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INNOVA AWARDED AT INVESTMENT FORUM & PRIVATE EQUITY GALA

Another edition of the prestigious “Investment Forum & Private Equity Awards Gala” conference, bringing together the leaders of investment markets, took place on June 6 at the Westin hotel in Warsaw. For the seventh time the leading representatives of the private equity sector discussed the future of the sector and the most important issues for Polish companies and investors. The conference was organized by Executive Club under the patronage of the Polish Private Equity and Venture Capital Association.

The conference gained the status of the most important event on investments and Private Equity in Poland and has been attracting leaders of investment markets, top management of the largest Polish companies, as well as investors and entrepreneurs for years. The invited speakers, most renowned representatives of the industry, debated among others, on the possibilities of acquiring capital for global development and long-range perspectives for the export directions of domestic companies.

The results of the fifth edition of the “Private Equity Diamonds” Competition in 2016 gave Innova Capital two prizes in the following categories:

PE Portfolio Company of 2015– Grupa Wirtualna Polska

Fund of the Year 2015– Innova Capital

INNOVA EXITS BATHROOM MARBLE PRODUCER MARMITE TO CRANEMERE LTD

On 12 May 2016 Innova together with other minority shareholders sold their stakes in Marmite – the leading European cast marble sanitary ware manufacturer – to Cranemere Ltd. in one of the biggest deals in Poland this year.

Innova purchased a controlling stake in gfx_logo Marmite from its founder Roger Johansson, in 2010. Under the leadership of CEO Robert Rutkowski and his team, the Company pursued its strategy of European expansion, product and material innovation and operating improvements, further extending its leadership position on the European market.

Business transformation and founder succession

During its holding period Innova helped steer through the transition from founder to a world-class management team. During 2010-2016 Marmite built a pan-European sales force, improved productivity and capacity in its Poznan production plant, and developed a top-class design capability recognized by the international iF, Red Dot and AꞋDesign Awards.

With ca. EUR 50m of annual sales and the majority of its products sold for export, Marmite is the leading European producer of cast marble sanitary ware and the only supplier capable of meeting the highest standards of the largest and most demanding European customers in terms of volume, quality and just-in-time delivery. “Marmite is a truly world class company, headquartered here in Poland. We are delighted.” said Olivier Weddrien – Head of Cranemere’s European activities. “Innova seeks high-value-added manufacturing businesses that can establish leadership not just in Poland, but across Europe. We are therefore very proud of what has been achieved by Marmite” responds Rob Conn, Innova’s Founding Partner.

This is the 9th Founder Succession deal in which Innova takes a majority stake and partners with business founders to build their company “to the next level”. “Innova was my partner of choice, and I am very happy with our partnership and what has been achieved over the last five years”, said Roger Johansson, Marmite’s founder.

Exit

Cranemere Ltd. purchased a 100% stake in the Company.

About Marmite

Marmite is the leading European manufacturer of washbasins, shower trays and bathtubs made of cast marble. The company brings together natural mineral materials, sophisticated technology and develops efficient cast marble innovations. Marmite has 40 years of industry experience, hires over 550 employees and uses its 7 fully organized production lines with a total capacity of 1.4m units/year to manufacture products for more than 200 clients from nearly 40 different countries.

LIVINGBRIDGE INVESTS IN TELECOMS SPECIALIST SOUTHERN COMMUNICATIONS

Livingbridge dials up investment in telecoms specialist

Livingbridge has invested in Southern Communications, one of the UK’s oldest telecoms firms which can trace its roots back to 1965.

Today, Southern Communications provides
SME businesses across the UK with a range of services including fixed-line, data, mobile and cloud based services alongside sale, installation and maintenance of telephone systems.

Over the past three years, Southern Communications has completed the acquisition of eight businesses, transforming itself into one of the UK’s largest providers of business-to-business telecoms services in the UK with turnover of over £30 million, over 6,600 business customers and a workforce of over 160 employees operating from four locations in the UK.

Livingbridge have taken a minority stake in the business and, following the investment, will work with the management team to help grow the customer base, introduce new product lines and services and execute strategic acquisitions to augment the firm’s organic growth plans.

As part of the transaction, the business has also secured a new, £36 million loan facility from Santander and HSBC. In addition, David Goldie, former CEO of TalkTalk, will join the business as Chairman and work alongside Paul Bradford, CEO, who originally joined the Group in 1995 and led a management buyout of the firm in 2002.

Livingbridge is an experienced TMT investor and Southern Communications will join a portfolio which includes IT and managed services provider CableCom, internet services provider Metronet and call recording software business Redbox Recorders..

Paul Bradford, CEO, Southern Communications, said: “I am really excited about working with both Livingbridge and David Goldie to continue the Southern Communications journey. David brings with him significant experience having acquired over 40 businesses during his time at TalkTalk and, alongside the investment from Livingbridge, I feel like we have secured the perfect team to drive our ongoing development. This investment will provide us with significant firepower to acquire complimentary businesses as we seek to build on the strong momentum we have generated and move towards our stated aim of doubling in size over the next three to five years.”

Matthew Caffrey at Livingbridge said: “Southern Communications has a strong and consistent track record of both organic and acquisitive growth and has a fantastically well positioned product portfolio to service SMEs IT service and telecommunications needs. They are a real market leader in their field with recurring revenues of more than 90% and an industry leading customer retention rate. We’re looking forward to working with Paul and the team and helping them build on the strong progress the business has made to date.”