17. 10. 2019

TES Vsetin s.r.o. completes Management-Buy-out with ARX Equity Partners

Vsetin, October 15, 2019 – The management team of TES Vsetin s.r.o. (“TES / the Company“) announces today the completion of the management buy-out of TES led by ARX Equity Partners (“ARX”), a private equity firm with a 20-year track record supporting the growth and development of mid-sized companies in Central Europe.

Headquartered in Vsetin, Czech Republic, TES is an engineering company active primarily in the design and manufacturing of its own proprietary electric machines, such as generators, motors, special purpose machines and system components relating to electrical machines. The Company employs around 600 technically skilled engineers and employees.

„We are pleased to have a new majority shareholder and strong partner based in Czech Republic with experience and track record in investing in manufacturing. Together with ARX, we will continue our strategy at TES to grow and expand our business based on 100 years of experience in the production of electrical equipment to become the global partner of choice for purpose-built rotating electrical machines, drives and components”, says Dr. Manfred Lerch, Chief Executive Officer at TES.

Michal Aron, Partner at ARX, comments: “We are very impressed with TES’ ability to deliver high quality solutions for a demanding blue-chip customer base and we look forward to partnering with their already strong management team to drive future growth in an exciting new chapter for the business.”

TES is also pleased to announce that Tomáš Pavlica, Jan Kasanický, and Zdeněk Pfeiler have been appointed as Members of the Executive Board at TES Vsetin s.r.o. with immediate effect to support Dr. Manfred Lerch as the Chief Executive Officer of the firm.

Financial details of the transaction were not disclosed.

About TES Vsetin

TES is a leading European industrial designer and manufacturer of tailor-made power generators, motors, drives, and other electrical machines and their system components with a track record of more than 100 years. The Company’s product range consists of three fully vertically integrated business lines: Machines & Solutions, System Components and Technical Service. TES employs about 600 engineers, technicians and staff and is the global partner of choice for a large and highly attractive group of leading blue-chip customers consisting of both, customers with long-standing relationships. Products are manufactured at the Company’s own manufacturing site located in the centre of Europe in an attractive area which is characterized by leading cost metrics and well-known for its engineering and manufacturing know-how. TES was founded in 1919 and is based in the Czech Republic with a representative office in Germany.

For more information, visit www.tes.cz

Media enquiries about TES:
Dr. Manfred Lerch
TES Vsetin s.r.o.
Tel.: +420 571 812 111
Email: mlerch@tes.cz

About ARX:

With more than € 300 million raised in four funds, ARX has become a leading private equity firm in its segment in the Central European region. Headquartered in Prague, the firm’s activities are managed by an experienced and multinational team of investment professionals, combining a wide range of international expertise plus in-depth local knowledge. These features enable our portfolio companies to realize their full potential while achieving superior returns for our investors and partner entrepreneurs. Partnering with owners, managers and other co-investors, ARX focuses on later stage growth-oriented investments, such as management buy-outs and buy-ins and industry consolidation transactions across all sectors. To date, ARX’s track-record includes several, successful lower mid-cap manufacturing investments. The firm intends to capitalise on this strong sector experience stemming in particular from its long and successful experience with former portfolio company, VUES Brno, which operates in adjacent markets to TES. VUES Brno was exited in a strategic sale to NYSE-listed Moog in 2018.

For more information, visit www.arxequity.com

Media enquiries about ARX:
Michal Aron
ARX Equity Partners s.r.o.
Tel.: +420 224 235 399
Email: michal.aron@arxequity.com