Budlex Sp. z o.o.: sale to Erbud S.A.
- On 28th of July 2007 Budlex Group shareholders had signed the conditional agreement on sale of 75% stake in Budlex Sp. z o.o. (holding company of the group) to Erbud S.A. for a total consideration of PLN 47,5m. Transaction was finalized on 27th of September after deal conditions came true.
Budlex Sp. z o.o.
- Budlex Sp. z o.o. is the biggest and most recognized housing developer in Kuyavian-Pomeranian region. From its origin in 1987 to end of 2006 year, Budlex Group built ca 4 thousands of apartments, mainly in Toruń and Bydgoszcz, and most recently in Warsaw agglomeration as well.
- Budlex Group is well integrated and effectively administrated. Except from its real estate development business, it provides building services, produces steel constructions and elements, and offers property management. Complexity of the range of provided services by group’s components is essential comparative advantage, which enables Group to retain considerable part of margin due to having both building and development services in scope of activities conducted. Budlex Group is the employer for almost 470 people.
- In 2006 group’s consolidated revenue was PLN 71m, EBITDA – PLN 9, net profit – PLN 5m.
- Erbud S.A. is all-Poland range construction company, publicly traded on Warsaw Stock Exchange since 11th of May 2007.
- The most spectacular recently completed by Erbud S.A. projects list includes: Copernicus Shopping Mall in Toruń, Miasteczko Wilanów housing and Pasaż Wiecha revitalization in Warsaw.
- In 2006 Erbud S.A. had PLN 426m in consolidated revenues and net profit of PLN 20m.
Role of Navigator Capital during the transaction
- Navigator Capital prepared Budlex Group valuation and subsequently managed the process of finding a strategic investor as the seller’s financial advisor.
- Our main objectives:
- Organizing and conducting the selection process,
- Supervision and coordination of legal and sales advisors activities,
- Proposition of: optimal transaction structure, effective mechanisms of influencing the management and optional program for shareholders remaining in company as key minority stakeholders.