The value and terms of the transaction will not be disclosed. The transaction is subject of the Antimonopoly Office clearance.
Drumet is a European producer of steel wires, wire ropes and steel staple band with a dominant position on the domestic market and significant presence in Western Europe in particular in Germany and Benelux countries.
In July 2009 Penta acquired Drumet enterprise out of bankruptcy and after immediate restructuring and significant capital investments the Company was able to reestablish its previous market position. Penta team successfully turned around Drumet, increasing its revenues from scratch to app. EUR 12.5 million already in 2009 to EUR 60 million in 2010 and is currently aiming at realizing the 2011 budget at above EUR 75 million, at the same time sustaining targeted profitability.
"Drumet acquisition was a great challenge, taking company from the bankruptcy and rebuilding the reputation and confidence towards the Clients and Employees. Penta has a rich experience in turnarounds and we are glad that along with the Employees and our stakeholders, we were able to deliver such a great result in Poland as well. WireCo is a global strategic player able to give Drumet a long-term vision and perspective," Rafal Sosna, Country Managing Partner of Penta for Poland said.
"We are proud of our investment in Drumet and very pleased that we were able to re-establish its strong market position, preserve work places for hundreds of people and bring the Company to the next level of development," said Adam Jarmicki, Investment Manager of Penta responsible for Drumet.
Main steps in rebuilding Drumet
- Immediate re-launch of production and reconstruction of the order book
- Prompt accommodation of the cost structure of the company to realistic levels of production
- Introduction of a strong and experienced management team
- Launching production of thick ropes
- Implementation of an advanced ERP system,
- Established in 1895 and based in Wloclawek, Drumet has the longest tradition of production in Poland and is one a few such companies in Europe.
- In 2007 before the bankruptcy Company produced 120,000 tons of steel wire products and generated revenues of approximately EUR 106 million.
- The company suspended its production activities in February 2009 due to lost liquidity.
- In January 2009, the company filed for bankruptcy protection, based on which the Economic Court in Wloclawek announced the bankruptcy liquidation and appointed an Official Court Receiver.
- On the 15th of July 2009, Penta Investments effectively became the owner of Drumet's enterprise (i.e. operating assets and employees), with a transaction value of EUR 30 million.
- Drumet currently provides app 700 jobs and is one of the biggest employers in Włocławek.