Horizon Capital, a leading private equity firm in the region, announced on January 29 that its USD 200 million Emerging Europe Growth Fund III (EEGF III) has bought a 6.8% stake in Romanian-Moldovan wine producer Purcari, listed on the Bucharest Stock Exchange.
The fund paid USD 7.0 million for the stake. Horizon Capital became the majority shareholder of Purcari Wineries in 2010, when it took over 64% of the companys’ shares through Emerging Europe Growth Fund II.
The fund sold a significant part of its stake in the company’s initial public offering (IPO), in February 2018, and the remaining shares in October 2019, through another transaction on the Bucharest Stock Exchange.
“We were delighted to earn circa 3.3 times the investment made. However, with an additional 3-5 year time horizon, we believe that Purcari has significant further upside potential, hence, when the opportunity arose, we moved swiftly to seize it,” said Lenna Koszarny, Founding Partner and CEO of Horizon Capital.
Purcari founder and CEO Victor Bostan sold Horizon Capital a 5% stake for RON 22 million (about EUR 4.6 mln), and the fund bought the rest of the shares from other investors on the Bucharest Stock Exchange.
“I am delighted to see Horizon Capital return as shareholders from their latest fund, EEGF III. I would not have sold such a sizeable stake to any other investor, but having worked with their Partner, Vasile Tofan and the team for nearly a decade now, I recognize their immense contribution to Purcari’s success and look forward to their strong value-add continuing going forward for many years to come,” Victor Bostan said in a press release.
After this transaction, he still owns a 20% stake in Purcari through investment vehicle Amboselt Universal Inc.
Among the company’s significant shareholders are big international investors such as Aberdeen Standard, East Capital, Fiera Capital, Franklin Templeton, IFC and SEB. Purcari’s shares have gained over 40% in the last 12 months. The company is currently valued at close to EUR 100 million.
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