Horizon Capital wins Private Equity International (PEI) Operational Excellence Award (EMEA region) for Purcari Wineries deal
October 01, 2020
Kyiv, Ukraine – Horizon Capital, a leading private equity firm in Emerging Europe, has won a coveted 2020 Private Equity International Operational Excellence Award for its Purcari Wineries transaction in the Europe, Middle East and Africa (EMEA) region. PEI’s Annual Operational Excellence Awards recognize stand-out value creation stories in the private equity industry. Nominations are submitted from across the globe with PEI’s panel of distinguished, independent judges selecting 12 finalists from 3 regions – EMEA, Americas and Asia-Pacific. In honoring Horizon Capital, the judges commended the firm for the “excellent turnaround of a business with continued growth”, noting challenges faced that were overcome with stellar results.
This prestigious award is a first for Horizon Capital in this category and made possible by the strong partnership and collaboration between Victor Bostan, Purcari Wineries Founder & CEO and Vasile Tofan, Horizon Capital Partner, in launching and implementing robust value-creation efforts beginning in 2013. The firm is particularly proud to be recognized for its noteworthy achievement in operational excellence as helping founders and their companies to achieve best-in-class performance is fundamental to growth equity investing at Horizon Capital.
Purcari Wineries faced major challenges following an embargo on wine exports to its largest market, thus turning a growth investment by Horizon Capital’s Emerging Europe Growth Fund II, L.P. (EEGF II) fund, into a turnaround story. Against this backdrop, Horizon Capital led efforts that included Purcari Wineries shifting its commercial strategy to focus on CEE markets, streamlining the portfolio and relaunching key brands, strengthening the management team under its founder, upgrading marketing and sales capabilities, improving financial discipline and realizing cost efficiences, which ultimately, culminated in a successful IPO on the Bucharest Stock Exchange in 2018. This commitment to operational excellence has had an enormous impact on Company results. Purcari revenues more than doubled between 2013-2018, despite the embargo, with exports to over 40 countries; EBITDA grew over 15 times and EBITDA margin rose to circa 35% – the highest among its global peer group. Purcari Wineries (ticker symbol: WINE) was successfully listed on the Bucharest Stock Exchange, a first for a Moldovan-based company with Horizon Capital’s EEGF II fund earning a gross 3.3x cash-on-cash blended multiple on exit. Following EEGF II’s full exit, Purcari Wineries attracted a new investment from Horizon Capital’s latest EEGF III fund based on its ambitious long-term growth plans and by first acquiring part of founder shares, then further increasing shareholdings to now hold a minority stake second only to the Company’s founder.
“Horizon Capital is truly honored to be recognized by Private Equity International and its esteemed panel of judges for our hands-on work to transform Purcari Wineries together with founder-visionary Victor Bostan and the talented management team”, said Lenna Koszarny, Founding Partner & CEO. “Horizon Capital invests more than capital in the leading companies that we back – we work shoulder-to-shoulder with founders and their teams to develop strong companies operationally, competitively and financially. This award truly belongs to Victor Bostan, Vasile Tofan and the entire Purcari Wineries team. Congratulations to all of us! Felicitări tuturor!”
Horizon Capital is the leading private equity firm in Ukraine and Moldova backed by over 40 institutional investors, managing four funds with assets under management of over $850 million and a tenure of 25 years in the region. The firm is an active, value-added, growth equity investor, investing alongside visionary entrepreneurs leading transformational businesses in Ukraine and the near region. Our investment strategy focuses on export champions in technology, e-commerce, light manufacturing, and food and agro, as well as select domestic champions in fast-growing sectors. We are known for our strong team, high integrity and governance, value creation and track record of successful investments. More at www.horizoncapital.com.ua
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