Company focused on the wholesale of packaging technology for industry

Basic information

The subject of the sale is a 51 to 100% stake in a Czech company, primarily engaged in the wholesale of packaging materials and packaging technologies. The company has been on the market for more than 30 years, currently the company is fully owned by the founder. The company has a very good market position in the region, achieves a stable turnover and generates above-standard added value for its customers.

The main activity of the company is wholesale activity, the product portfolio includes, for example, packaging tapes, cardboard, foamed polyethylene, stretch and PE films, bubble films, etc. The company has a diversified portfolio of stable and returning customers. The customer portfolio is diversified, so dependence on customers is very low. The company’s typical customers are mainly manufacturing companies from the Czech Republic, Slovak Republic and to a lesser extent from Germany and the EU.

The company manages to achieve a stable gross margin of approx. 20-25 million CZK per year, even with a temporary decrease in sales. The company does not use any bank loans or leasing. There is currently no need for any investments in the Company, in the next few years it is expected that there will be practically no need for maintenance or other investments. From the beginning of 2023, a decrease in demand can be observed in the packaging materials market associated with the overall macroeconomic development in the industry and some uncertainty in the market. In particular, this led to a year-on-year lower turnover of the Company. For the first half of the current year, despite the cooling of the market, the Company expects sales at the level of CZK 40+ million with a standard amount of margin. The owner expects the market to restart in the second half of 2024.

In the Company, the owner mainly deals with communication with clients, strategic management of the company and occasional operations. Currently, the owner has decided to take steps to identify a strategic investor operating in the field of production and sale of packaging materials, or a strong investor from the industrial sector, who would be able to strengthen the company’s market position after the acquisition and, thanks to the synergies created, start its further growth. Incorporating the company into the group of a stronger strategic investor could help the company stand out more among competing companies on the market. Therefore, before revealing the identity of the company, we will require the interested party to present the motivation for the acquisition of the company, so that we can assess what type of synergies the potential investor will be able to bring to the company.

Overview of the company’s financial results