Enterprise Investors (EI) has signed a deal to acquire a 49% share of Dino, a move that will help the Polish supermarket’s plan to expand its operations. The €50 million investment, which will be made as a capital increase through EI’s Polish Enterprise Fund VI, now awaits approval from Polish authorities.
Once complete, Dino will join an EI portfolio which includes Romanian supermarket chain Profi Rom. EI spent €66 million on a management buy-in of Profi Rom in late 2009.
Dino is a regional supermarket chain operating primarily in the western portion of Poland. The company was established in 1999 with Polish funding and has enjoyed a tremendous growth rate, particularly the last three years.
With an average 1-2 new stores opening each month, Dino currently operates 97 locations and plans to reach 115-120 by year’s end.
2009 revenue, which is expected to see a 30% increase this year, was reported at €97 million.
Enterprise Investors was established in 1990 after the implementation of the U.S. government-funded Polish-American Enterprise Fund, an investment vehicle designed to provide equity funding for the Polish private sector. The firm has invested in excess of €1.3 billion in more than 100 projects in the last 20 years, while raising more than seven funds worth a combined total of €1.7 billion.
Enterprise Investors invests mainly in private, medium-sized business with an average horizon of three to seven years. Portfolio companies receive EI support in strategic planning, financial decision-making, and professional recruitment. EI prefers to stay away from day-to-day operations. While Polish investments are EI’s top priority, the firm looks at other potential projects that will help expand its reach in Central and Eastern Europe.