A group of financial investors from Poland acquired a 45% stake in the Delta Distribution company, one of the largest national distribution networks of construction supplies, market sources told ZIARUL FINANCIAR.
The transaction was carried out through a special purpose vehicle created for the acquisition, Weston Holdings BV. The value of the transaction is in the range of several millions of euros, yet lower than 5 million euros, sources in the industry reckon.
Delta Distribution shareholders have been courted by a number of financial and strategic investors over the last few years, which want to position themselves on a market with a double digit growth per year.
Five individual shareholders sold their stakes to the Dutch at SPV, behind which are banks, institutional investors, and investment funds managed by a Polish company.
Delta Distribution is now controlled by Dragos Bonea, the chairman of the company and the majority shareholder with 51.6%, while Weston Holdings BV owns 45.3% and the rest belongs to several people in the management team - Octavia Savu (2.6%), Antonel Olteanu (0.26%) and Claudia Goran (0.26%), according to data in the Official Gazette.
The Delta Distribution business was established in 1996, operating on the market of imports and distribution of products for interior decorations and finishes.
The company''s strategy was to build a specialised distribution network to cover the entire country.
Delta Distribution made gross profit worth 0.3 million euros against a 23.4 million-euro turnover, an increase of 25% from 2004. The company, which has 500 employees, is now carrying out a plan to expand the store network. The volume of business has increased since the establishment of the company as operations expanded, reaching a growth pace of as much as 80% a year at times. Turnover went up ten times between 1998 and 2004, but the profit margin stayed relatively low, which is not uncommon among distribution networks.
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