Abris Capital Partners, the leading private equity investor in Central Europe, has signed an agreement to sell its stake in Cargounit, the largest independent locomotive lessor in Poland, to Three Seas Initiative Investment Fund (advised by Amber Infrastructure Group). Closing of the transaction is subject to the customary conditions precedent and is expected to take place by year-end.
Cargounit is the largest independent locomotive lessor in Poland, providing a comprehensive service offering, and is led by a highly experienced management team. Abris acquired a majority share in this company in May 2016 and subsequently invested additional capital for fleet expansion.
During Abris’ investment, the company has grown strongly, increasing revenues and profits more than threefold. Between 2016 and 2018, Abris helped drive this expansion through completing a staged acquisition of a large pool of locomotives, followed by opportunistic purchases of smaller fleets in subsequent years. During 2018-2020 the Company focused on investing in new fleet, including top-of-the-range locomotives, and completed a landmark, EU co-funded order for five brand-new multisystem locomotives specified for intermodal transportation. With extensive expertise on CE market, Abris Capital Partners is well-positioned to have insights about the regional market and its challenges.
Cargounit also implemented a number of key business initiatives focused on resilience of revenues and cash flows, as well as extension of its service offering. Many of these set new standards for the industry in Poland, increasing reliability and quality of service for key customers. Cargounit established itself as the clear market leader through prolonging and securing long-term contracts, extending its client base as well as its breadth of leasing options offered and introducing fleet management services. In addition, the business made significant improvements to its financing structure, successfully rebranded and implemented a dedicated fleet management IT system.
Edgar Koleśnik, Partner at Abris Capital Partners, commented:
“We are delighted with how Cargounit has grown, and especially how resilient this business has been this year. We are extremely proud to have created the largest independent locomotive lessor in Poland in strong cooperation with the founders and management team. We are pleased that the company can now go forward to the next stage in its growth with Three Seas Initiative Investment Fund (advised by Amber Infrastructure Group).”
Joe Philipsz, Senior Investment Director at Amber Infrastructure Group, said: “We are delighted to announce the signing of Cargounit. Cargounit’s existing asset base and customer relationships offer a strong platform for expansion both in Poland and surrounding countries”.
Adrian Stănculescu (photo), Head of Abris Romania & Partner, commented:
“Abris’ mission is to provide support to such ambitious companies. We have had the privilege of partnering with many companies to accelerate their growth over more than a decade. While we acknowledge the uniqueness of this post-pandemic situation, we have the experience and proven growth methods that were tested in a wide range of sectors. And having raised over EUR 500 million three years ago we are well founded to invest into these determined businesses. The domains of interest for Abris Capital are: B2B and B2C services, logistics, production, IT&C.”
To date, Abris has invested in more than 25 businesses across five countries in Central Europe and has 4 Romanian companies in the current portfolio: Pehart, Green Group, GTS Group and Dentotal Protect.