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Private equity firm sells stake in Polish film extruder

By: EUROPEAN PLASTICS NEWS

January 1, 2014

ARX Equity Partners, a Central and Eastern European focused private equity firm, has sold its majority stake in Polish films extrusion group Ergis-Eurofilms SA.

The investment firm sold its shares in December in a series of block trades to investors on the Warsaw Stock Exchange.

In a statement, ARX said it originally acquired a majority shareholding in Warsaw-based Ergis-Eurofilms in 2003 in a leveraged management buyout transaction in partnership with Ergis managers Tadeusz Nowicki and Marek Gorski.

Since 2003, Ergis revenues have trebled to more than 153 million euros in 2012, according to ARX, and the company now generates more than half of its sales outside Poland.

ARX's investment in Ergis generated an overall internal rate of return of over 33 percent and 4.5 cash-on-cash multiple, said ARX.

Ergis claims to be the largest film extruder in Poland. Products include stretch films, shrink films, insulation and construction films, and rigid PVC film.