Equest Investments Balkans (EIB) has announced that its subsidiary Lynx Property has completed its purchase of a 75% stake in Romanian consumer and electronics retailer Domo. The acquisition, announced in July, was made for EUR 62.5 mln. Domo currently operates 116 retail outlets in major cities throughout Romania.
Equest Investments Balkans (EIB) has announced that its subsidiary Lynx Property has completed its purchase of a 75% stake in Romanian consumer and electronics retailer Domo. The acquisition, announced in July, was made for EUR 62.5 mln. Domo currently operates 116 retail outlets in major cities throughout Romania.
The deal was funded by EUR 30 mln from Lynx and a EUR 35 mln loan facility from Raiffeisen Zentralbank Osterreich. EIB, an Irish investment company focusing on the Balkan region, is providing a shareholder loan facility of up to EUR 13.5 mln to Lynx. While Domo’s founding shareholders currently retain the remaining 25%, Lynx has rights to purchase this stake too, dependant on the retailer’s financial performance in 2007 and 2008.
Commenting on the closure, Petri Karjalainen, managing partner of EIB's Investment Adviser Equest Partners said: ‘We are delighted to have completed the strategically important Domo acquisition. Domo will add to EIB's strong foothold in the consumer electronics business through our investment in Technomarket. Furthermore, we believe that this acquisition will enable us to achieve considerable operational and purchasing power synergies with Technomarket and that we will be able to contribute significantly to the business' strong growth.’
Technomarket is Bulgaria’s largest wholesaler and retailer of consumer and home appliances.
