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5_Case studies

Industry is in our blood

We have been dedicated to helping industry for 24 years. We have successfully completed and exited 18 projects.

We understand the needs of small and medium-sized enterprises. In addition to the nine companies currently held, we have completed 18 projects. We have restructured and developed companies in trouble. We have helped businesses grow.

Case Studies

MSV Metal Group

BENET AUTOMOTIVE

KORDÁRNA Plus

Českomoravský len, a. s.

MSV Metal Group

Company at takeover – January 2013

Jet Investment took over MSV Metal, a direct successor to the former Vagónka Studénka, in January 2013. Europe's leading manufacturer of die forgings, stampings, bumpers, pull hooks, screw couplings and drawbars for railway and other industries, it had gone into insolvency in May 2011 due to difficulties of previous shareholders. Reorganization of the company began in July 2011. It was one of the most significant court-approved reorganizations of a manufacturing company in the Czech Republic. When taking over the company in January 2013, Jet Investment set the following goals: to stabilize the company, to develop the subassembly segment, to maximize utilization of the production capacities, and to consolidate the market.

Company at divestment – February 2020

Jet Investment's eight-year tenure as owner culminated in the successful sale of MSV Metal Studénka. The insolvent company into which Jet had invested has become a market leader with an excellent reputation, be it for quality, reliability, or the capability to develop new products. Among the most important of these were new types of bumpers and screw couplings. Indeed, MSV Metal was the only company on the market that managed to deal with the requirements of new standards for screw couplings. Among other reasons, all these goals were achieved due to trust placed in the company's management and the development plans it put forward. Investments into technology and products totalling EUR 15 million also contributed significantly to growth. In particular, investments were made in setting up a paint shop, in a heat treatment line, as well as in CNC capacities and GO forging units. Jet Investment also supported employee satisfaction, as evidenced by growth in the average wage for manual occupations and MSV Metal’s excellent reputation as one of the best employers in its region. Another significant impetus was the acquisition of a Polish competitor, KUŹNIA OSTRÓW WIELKOPOLSKI, whose forging operations brought additional capacity, access to the Polish market, a new product, and overall greater confidence in dealing with customers. During its ownership, Jet Investment also succeeded in bringing in a number of new customers.

Outcome

In eight years, MSV Metal Studénka became a profitable company that is investing in technology and paying its employees well. It is a company with an order book at record levels, operating at full production capacity, and with a clear vision of how to develop further and where to invest. The new shareholder, Moravia Steel, is without doubt a strategic investor that will continue in developing MSV Metal and which will benefit significantly from synergies with the rest of the companies within the holding.

Investment returns

The investment produced a 5.54× gross multiple of invested capital. The group's revenues grew from CZK 706 million to CZK 1.3 billion, EBITDA from approximately CZK 96 million to CZK 200 million. At the same time, the average salary at MSV Metal rose from CZK 28,000 to CZK 38,000.

 

 

 

 

BENET AUTOMOTIVE

Company at takeover – September 2017

Jet Investment acquired BENET AUTOMOTIVE in 2017, purchasing it directly from the company’s founder. Although BENET AUTOMOTIVE had by that time experienced many years of growth, the company lacked a management system that would enable its effective governance. That hampered further development of the company, which had annual revenues of around CZK 1 billion. Managed up to that time directly by its owner, the firm did not have a professional management team. For Jet Investment, this was a strategic investment that advantageously complemented the existing acquisitions of companies producing and processing carbon materials.

Company at divestment – August 2019

Company at divestment – August 2019

In a relatively short time, Jet Investment succeeded in building a new management team and starting to set up efficient management methods. Jet launched transformation of the company so that it would be organizationally prepared for the future growth made possible by robust market demand for BENET’s products. The company had started a number of investments, be it increasing the capacity of autoclaves, in CNC machining, in acquiring stamping technology for carbon parts and software for product monitoring and production management. Centralization of carbon parts manufacturing and a new production layout at the main plant in Milovice also contributed to BENET’s consolidating its position as a stable Tier 1 supplier to the automotive industry.

Outcome

In 2019, BENET AUTOMOTIVE was taken over by the Japanese technology company Teijin Limited to play an essential role in Teijin’s European automotive expansion. Teijin is a global leader in the development, production, and sale of high-tech materials and products.

Investment returns

The sale of BENET AUTOMOTIVE to a strategic partner was a relatively quick but efficient result of Jet Investment’s entering the project.

