Infopress printing house is planning to expand its productive capacity and consolidate its position on the regional market, so that it has raised some $10 million in funding, following a financial transaction that entails a capital increase and obtaining a loan.
The investment fund Baring Central European Fund (BCEF) purchased 80% in the printing house for $5.8 million, following a capital increase.
At the same time, Infopress will get an investment credit worth 4.2 million euros to be repaid in six years, as well as funding for its working capital from Banca Rom=na pentru Dezvoltare (Romanian Development Bank) - Societe Generale (BRD-GSG).
The company will benefit from a twelve-month grace period. The interest is LIBOR plus "a very good margin for the client," the bank officials mentioned, without providing further details.
Infopress, the number one printing house in Romania, will use the new funds for buying state-of-the-art printing equipment. The company is also planning to expand its territorial productive capacities.
"We're considering opening a new printing shop in Bucharest or in other area, but nothing is certain yet," Andras Albert, Infopress general manager, said.
Infopress holds 55% in the colour magazine market and almost the entire large volume commercial printing market.
It has occasionally exported to Germany and Finland and exports to Bulgaria on a regular basis. Exports account for 5% in the total output. Infopress is planning to expand to Hungary, Serbia and Macedonia, as it wants to have the export figures double.
Infopress' turnover last year reached $13 million. The company management did not care to volunteer further financial data.
"Infopress is already the leader of the commercial printing market in Romania. The partnerships with Baring Central European Fund and the credits from BRD-GSG will help us become a company that provides the full printing services range and have one of the largest and most up-to-date commercial printing centres in Southern Europe. The new funds will be used for buying two pieces of equipment, to start running before the end of Q4 this year," Andras Albert stated.
The investment in Infopress is the first placement operation of the Baring Fund, after its investment resources increase to 75 million euros early in the year.
"After Baring Central European Fund successfully concluded the first subscription round at the beginning of this year, the investment in Infopress adds a market leader with a performance management and big growth potential to our portfolio which is quickly expanding," said Leonard Gherghina, general manager of Baring Private Equity Partners, the company that administrates the BCEF Fund.
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