ARX Equity Partners has sold TES Vsetín to Genesis Capital and Avallon MBO

TES Vsetín

TES Vsetín is a Czech Republic-based expert in the engineering and production of electric machines and components. The company’s solution offering ranges from individual components to special generators and motor systems used in the renewable and conventional energy, industrial automation, marine, railway and science industries, amongst others. TES Vsetín covers the complete value chain from development / design through machining and assembly to testing and certification.

The Deal

Lincoln International approached both financial and strategic potential buyers, creating significant interest in TES Vsetín amidst the challenging period of the deteriorating economic environment, increasing energy and raw material prices and disruptions in supply chains. TES Vsetín was ultimately sold to Genesis Capital and Avallon – private equity (PE) funds based in the Czech Republic and Poland, respectively, that are investing in the middle market space in Central and Eastern Europe.

Our Perspective

Witold Szymanski, Managing Director and Head of Austria and CEE at Lincoln, commented, “We are proud to have been able to deliver a successful transaction for the seller as well as the company and its shareholders in a challenging environment.”

Richard Floto, Managing Director in Lincoln’s Industrials Group, added, “The sale of TES Vsetín represents the second Czech-based electrical machines manufacturer and fits perfectly to the industrial technology platform.”

ARX Equity Partners

ARX Equity Partners (ARX) is a PE firm with more than a 25-year track record supporting the growth and development of mid-sized companies in Central Europe. With more than €300 million raised in four funds, ARX has become a leading PE firm in its segment in the Central European region. Headquartered in Prague, the firm’s activities are managed by an experienced and multinational team of investment professionals, combining a wide range of international expertise with in-depth local knowledge. These features enable ARX’s portfolio companies to realize their full potential while achieving superior returns for investors and partner entrepreneurs. Partnering with owners, managers and other co-investors, ARX focuses on later-stage growth-oriented investments, such as management buyouts and buy-ins and industry consolidation transactions across all sectors.

Genesis Capital

Genesis Capital is a PE group offering financing for growth and development to small-and-medium companies in Central Europe. Since its foundation in 1999, Genesis Capital has advised six PE funds with a total volume exceeding €350 million. These funds have already supported more than 60 companies.

Avallon MBO

Avallon MBO is an experienced and trusted investor in the management buyout field. For 25 years, it has been carrying out investments in Poland and CEE together with managers. It has participated in more than 100 transactions, and the total value of funds it has raised for investment purposes is more than €300 million.

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