ADM Capital, the international private equity fund with 20 years of experience in emerging markets, acquired a 98 percent stake in Brikston Construction Solutions SA (Brikston) in July 2014 and has agreed to sell its full shareholding to Wienerberger AG of Austria.
ADM Capital invested in Brikston through its flagship CEECAT Recovery Fund launched in 2011. This represents another in a series of recent exits for the CEECAT Recovery Fund, a preparation for the launch its follow-on CCL CEECAT Fund II in early 2018.
Anthony Stalker, partner of ADM Capital, said: “this transaction marks a milestone in the growth of ADM Capital’s European business, showing our proven ability to execute sound investments, achieve strong valuation growth and make exits in the Balkan region leaving behind a stronger and healthier business after our investment. We are particularly pleased at the prospect of Wienerberger’s acquisition taking on the baton of further growth for Brikston’s management and staff as it continues its success in the Romanian market.”
The completion of the transaction requires the approval of the competition authority; pending such approval, the two companies will continue to conduct their businesses separately. They agreed not to disclose the purchase price.
Established in 1967 as a state entity and privatized in 1994, Brikston is a brick producer in Romania. Brikston has a wide product portfolio consisting of hollow bricks, full bricks, façade and decorative products in various colors and dimensions.
The headquarter of the company is in in Iasi and generated sales of around EUR 16 million in 2016 with its large distribution network targeting most of Romania, as well as exports to Moldova and Ukraine.
ADM Capital acquired Brikston in July 2014 and has improved operating profit by more than 60 percent during its three years of ownership.
ADM Capital was advised within the transaction by law firm RTPR Allen & Overy.