The Belarusian company West Ost Union, that owns the Buslik brand, is strengthening its competitive position on the market by attracting a strategic partner – the Polish company CDRL (Coccodrillo). As a result of the transaction, 90% of West Ost Union corporate rights are transferred to CDRL, including a share of the European Bank for Reconstruction and Development. The conclusion of the transaction will allow the Bank to quit the shareholders' structure of West Ost Union and complete the investment cycle.
Attracting a strategic partner will help West Ost Union to increase its market share, which is currently estimated at 15%.
Capital Times Investment Company supported the deal as an exclusive financial advisor to West Ost Union. Two companies acted as legal advisors on the seller's side: Revera and Sorainen.
"We cooperated with the owners of the retail chain at every stage of the transaction – finding a partner, maintaining due diligence, concluding an agreement," notes Dementy Yuferev, Investment Director of Capital Times.
This is the fourth closed M&A transaction in 2018 for Capital Times acting as an investment advisor.
West Ost Union owns 46 stores of the full range of children's goods, operating under the Buslіk brand throughout Belarus, 17 stores are located in Minsk. A few years ago, the company made a decision to attract a strategic partner for further development.
CDRL is engaged in the design, production, and sale of clothing for children aged 0 to 14 years under the brand Coccodrillo. The company has more than 300 stores in Poland and more than 500 worldwide and also exports its products to Belarus, Russia, Ukraine, Lithuania, Latvia, etc.
Capital Times Investment Company is an independent investment banking company founded in 2006, specializing in financial support of M&A deals. The company has two offices - in Minsk and Kiev, and is also a member of the international organization Globalscope, with the support of 55 partners in 48 countries.