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5_Case studies

Industry is under our skin

We have been dedicated to helping industry for 20 years. We have successfully divested 13 projects.

We understand the needs of small and medium-sized enterprises. In addition to the 13 companies currently held, we have completed 13 projects. We have restructured and developed enterprises in trouble. We have helped business grow.

Case Studies

LESS & TIMBER

Českomoravský len, a. s.

Sběrné suroviny, a. s.

ZPA Nová Paka, a. s.

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 100% 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 repay high investments. For Jet Investment, it was a strategic investment with substantial growth prospects.

Company at divestment - June 2018

The business with three geographically distant sawmills and a wood processing plant 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 return realized was 6.3 times the original investment, which means it was one of Jet Investment’s most successful investments ever.

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 to separate 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 returns led to the project’s appreciating to 3.9 times the initial investment.

Sběrné suroviny, a. s.

Company at takeover - August 1999

Sběrné suroviny collected, sorted, and then sold secondary resources. The company also centrally managed dozens of regional centres managing hundreds of local secondary resources 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 trading activities of the original company were terminated, the business is successfully developing under new owners.

Investment returns

The returns led to the project’s appreciating to 2.9 times the initial investment.

ZPA Nová Paka, a. s.

Company at takeover - August 2001

Jet Investment entered into the failing company ZPA Nová Paka when its current management was unable to implement a business plan to take the company out of its crisis. The lending bank 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 the 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 the domestic and foreign market. It maintained a continuously high quality of production and successfully certified its production programme to serve the nuclear energy segment. ZPA Nová Paka is successfully continuing in its business activities. It is developing and improving its main production programme with its tradition of more than 72 years.

Investment returns

The returns led to the project’s appreciating to 6.8 times the initial investment.

Moravské autoopravny, a. s.

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 closely 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 completed the investment plan to terminate production activities and sell the assets of the company’s extensive premises.

Investment returns

The returns led to the project’s appreciating to 4 times the initial investment.

How many companies did we successfully sell

Company Field Acquisition Divestment
LESS & TIMBER woodworking industry, power engineering January 2015 June 2018
Texiplast, a. s. Geosynthetics April 2010 September 2013
Avízo, s. r. o. Packaging industry August 2008 March 2013
Rolofol, s. r. o. Packaging industry January 2008 November 2011
ZPA Nová Paka, a. s. Electromechanics August 2001 November 2007
Jitka, a. s. Textile industry 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 industry July 2001 April 2003
Moravské autoopravny, a. s. Auto service, automotive industry October 1998 February 2002
Českomoravský len, a. s. Textile industry February 2000 March 2001
Sběrné suroviny, a. s. Waste collection August 1999 March 2001
Kornolit, a. s. Plastics production April 1998 February 2000