It is being bought by the Czech Genesis Private together with the Polish fund Avallon from the Arx Equity Partners group fund, which acquired TES Vsetín in 2019. Completion of the transaction is expected to take place by the end of next month after obtaining the approval of the antimonopoly authority. The value of the transaction is in the hundreds of millions of CZK.

The domestic fund Arx Equity Partners acquired the Vsetín company 4 years ago from the American fund Advent International. Advent tried to move the TES Vsetín company from individual orders and smaller production to mass production, but it ended up with a loss of around 2 billion CZK. However, TES Vsetín returned to profitability under the management of the Arx fund.

The company TES Vsetín, focused on the production of electrical machines and related components, was founded in 1919 and employs 550 people. In its production process, it designs, manufactures, tests and certifies machine components, and exports its products to 65 countries around the world. The company is well received by designers of small hydroelectric plants up to five megawatts. But it can also produce components for much larger machines up to 80 tons, used in the renewable energy, automation, construction and rail transport sectors.

Genesis Capital is a PE group that focuses on small and medium-sized companies in Central Europe and offers growth financing. Currently, Genesis funds manage investments in companies such as: Datart, Sanborn, Hecht Motors or Borcad Home Care Promedica. The Polish fund Avallon has been engaged in capital investments for 25 years, is an experienced pioneer in the buyout market in Poland, and has participated in more than 100 transactions so far. The total value of the funds it obtained for investment purposes exceeds 300 million euros.