The deal between PPG and private equity firm Axxess Capital, Deutek’s owner, is estimated at EUR40 million to EUR50 million.
ZF first reported about the sale of Deutek by Horia Manda-run Axxess Capital in July. This the firm’s third sale since the beginning of the year, after toy retailer Noriel and equipment rental company Industrial Access.
Deutek is one often largest paint manufacturers in Romania, with 131 million lei (about EUR30 million) revenue last year, up 7% on 2014. Last year was its fourth year of growth in a row.
The deal is now awaiting Competition Council approval. It is one of the most important US investments in Romania in the past few years and comes at time when the mergers and acquisitions market is very busy and also at a time of geopolitical changes.
“The decision to sell Deutek was a difficult one but was in line with EEAF’s (part of Axxess Capital i.e.) mission to pursue fast-paced growth strategies for its companies, to make them attractive to global actors in various industries (…),” Horia Manda says. The firm bought Deutek via its Emerging Europe Accession Fund (EEAF) from another private equity firm, Advent, at a discounted price in 2013, after Advent had paid EUR18 million for it. Back then, however, Deutek was in the red and its revenue stood at EUR26 million.
(English version by Loredana Fratila-Cristescu)