TDA Capital Partners backs Gamet

Investee Company – Gamet (Poland)

Investee Company Business Type – Manufactures furniture fittings

Type of Financing – Expansion

Equity Providers – TDA Capital Partners

Equity Leader (Individual) – James Halper and Krzysztof Sobolewski

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – Undisclosed

Total Deal Value – Undisclosed

Other Advisors – N/A

Comments – TDA Capital Partners has announced the acquisition of a majority stake in Gamet, a Polish furniture fittings producer. The financial details of the transaction were not disclosed.

Gamet, based in Toruń, manufactures furniture handles and knobs, decorative furniture hinges, furniture keys, furniture legs, door handles and other accessories for furniture production. The company’s core business is in cabinet hardware. The Polish market for furniture accessories is worth between PLN250 million (€61.5 million) and PLN280 million (€69 million), this constitutes 5 per cent of the entire furniture market. For the two years ending in 2001, the company doubled sales revenue to over PLN80 million (€22.5 million) of which 25 per cent came on direct export.

James Halper, partner at TDA Capital Partners, said: “Gamet boasts a high profitability ratio with a very low debt to equity ratio that gives the possibility for financing future growth through bank debt.”

TDA disclosed that it plans to develop Gamet’s sales in Western Europe, especially to France, Scandinavia and the United Kingdom. Gamet also hopes to open commercial bureaus in southern and eastern Europe, in particular Russia. Gamet’s target market of Western Europe is estimated to be worth euro 3 billion.