Balkan Accession Fund (BAF), a private equity fund, has acquired a 99.8 percent stake in Frigotehnica. The transaction has been structured as a leverage buy-out for EUR 25 million and consists of the share purchase as well as a direct investment into the company. Alpha Bank secured the related debt as Frigotehnica’s custom lender. The deal gives BAF the controlling share of the refrigeration equipment installation firm.
Frigotehnica, based in Bucharest, holds a 75 percent market share on commercial refrigeration equipment in Romania, as well as an expanded interest in Bulgaria. The company is expecting a turnover of EUR 46 million, up from its 2007 rate of EUR 38 million.
Balkan Accession Fund (www.bafund.net)
BAF is a EUR 110 million private equity regional fund operating in Romania and Bulgaria. The company targets investments into mid-sized private companies. It positions itself to capitalize on the economic growth with the Romanian-American Enterprise Fund and the Bulgarian-American Enterprise Fund.
BAF has been working in the private equity investment market since 1995, taking advantage of the emerging marketplace of Southeastern Europe. BAF Typically invests, through equity and/or mezzanine financing. BAF focuses on investing in Financial Services, Retail, Logistics & Distribution, Consumer Products, Information Technology & Telecommunications, Healthcare, Selected Industrial, Media and other Consumer-Related Services.
In addition to German and Dutch investment banks, the European Bank for Reconstruction and Development is one of the fund’s largest investors with EUR 22 million, while the Black Sea Trade and Development Bank has invested EUR 10 million.