Jet Investment completes the sale of TEDOM to Yanmar Group

(Prague, Czech Republic, October 31, 2024) Jet Investment has successfully finalized the sale of TEDOM, an energy-engineering group, to the global Yanmar Group. The transaction is one of the most significant mergers and acquisitions in the Czech market this year. For Jet Investment, this deal marks its most successful exit in size, with a nearly sevenfold return on the original investment.

Jet Investment entered the TEDOM group in 2019 through its Jet 2 Fund and became the 100% owner a year later. “We took over TEDOM with a clear vision – to transform it into a global player, and we have successfully achieved this goal,” says Marek Malík, Partner at Jet Investment. The sale of the group, which employs around 1,000 people and operates in both European and international markets, will be the largest project in Jet Investment’s history in terms of size, with a return of 6.8 times the original investment and an internal rate of return (IRR) of 44% per annum.

Under Jet Investment’s management over the past five years, TEDOM transitioned from being a manufacturer and provider of cogeneration units into a full-fledged provider of comprehensive energy solutions and services. Revenues have doubled, from EUR 160 million to a projected EUR 320 million this year. Oldřich Šoba, Project Director at TEDOM, commented: “We broadened our service and market offerings, navigating the company through challenges such as the global pandemic and the energy crisis. We turned these into opportunities, driving further growth through strategic acquisitions.”

One of the key strategic steps was consolidating the production of cogeneration units at the company’s facilities. In 2021 and 2022, TEDOM faced headwinds due to declining demand for gas and cogeneration units during the energy crisis. However, as Šoba noted, “We successfully turned these obstacles into growth opportunities.” Jet Investment invested in digital infrastructure, developing a cloud-based platform that connects cogeneration units into a virtual energy block. This allowed TEDOM to combine various decentralized electricity and heat production sources, providing regulatory services to the transmission system operator.

During Jet Investment’s ownership, TEDOM expanded its global footprint, establishing or strengthening its sales and service organizations in the U.S., UK, Poland, and Kazakhstan. In 2021, Jet Investment also acquired a small energy supplier, which grew into a mid-sized player under the TEDOM energie brand, serving over 50,000 customers. Earlier this year, TEDOM formed Polimex Energo, a joint venture with a Polish partner, to build and operate a portfolio of cogeneration units in Poland as part of the country’s large-scale decarbonization initiative. Additionally, TEDOM reinforced its market position by acquiring Italian cogeneration manufacturer Intergen.

 “We are now handing TEDOM over to a strong strategic partner, Yanmar, who will further accelerate its growth within their global portfolio,” added Malík.

The sale of TEDOM is the first exit from Jet Investment’s Jet 2 Fund. With an investment horizon ending in 2028, the fund’s portfolio still includes other energy sector leaders such as 2JCP (Czech Republic), Rockfin (Poland), and the printing group EDS. Jet Investment currently has EUR 128 million in capital available for industrial acquisitions via its Jet 3 fund (total fund size of EUR 160 million) and plans to raise an additional EUR 50 million for its new Jet Venture 1 fund, targeting B2B industrial startups.

Jet Investment received legal advice on the TEDOM divestiture from DRV Legal, with a team led by Tomáš Rada and Tomáš Antal, and from PwC Czech Republic, represented by Jan Hadrava, Daniel Janeček, and Dominik Kohut.
 

About Jet Investment

Czech-based Jet Investment a.s., founded in 1997, is a leading Central European private equity firm specializing in Central European industrial investments. Through its three qualified investor funds, Jet Investment manages assets totalling EUR 600 million, including uncalled capital.
The Jet 2 and Jet 3 private equity funds focus on mid-sized Central European industrial companies with strong growth potential. Their portfolio includes companies such as 2JCP, ROCKFIN, FIBERPREG, EDS GROUP, and LIKOV, employing approximately 3,000 people. Jet Investment has a successful track record of managing and divesting industrial manufacturing companies, including KORDÁRNA Plus, MSV Metal Studénka, Benet Automotive, PBS Power Equipment, and LESS&TIMBER.
The Jet Industrial Lease fund invests in industrial real estate and manages a portfolio of nine properties across Germany, the Czech Republic, and Poland.
Founded in 2024, the Jet Venture 1 fund invests in B2B industrial startups.
Jet Investment is led by four partners – Igor Fait, Marek Malík, Lubor Turza, and Libor Šparlinek – and its projects and investments are managed by an international team of more than 30 experts in the Czech Republic (Prague, Brno) and Poland (Warsaw).

More information can be found at www.jetinvestment.eu