“ADM Capital is delighted to partner with an excellent management team and aims to continue the growth of the company and its expansion into new market segments. This investment marks ADM Capital’s first deal in Romania, and based on the experience gained through our earlier two investments in the construction and brick industry in Turkey we are confident ADM Capital can create substantial synergies and help Ceramica to emerge as a regional leader,” Florian Huth, Partner of ADM Capital and Head of CEE/ CIS, stated.
Investment fund Advent International announced Tuesday that it has completed the sale of its 100% stake in EuroBrick International B.V (by which it controlled Ceramica Iasi) to ADM Capital, an investor in Asia and Central and Eastern Europe, without disclosing the terms of the transaction. Sources on the constructions market said that the transaction is estimated at over EUR10 million.
EuroBrick International B.V. owns an 85% stake in Ceramica Iasi.
“Advent acquired the business of Ceramica indirectly in December 2007 and since then has been working alongside the professionalized management team of Ceramica to grow the business both domestically and on an international scale, strengthening its market position. Ceramica has consolidated its market position and is now a key player in the construction materials market in Romania having increased its market share from 6 per cent in 2008 to 20 per cent in 2014 and expanding in to neighboring markets in Ukraine and Moldova,” an Advent release reads.
In 2007, Advent bought a 70% stake in Ceramica Iasi for EUR35 million, and it later increased its stake to 85%. Thus, the investment fund will recover less than 30% of the invested sum.
In 2013, Ceramica Iasi had 213 employees and a turnover of over RON72 million, from RON64 million in 2012, while its profit was below RON100,000, from RON2.2 million a year earlier.
Asia Dept Management administers assets exceeding $1.4 billion and has offices in Hong Kong, Istanbul, Mumbai, London, Beijing, Kiev and Alma-Ata.
Advent also sold generic drug producer Labormed to U.S. pharmaceutical company Alvogen for $33 million (EUR24 million), less than 20% of the acquisition price paid back in 2008, as well as decorative paints producer Deutek to Emerging Europe Accession Fund (EEAF) for an undisclosed amount.