Entrea Capital advised Prista Oil Group in a transaction with ADM Capital and EBRD

Entrea Capital advised Prista Oil Group in a transaction with ADM Capital and EBRD

Entrea Capital advised Prista Oil Group in a transaction with ADM Capital and EBRD

Client: Prista Oil Group BV
Status: Private
Sector: Lubricants & Batteries
Revenue: €375mln
Web: www.prista-oil.com/en
Seller: ADM Capital / EBRD
Status: Private
Sector: Private Equity
Revenue:
Web: www.admcap.com / www.ebrd.com

Target: Prista Oil Group BV

  • Bulgarian conglomerate, operating in over 20 countries and active in two main business segments – production of automotive and industrial lubricants (Prista Oil), and production of car batteries and recycling of lead (Monbat Plc)

Acquirer: ADM Capital / EBRD

  • ADM Capital Description: Hong-Kong-based private equity fund, managing approx, $1.6 billion invested in 16 countries in emerging markets and operating through 7 offices worldwide
  • EBRD Description: owned by 63 countries and two international institutions, EBRD provides loan and equity finance, guarantees, leasing facilities and trade finance

Situation Overview & Solution

  • Gramercy Emerging Markets Fund, a private equity fund with a minority equity stake was looking to exit from Prista. In addition, a shareholder loan had become due and needed refinancing
  • Entrea Capital attracted ADM Capital who were joined by EBRD in a complex €60m transaction comprising of:The deal led to optimization of Prista’s corporate structure, improvement in operational efficiency and provided funds for regional expansionReplacement of minority shareholder
  • Refinancing of shareholder loan through a mezzanine facility
  • Raising €12m loan to finance capital investments
  • The deal led to optimization of Prista’s corporate structure, improvement in operational efficiency and provided funds for regional expansion

Entrea Capital’s Role and Value Added

  • Entrea Capital’s involvement benefited Prista in several aspects:
  • Identified and attracted the right buyer among several suitable candidates
  • Liaised with the buyer allowing Prista’s management to focus on running the company
  • Prepared management presentations communicating key transaction aspects in investor’s language
  • Engineered innovative deal structure that allowed Prista to strengthen its balance sheet
  • Provided expert advice during drafting of the transaction documents
  • Led an effective management of the process ensuring the parties kept firm focus on closing the transaction
  • Achieved multiple savings for the client through sharp negotiations 

 

Selected Commentary Post Close

“This is ADM Capital’s first investment in Bulgaria. In entering new countries we always seek companies with strong and stable market shares and an unwavering commitment from the company’s principal owners. We believe that Prista Oil satisfies all these requirements. We are delighted to be working with the EBRD in this project and we look forward to participating in the growth and development of the group in the years to come.”

Anthony Stalker, Partner and Head of ADM Europe, May 2012

“The Bank has developed a strong track record to provide long-term debt and equity restructuring solutions for manufacturing firms. This project will demonstrate the benefits of successful restructuring for other corporates in the EBRD region”

Jean Marc Peterschmitt, EBRD Managing Director, May 2012