KORDÁRNA Plus

Company at takeover – May 2010

Jet Investment, together with other financial partners, took over 100% ownership in Kordárna Plus, Kordservice, and Technické úklidové služby, and a minority share in Texiplast. This group of companies was at that time insolvent. Subsequently, in 2011, Jet Investment took over full ownership in Slovkord Plus. This was historically the first court-approved cross-border business reorganization in the Czech Republic, and later it was regarded as one of the most successful reorganizations generally. The company with a 75-year history had gotten into trouble during the financial crisis due to its inability to repay debts related to massive unfinished investments into manufacturing of its own fibre at the Senica plant. That plant had had to be closed down completely in 2009, the textile plant in Velké nad Veličkou was laying off workers, and it had lost most of its clientele among leading tyre manufacturers.

 

Company at divestment – October 2018

Jet Investment held Kordárna Plus in its portfolio for more than 8 years. During that time, it successfully stabilized the company, combined the production operations for geotextiles and geogrids into the Slovak Texiplast and subsequently sold that off to a strategic investor, shut down inefficient parts of the business, split off non-productive assets, unified the fractured structure of the company under Kordárna Plus and Kordplast, and, above all, implemented a strategy supporting further growth. During this period, the investment into production of its own technical fibre was also successfully completed and production of an entirely new product – high-tech carbon textiles – was initiated. Sales of cord fabrics tripled between 2010 and 2018, and the company succeeded in maintaining its position on the market in sales of technical fabrics for conveyor belts despite a slump in the customer market. EBITDA grew from CZK 56 million in 2010 to almost CZK 280 million in 2018. Kordárna also contributed substantially to the regional employment, increasing the number of employees by 250 under the Jet Investment management.

Outcome

In October 2018, Jet Investment sold Kordárna and Kordplast to the Thai petrochemical giant Indorama Ventures. Under Jet Investment's leadership, Kordárna, with its two production plants in Velké nad Veličkou, Czech Republic, and Senica in Slovakia, became a top European producer of cord and technical fabrics with potential annual production capacity of up to 50,000 tons. Kordárna’s production, which is fully integrated within its plants from fibre to fabric, is exported to more than 15 countries in Europe, North and South America, and Asia. Kordárna also has a strategic position in the heart of Europe's automotive industry, with key manufacturers of tyres and cars being located within a 500 km radius. Consolidation of Kordárna within the new owner’s petrochemical activities will lead to its future growth and importance on the global market.

Investment returns

The investment produced a 5.75× gross multiple of invested capital. It is among the most successful projects in the history of the Brno-based investment company.

Českomoravský len, a. s.

Company at takeover – February 2000

As of our takeover, the company was operating at a loss. Its organization was divided into three independent production operations: paper impregnation and lamination of panels for the furniture industry, processing of flax stems in its own flax processing plants, and metalworking while developing its own line of simple agricultural machines.

Company at divestment – March 2001

First, we stabilized the company by closing down the unpromising metalworking operation and reducing the number of administrative employees. That allowed us within one year to find strategic partners for the two remaining divisions. The lamination, including the know-how, production assets, and real estate, was included into the production portfolio of one of the largest manufacturers of wood fibre and MDF panels, Dřevozpracující družstvo Lukavec. The flax processing division, including most flax processing plants, found an owner in a company established and owned primarily by flax growers.

Outcome

Through Jet Investment’s restructuring steps, we succeeded in separating the healthy divisions out of a non-functioning company while in large measure preserving the traditional production and jobs of a failing business.

Investment returns

The project produced a 3.9× gross multiple of invested capital.

 

ZPA Nová Paka, a. s.

Moravské autoopravny, a. s.

LESS & TIMBER

Sběrné suroviny, a. s.

ZPA Nová Paka, a. s.

Company at takeover – August 2001

Jet Investment entered into the failing company ZPA Nová Paka when its existing management was unable to implement a business plan to take the company out of its crisis. The lending bank had contributed to escalating the situation by demanding immediate lump-sum repayment of a loan, thereby putting the company at risk of bankruptcy.

Company at divestment – November 2007

The new crisis management installed by Jet Investment prepared a plan for taking the company out of bankruptcy. Its main parameters included negotiating credit with another bank, reducing the number of employees to be in proportion to revenues actually achieved, establishing a proper sales and pricing policy, putting unnecessary assets to their best use, and, most importantly, developing the main production programme, because its manufacture of measurement and regulation technology for industrial use was evaluated as highly promising.

