PRISTA OIL GROUP: RELOAD
Purchase transaction of 30% share of Prista Oil Group capital, prevously owned by an investment company ADM Capital and the European Bank for Reconstruction and Development (EBRD), was successfully concluded by majority shareholders Plamen Bobokov and Atanas Bobokov.
The transaction structure included refinancing of shareholder debt and the rest of the investment credit, given by the EBRD for business development and implementation of technology solutions for improvement of Prista Oil’s business processed. Up to 50 million euros funding from UniCredit Bulbank was used for this deal, which resulted in recoving full control and management of Prista Oil Group by the majority shareholders Plamen Bobokov and Atanas Bobokov, without minority interest fund shares and other financial or strategic partners.
Over the past four years of partnership and cooperation with ADM Capital and EBRD, Prista Oil Group operating companies went through a significant reorganization of business modeling and goal setting, decision making in corporative environment, optimizing the balance sheet through active management of working capital and, respectively, reducing short-term debt as a first step towards healthy growth and removing of non-operating (which are not part of the core business) assets. As part of the 2012 transaction, ADM Capital and EBRD provided the funds which helped for major acquisitions for the purpose of implementation and expansion of the Group’s dual-brand business strategy
Reorganization of business modeling and goal setting was possible due to the involved expert financial team led by Group Finance Director and business solutions based on information technology - implementation of an integrated ERP system for resources management, business processes optimization and aligning of business nomenclatures; implementation of CRM (Customer Relationship Management) system helped providing customers with information on prices, orders, claims, etc.
As a result of an improved corporate and business environment, Prista Oil Group of Companies achieved subsequent optimization, resulting in selling the terminal for base oils in Ukraine and, a year later, selling of a majority stake in the Hungarian Bogdany Petrol (producing emulsions, white oils and vaselines) to its management team.
While implementing its development strategy using the funds provided by ADM Capital and EBRD, Prista Oil made two significant acquisitions: purchased the companies Chevron Czech and Chevron Romania from Chevron with a “package deal” in 2013, which also included distribution rights for Texaco branded products in 14 countries of Central and Eastern Europe, Ukraine, Turkey and Central Asia, and a license for production of certain Texaco products. At this moment, Premium Lubricants (former Chevron Romania) and Uz-Prista (former Uz-Texaco, acquired by Prista Oil in 2011) are the leading companies in the Group’s lubricants business, with the highest sales volumes and earnings.
Currently, the goal of lubricants division of the Group is an organic growth in the territories where it operates, with additional focus on export markets where Prista Oil is not present with affiliates but cooperates with disctiburtors, delivering orders on request and aiming sales volumes of 80-90 million euros and EBITDA of 8-10 million euros.
Monbat Group of Companies also continies its sustainable development. It operates in two main areas - production and distribution of starter and stationary batteries and production and recycling of lead. The Monbat Group has successfully implemented an investment program to increase production capacity of batteries business, as well as the capacity of its recycling facilities.
Monbat companies remain permanently export-oriented with 87% of sales performed on export markets through well-functioning distribution network in over 54 countries in Europe, Asia and Africa. The implementation of the investment program has helped achieving sustainable sales growth - an average of 9% per annum and EBITDA margins of around 20% with average number for this industry of 11%.
Monbat will continue working on its investment program aimed not only at increasing production capacties and their efficiency, but also at bringing new technologies to the production of a new type of starter batteries.back