Prudentia organized one of the largest management buy-outs in Latvia
In 2012 with the help of Prudentia one of the largest and most significant management buyout deals in Latvia was successfully realized. In the transaction the owner of the leading do-it-yourself chain store SIA Depo DIY - SIA DMT Pluss - with the financial partners acquired the remaining share capital from the other owners. As a result of the deal, investment fund BaltCap and Byko Lettland ehf successfully sold their shares in SIA Depo DIY.
The transaction was financed by the private equity fund of ABLV Group, which after the transaction owned 25% of the share capital. The financial partner of this dea; was AS SEB Banka. This MBO deal was recognized as the Deal of the Year of 2012 in Latvia by the journal "Acquisition International".
Two years later, in 2014, ABLV investment fund sold its 25% shareholdin to the majority owner SIA DMT Pluss. After the transaction SIA DMT Pluss became the sole owner of SIA Depo DIY.
Ģirts Rungainis: Because of the very professional management of the company and well-considered strategy, Depo DIY is one of the largest private equity managed companies in Latvia
The company with sales of 200 million euros in 2016 by no means has a long standing history. It was established only in 2005 and since then has showed a "hockey-stick" growth. It is all thanks to the great management team.
It is not a surprise that with its fast growth the company has gone through many corporate finance deals. And we are proud to have been involved in several of them, even though it was quite challenging, because interests of all parties had to be taken into account: the existing investors, who wanted to end their investment cycle, existing partners who wanted to increase their share capital, the new investors and the banks.
To this day, the MBO deal, organized by Prudentia, it is one of the very rare management buy-out deals in Latvia.