Dragon Capital Advises Abris Capital on Acquisition of Retail Assets in Western Ukraine
Kyiv, October 6, 2010 — Abris Capital Partners, the leading mid-market CEE-focused private equity group, announced on October 6 this year that it had acquired key retail assets of Torgovyi Svit from Roveks, a Ternopil-based wholesale distributor, in return for the settlement of bank debts with a number of Ukrainian banks and for assumption of supplier debt associated with the retail assets.
The 17 Torgovyi stores will be rebranded as “Barvinok,” Abris’ existing Western Ukrainian food retailer. The Barvinok chain will now total 43 stores.
The acquisition was completed following lengthy restructuring negotiations with the owners, creditor banks, and suppliers.
Commenting on the restructuring transaction, Roberta Brzezinski, a Partner at Abris, said: “This transaction represents a meaningful step forward for Barvinok, Roveks, and the creditor group. We hope to continue the growth of Barvinok in Western Ukraine.”
Michael Harrison, Barvinok CEO, added: “We are looking forward to bringing Barvinok’s approach of unrelenting focus on the customer and customer value to Ternopil.”
Throughout the transaction, Abris was advised by Dragon Capital. Andrei Pivovarsky, Director of Investment Banking at Dragon Capital, commented: “To our knowledge, the Roveks transaction represents the first successful post-crisis restructuring in the food retail sector in Ukraine.”
Abris received acquisition financing from WorldBusiness Capital, Inc. (WBC) a US lender that provides loans to small and midsize businesses in emerging markets throughout the world. WBC’s loan was supported by the Overseas Private Investment Corporation, an agency of the U.S. government that fosters economic development in new and emerging markets.
About Abris Capital Partners
Abris Capital Partners is a leading independent private equity fund manager, focused on mid-market opportunities in the major countries of Central and Eastern Europe (CEE).Established in 2007, Abris seeks to identify, and partner with, the most successful and dynamic mid-market businesses in Central and Eastern Europe. With investment capital of over €320 million, Abris has obtained financial backing from many leading global investment institutions including corporate and public pension plans, financial institutions, insurance companies and US university endowment funds. Abris typically invests in mid-market companies which can benefit from an input of capital and/or management expertise at both strategic and operational levels. The company has a long-term investment horizon and expects to hold investments for approximately three to five years. The Abris business operates using regionally-based teams, operating from local offices in each of its key target markets. Abris was founded by its two Managing Partners - George Swirski and Neil Milne - and has a team of 15 professionals operating from offices in Warsaw, Kiev and Bucharest.
For more information please contact us at [email protected].