Outcome

By implementing the recovery plan, a company that had been operating in long-term losses succeeded in building a solid position on domestic and foreign markets. It maintained a continuously high quality of production and successfully negotiated a rigorous certification process so that its production programme could serve the nuclear energy segment. ZPA Nová Paka is successfully continuing in its business activities. It is developing and improving its main production programme having a tradition of more than 72 years.

Investment returns

The project’s produced a 6.8× gross multiple of invested capital.

Moravské autoopravny, a. s.

Company at takeover – October 1998

As soon as we entered Moravské autoopravny, it was apparent that this company, one of the successors to ČSAD, the formerly state-owned Czechoslovak transport enterprise, with a production programme narrowly focused on general servicing and refurbishing of Tatra trucks, could not prevail in the new conditions. It faced a number of smaller competitors which could offer similar services at similar quality and with much lower costs. Moreover, the problems of Tatra itself also had negative effects on the company’s operations.

Company at divestment – February 2002

We successfully executed an investment plan to terminate production activities and sell the assets of the company’s extensive premises.

Investment returns

The project produced a 4× gross multiple of invested capital.

LESS & TIMBER

Company at takeover – January 2015

Jet Investment acquired the wood-processing enterprise LESS & TIMBER in 2015 through insolvency proceedings and thereby became the sole owner of one of the most modern coniferous wood processing plants in the EU. It was a relatively healthy company but had fallen into trouble due to the original owner’s inability to make repayment on costly investments. For Jet Investment, it was a strategic investment with substantial growth prospects.

Company at divestment – June 2018

With three geographically distant sawmills and a wood processing plant, the business was in need of restructuring and rationalizing of its operations. In under four years’ time, Jet Investment freed the company of unnecessary assets, and, through investing into a new production hall at the Čáslav premises, it concentrated LESS & TIMBER’s crucial sawmill operation and glued timber production at a single location. That not only succeeded in increasing annual glued timber production from 15,000 m3 to 20,000 m3 but also achieved synergies in costs and other areas.

Outcome

In 2018, the company was purchased by the Czech investment group Prosperita Holding. LESS & TIMBER, with its more than 300 employees, thereby was brought under the control of a strong strategic partner that intends to further develop production and the number of jobs.

Investment returns

The project produced a 6.3× gross multiple of invested capital which means it was one of Jet Investment’s most successful investments ever.

 

Sběrné suroviny, a. s.

Company at takeover – August 1999

Sběrné suroviny was in the business of collecting and sorting recyclable waste and then selling secondary raw materials. The company also centrally managed dozens of regional centres running hundreds of local secondary raw materials purchase points. Such a burdensome organizational structure was preventing the company from earning sufficient profit.

 

Company at divestment – March 2001

After breaking up the company into individual centres, we sold most of them to secondary materials processors and traders (e.g. Remat and ASA). Certain of the less appealing purchase points were sold directly to their employees.

Outcome

Even despite that the business activities of the original company were terminated, the business is successfully developing under new owners.

Investment returns

The project produced a 2.9× gross multiple of invested capital.

 

Our successful divestments

Company Industry Acquisition Divestment
PAYMENT4U Electrotechnical and software July 2016 April 2020
MSV Metal Group Railway rolling stock January 2013 February 2020
BENET AUTOMOTIVE Automotive, carbon materials September 2017 August 2019
KORDÁRNA Plus Technical textiles, specialty chemicals May 2010 October 2018
LESS & TIMBER Wood processing, power engineering January 2015 June 2018
Texiplast, a. s. Geosynthetics April 2010 September 2013
Avízo, s. r. o. Packaging August 2008 March 2013
Rolofol, s. r. o. Packaging January 2008 November 2011
ZPA Nová Paka, a. s. Electromechanics August 2001 November 2007
Jitka, a. s. Textiles September 2005 September 2007
Hutní montáže, a. s. Heavy engineering August 2002 March 2005
Adast Blansko, a. s. Engineering March 2004 October 2004
Vinium, a. s. Food and beverage July 2001 April 2003
Moravské autoopravny, a. s. Auto service, automotive October 1998 February 2002
Českomoravský len, a. s. Textiles February 2000 March 2001
Sběrné suroviny, a. s. Waste collection and recycling August 1999 March 2001
Kornolit, a. s. Plastics production April 1998 February 2000