The London-based firm is backing a management buyout of the printing company, which also has operations in Poland and Hungary, 3i Group Plc said in a statement today. The deal values Euro-Druckservice AG at more than €200 million ($266 million). 3i is expanding into central Europe as competition in western Europe makes it harder to repeat past returns. Along with rivals Advent International Corp. and Mid Europa Partners, 3i is also trying to profit from economic growth in the region that’s outpacing the dozen nations sharing the Euro.
Euro-Druckservice „is an outstanding example of a fast growing business in a market that has equally exciting prospects,” said Wolf Wolfsteiner, the partner who led the takeover for 3i. Buyout firms have announced an unprecedented $4.6 billion of takeovers in central and eastern Europe in the past year, according to data compiled by Bloomberg. Permira Advisers LLP, Europe’s biggest buyout firm, bought Borsodchem Nyrt last year in a deal that valued eastern Europe’s No. 1 maker of PVC plastic at more than $1.1 billion. 3i plans more deals in the region. Stuart McMinnies, a London-based partner at 3i, will lead a new team that will focus on takeovers in central and eastern Europe. The firm also hired Zoltán Tóth from Advent International. He will be based in Budapest and London. Buyout firms use their own funds and debt secured on the companies they acquire to pay for takeovers. They typically seek to expand companies or improve their performance before selling them within five years to other funds or investors. (Bloomberg)
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