Sale of 100 % stake in the company ELCOM, a.s.

VGD Corporate Finance acted as the exclusive financial advisor to the owners during the sale of a 100 % stake in the company ELCOM, a.s. The new owners were long-time managers of the company in partnership with the investment fund CENTRAL EUROPE INDUSTRY PARTNERS. The aim of the transaction was to find a suitable partner for the further development and expansion of ELCOM, a.s., a leading Czech company engaged in the development, production and implementation of projects in the field of industrial automation, power electronics and heavy-current electrical engineering. Paul Kaye, former President of ROLLS-ROYCE PLC for Central Europe, with more than 20 years of experience in business development (from aircraft engines to nuclear reactors), has become the new chairman of the board.

ELCOM, a.s. covers the whole process of development, production, final installation and service of (i) automated measuring and testing systems, (ii) electricity quality monitoring systems, industrial tester and cameras systems, (iii) special power supplies of a wide range of voltage and power outputs, and (iv) distribution and compensating devices for low and high voltage industrial networks. The company was incorporated in 1990 by founders Ing. Jiří Holoubek and Ing. Vladimír Korenc as a limited liability company. At present, the company is based in modern production and operating buildings in Prague, Ostrava, Brno and Bystřice nad Pernštejnem.

The main customers of the company are mainly multinational and domestic customers in the fields of railway transport, automotive industry and electrical engineering. ELCOM, a.s. reaches sales of 300 mil. CZK with an average EBITDA 45 mil. CZK, with its 165 employees.

CENTRAL EUROPE INDUSTRY PARTNERS, a.s. focuses on strategic investments in Czech industry. CEIP´s goal is to be a reliable partner for the owners of selected companies and to assist them in the further development of their companies. Their first project was the acquisition of Jihlavan a.s., followed by an investment in the engineering company ROKA Industry.

The transaction was successfully completed in May 2018.