The management of listed Zetkama, the producer of industrial fittings, signed agreement to acquire Srubena Unia, Europe’s leading producer of joint elements. This is the first step of founding a capital group around companies owned by Avallon MBO fund and people connected with it. “PB” informed about these plans several months ago.
“We assume that Srubena acquisition will take us six months”, Leszek Jurasz, Zetkama CEO said.
In the first stage, Zetkama’s shareholders will agree to issue new shares. The latter will be given to Srubena owners. Zetkama will pay 1m shares (or slightly over 20 percent of the increased capital) and over PLN 3.1m (EUR 833,900) in cash for up to 100 percent of Srubena. The latter evaluates the transaction at PLN 26.8m. In 2006, Srubena had PLN 80m of sales and PLN 3m of net income.
In the acquisition, a group with PLN 100m of capitalization and PLN 160m of annual sales will be founded. Leszek Jurasz estimates that the joint income of the merged companies should be a double-digit one.
(PLN 1 = EUR 0.269)