News

MBO Has Huge Potential

20.03.2012
Company: Amcham

Seller: Optrex Europe GmbH Target Company: OPTREX Czech a.s. The managers of OPTREX Czech a.s. („OCZ“) have successfully accomplished the Management buyout („MBO“ – existing managers buy their own company) of OPTREX Czech a.s.. OCZ produces displays and modules based on the technology of thin film transistor liquid crystal display, TFT LCD. Such displays are used in the automotive industry, telecommunications and handheld devices, medicine, industry and households (www.optrex.com). The negotiations commenced in November 2011 and the transaction was successfully accomplished on 31 January 2012.

RSM TACOMA participated in the process of selling by organizing and managing the transaction as well as acting as the exclusive adviser to the company´s management.

OCZ continues the tradition of TESLA Vrchlabí and has been present in the Czech Republic since 1999. OCZ produces LCDs as well as TFT LCDs which were launched in 2008. The company focuses mainly on automotive industry providing its products to such carmakers like BMW, Audi, VW, Škoda, Volvo, Opel, Ford, Renault and Peugeot.
Recently OCZ has seen its revenues ranging from CZK 400,000,000 to 500,000,000.

OPTREX ranks among the leading global producers of displays and modules based on LCD TFT. The company is present in Asia, Europe and Northern America. OPTREX has its design, research and development centres in Japan as well as in Europe. As a supplier of the latest display technologies, OPTREX has gained a dominant position in the area of automotive, telecommunication and industrial applications. In December 2011 OPTREX was acquired by KYOCERA.

Zdeněk Kodejš, a member of OCZ´s board of directors, comments on co-operation with RSM TACOMA on this transaction:
“We found ourselves in a situation when we had to start dealing with the MBO literally over night. This was a result of the original shareholder´s decision to sell the entire company to Kyocera which concluded the deal on condition that it would also acquire the Czech production facilities of European OPTREX. However, Kyocera was willing to continue the production, especially in Vrchlabí. Based on these facts, we decided to contact Marek Rosenbaum of RSM TACOMA whom we knew to be experienced in similar projects. Today we believe that this decision helped us save a lot of time and also contributed to the smooth running of the entire transaction. In a very short time we managed to prepare the OEM agreement with Kyocera, a new shareholder of the original OPTREX, ensuring continuous co-operation. Thanks to the significant participation of the law firm Liška & Sabolová, we managed to take all the necessary legal steps.

I believe it was an interesting experience for both of our partners because we had only about six weeks to arrange and realize everything. Given the specific situation of the production facility in Vrchlabí, it was a real challenge for all participants as they had to get it right first time and on time!” In conclusion let me say: “Thank you, my friends.”

Marek Rosenbaum, RSM TACOMA Partner, said about the MBO:
“Managers who are ready to buy the companies they have been managing so far (Management buyout – MBO) often want us to help them benefit from currently available opportunities. We believe that MBOs which are well prepared regarding the necessary equity, structure of the transaction and funding represent an attractive opportunity for further development for both managers and current owners of companies, who can sell their company to people they know and who are familiar with the acquired business. We believe that an MBO has huge potential for further development and can, to a certain extent, substitute the lack of foreign investments.”

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For further information on this transaction, please contact:

Marek Rosenbaum
Partner
+420 603 419 837

Ondřej Štěpánek
M&A Manager
+420 739 343 392