attractive market for investment and, selectively, continues to offer risk-adjusted value creation opportunities. EU membership has brought financial stability for core CEE countries. The geographic proximity of CEE to the markets of Western Europe, coupled with highly skilled and lower-cost labour markets have contributed to rapid economic growth. In addition, the maturing legal and financial framework has enabled leveraged buyouts to become more established.

The lower end of the mid market offers a multiplication of investment opportunities compared to the larger end, with significantly less competition. ARX III has already made 2 investments; Kakadu, a leading Polish pet product retailer and Lexum, a healthcare business based in the Czech Republic. The fund will continue the proven investment strategy of previous funds, focusing on stable, cash-generative mid-market businesses across the CEE region. Equity investments in the fund will range between € 3 M – € 15 M, with deal enterprise values ranging between € 10 – € 50 M.

ARX, formerly known as DBG Eastern Europe, was sponsored by Deutsche Beteiligungs AG from inception through early 2008. ARX is now fully independent. Its first two funds, DBG I and DBG II raised € 46 M and € 67 M in 1997 and 2003 respectively. DBG I returned € 190 M net to investors, and ranks as one of the best performing funds in the CEE region. To date, DBG II’s current portfolio has demonstrated resilience to the current economic downturn, with no write-offs, limited write-downs plus three profitable full or partial exits.

Jacek Korpala, Co-Managing Partner, ARX commented:

„We perceive the current investment environment in CEE as particularly attractive for established investors who really understand the local market. Acquisition finance is still available in certain CEE countries, for lower mid-market deals, and while there are few alternative sources of exit liquidity, there are also a large number of business owners who have over-extended into non-core ventures. All of these factors play to our proven strengths.”

Brian Wardrop, Co-Managing Partner, ARX commented:

„We are delighted to have achieved the second close of ARX III, on target, and in an extremely difficult fundraising environment. Our ability to attract new investors, while continuing to maintain interest from investors in our earlier funds, shows the strength of our market leading track record, as well as the attractiveness of our investment model in the current environment. Even though ARX III is larger than our previous funds, we remain firmly focused on our target investment size and market, namely established small to mid-sized businesses across CEE.”

On April 23, 2009, Professor Martin Filipec and ARX Equity Partners (“ARX”) completed the leveraged acquisition of 100% of the Lexum Group of companies (“Lexum”). Lexum is the leading network of private ophthalmology clinics in the Czech Republic.

Lexum currently operates clinics in Prague, Ostrava and České Budějovice, with a Brno clinic scheduled to open in summer 2009. In 2008, Lexum successfully performed over 11,000 cataract operations and over 5,700 laser refractive corrective procedures. Lexum is the clear Czech private eye surgery market leader, both in terms of medical reputation and size.

Lexum was founded in 1993 by Professor Filipec, who was Chair of the Department of Ophthalmology at the Teaching Hospital and the 1st Medical Faculty of Charles’ University (Prague), following a fellowship at Harvard Medical School (Boston) and studies at Hôtel Dieu (Paris). Professor Filipec stated, “my partnership with ARX has created a streamlined ownership structure, which will provide a solid foundation for continued client service excellence, while facilitating the next growth phase for Lexum”.

ARX will work in partnership with Professor Filipec to expand Lexum both within the Czech Republic and potentially in other markets of Central and Eastern Europe. “ARX is privileged to work with the world-class team of medical professionals at Lexum; and we look forward to implementing the company’s growth strategy alongside Professor Filipec”, said ARX Co-Managing Partner Brian Wardrop.

Senior acquisition debt facilities for the transaction were provided by LBBW Bank (Czech Republic).

On March 6, 2009, ARX completed the acquisition of controlling stake in Kakadu Sp. z o.o. The investment is shared between the two funds managed by ARX: DBG Eastern Europe II LP and ARX CEE III LP.

Kakadu (www.kakadu.pl) is a leading pet products retail chain in Poland. The company operates 25 stores located in large cities.

ARX and the Kakadu management intend to strengthen the company’s market leadership by implementing operating improvements, the roll out of new stores and add-on acquisitions.

Kakadu is on track to exceed EUR 20 million in 2009 sales.

Lanex / Singing Rock Acquisition:

On September 26, 2008, Arx completed the acquisition of Lanex a.s. and Singing Rock s.r.o.

Lanex (www.lanex.cz) is a leading Central European producer of technical textile ropes and flexible packaging. The company’s strategy is increasingly focused on technologically advanced segments of the rope industry.

Singing Rock (www.singingrock.com) is a world-renowned player in the personal fall protection and climbing equipment market.

ARX and the Lanex and Singing Rock management teams intend to capitalize on the complementary strengths of each business with the aim of building a leading global player in the rope and climbing equipment market. The combined Lanex / Singing Rock business is on track to generate € 42 M in 2008 sales. Both Lanex and Singing Rock are headquartered in the Czech Republic.

ČSOB and UniCredit banks provided acquisition financing for the transaction.

Donit Tesnit Exit:

ARX is also pleased to announce the successful exit from Donit Tesnit doo, which was completed on September 1, 2008. ARX has exited its investment in Donit Tesnit doo via a sale of 100% of the company to an affiliate of Mohar Satler Investments. ARX generated a return of 3.0 times cash invested and an IRR of 58% on its 2006 investment in the company.