Swedish investment fund Oresa Ventures bought a stake in the paints and varnish maker Guzu Chim, one of the top three players on the market, in a 9 million-euro deal.
Sources on the market say that the investment fund took over almost 49% of Guzu Chim, following a direct acquisition of shares along with a contribution of capital to the company.
However, the founder and general manager of the company, Daniel Guzu and his wife will remain in control of the business.
The company''s minority shareholders Viorel Berbec and Ioan Cobzaru were involed in the sale of shares to Oresa Ventures.
"The capital contribution from Oresa will help us finalise investment plans," says Daniel Guzu, the man who set up the Guzu Chim business in 1994. He will continue as general manager after the financial investor becomes a shareholder.
Besides buying a minority stake, Oresa will control 49% of the company as a result of a capital contribution and of an investment in completing a new production facility and in expanding the national distribution network, Guzu Chim officials say.
Oresa representatives did not say how long they planned to stay in the Guzu Chim business. "We have just signed the agreement to join forces with Guzu Chim so it is too early to talk about an exit deadline. We are currently focusing on the most effective ways to boost performance and help it consolidate its position on the market," stated Erik Hallgren, Oresa''s chief executive.
Guzu Chim was started in 1994 and is owned by businessman Daniel Guzu who has a 51% share. The company currently has 380 employees, about 100 more than in 2004. Guzu Chim accounts for 18% of the decorative paint market at the moment.
The paint maker estimates some 125 million RON (34 million euros) turnover for this year, an increase from the 92 million RON (25.2 million euros) derived in 2005.
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