Private equity firm ARX Equity Partners has exited its 2010 investment in Czech construction materials manufacturer KVK.
The exit has generated an overall 3.7x cash-on-cash return multiple and an IRR exceeding 20%.
KVK operates six production sites in the Czech Republic, of which three are for the manufacture of mortar products, two are for bituminous membranes and one is for expanded polystyrene insulation. In 2016 the business generated revenues of €40 million.
ARX has sold the business to Sika, a Swiss specialty chemicals company.
ARX acquired a majority shareholding in KVK in 2010 with the intention of completing complementary add-on acquisitions. Since then KVK has acquired KRPA Dehtochema, which strengthened its position in the Czech and Slovak bituminous membranes market, and Penopol, which enabled it to move into the expanded polystyrene market.