Polish Enterprise Fund V invests €17.5 million in retail chain

Polish Enterprise Fund V a private equity fund managed by Enterprise Investors has purchased a 47.7% stake in NAY, the leading white and brown goods retailer in Slovakia, from current shareholders. The investment by Polish Ennterprise Fund V totals €17.5 million.

NAY. was established in 1991 and currently operates a network of 13 modern stores in 11 cities under the “Elektrodom” and “NAY Elektro” trade names. NAY is the market leader in Slovakia in white and brown goods retailing with an estimated market share of 18%. The company’s stores are widely recognized for providing a broad range of quality products at low prices and a high level of customer service. In 2004, NAY generated revenues of more than €75 million.

The investment in NAY is Enterprise Investors’s second investment in Slovakia after its funds acquired a stake in Orange Slovensko in 2001, the leading Slovak mobile operator, as part of a consortium of financial investors. Slovakia is one of the best performing economies in the CEE region, and the Slovak market is poised for further growth as GDP and disposable income are on the rise.

Commenting on the transaction, Robert Manz, Partner at Enterprise Investors responsible for the investment, said: “NAY is an excellent retailer with an experienced management team. The company has a strong market position in Slovakia, which will be used as a base to develop in other countries in the region. Our involvement will provide additional support to carry out these expansion plans. We will contribute experience from our many other investments in the retail sector across the CEE region. We look forward to working with the company’s other shareholders who have driven NAY’s successful development to date.”

Peter Zlešk, NAY’s CEO and one of its founding shareholders, added: “We are pleased to have a new investor on board that can bring additional resources and support as we execute our strategic plan. Enterprise Investors is the most successful private equity investor in Central and Eastern Europe and their interest in NAY validates our position as a market leader in Slovakia and our positive future perspective. We believe their entry as a shareholder will be a major asset for NAY.”

Enterprise Investors is the largest private equity firm in Central and Eastern Europe. Active since 1990, the company manages funds with capital exceeding $1.1 billion. The funds managed by Enterprise Investors have invested $955 million in 100 companies in Poland, Slovakia, the Czech Republic, Romania and Bulgaria. EI’s funds have exited 77 investments to date at attractive rates of return.