News

2024

SARMIS Capital acquires majority stake in MG-tec industry, bolstering romania's tissue paper sector (October 2024)

Bucharest, 8 October 2024

SARMIS Capital, the leading investment fund dedicated to Romania and neighboring countries, has announced its acquisition of a majority stake in MG-Tec Industry, one of Romania’s largest independent tissue paper producers.

This strategic move marks SARMIS Capital founding team’s second investment in the industry, signaling a significant milestone in MG-Tec Industry’s growth trajectory. The transaction has received all necessary regulatory approvals, paving the way for immediate implementation of the partnership’s strategic plans.

The partnership aims to cement MG-Tec Industry’s position as a regional leader in tissue paper production, leveraging SARMIS Capital’s expertise and financial backing to accelerate expansion. This collaboration underscores SARMIS Capital’s commitment to fostering innovation and excellence in Romania’s industrial landscape.

The strategic partnership will provide the resources and expertise needed to accelerate market penetration, optimize operations and expand the range of innovative products. This collaboration confirms MG-Tec Industry’s commitment to providing its customers with the highest quality products while maintaining high standards of sustainability and operational efficiency.

Founded in 2018, MG-Tec Industry has demonstrated remarkable growth, achieving a turnover of €58 million in 2023. The company’s diverse portfolio includes jumbo rolls, toilet paper, kitchen towels, tissues, and medical rolls, marketed under both proprietary brands and private labels.

MG-Tec Industry’s recent €150 million investment in three state-of-the-art production units, including one dedicated to adult diapers and other personal hygiene products, featuring cutting-edge machinery from global leaders like Andritz, Gambini and Fameccanica, positions the company for exceptional productivity and superior product quality. The greenfield configuration of these facilities ensures high scalability to meet growing market demands.

Dorin Mocan, CEO and co-founder of MG-Tec Industry,expressed enthusiasm about the partnership: We are proud of our achievements in Dej, where we’ve invested close to €150 million. In less than five years, we’ve created one of the most modern and efficient industrial production platforms in the region. We’re excited to collaborate with SARMIS Capital’s founding team, confident that together we’ll propel MG-Tec Industry into a new era of growth and innovation.

Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital, commented: We’re delighted to welcome MG-Tec Industry into the SARMIS Capital family. This partnership underscores our commitment to innovation and excellence. We’ll provide the necessary resources to accelerate MG-Tec Industry’s growth and achieve our ambitious goal of becoming the undisputed regional leader in paper production and personal hygiene products.”

MG-Tec Industry was assisted by Bondoc & Asociatii (legal), while SARMIS Capital was advised by PCF Investment Banking through Mihai Iordan, StepChange Consulting (commercial, tehnical and ESG), Deloitte Romania (financial, tax), Reff & Associates (legal).

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in Romania by a local team. SARMIS brings not only capital to the investee companies, but also significant strategic, operational and consolidation expertise.

SARMIS Capital’s partners include some of the most prestigious and reputable financial institutions in the world, providing it with significant investment capital.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their founders / management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio of investments into national / regional champions in their fields.

The management team has been actively investing in the region for over 15 years, placing over EUR 230 million in 20 transactions and obtaining bank financing for portfolio companies of over EUR 250 million.

SARMIS Capital’s first fund is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).

The investment program of MG-Tec Industry was partially financed through Decision No. 807/2014 of September 17, 2014, for establishing state aid schemes aimed at stimulating investments with a major impact on the economy.

SARMIS Capital Expands Leadership in Romanian Facility Management Sector with three Strategic Acquisitions (August 2024)

Bucharest, 11 September 2024

SARMIS Capital, the largest private equity fund dedicated to Romania and neighbouring countries, has announced a strategic acquisition involving three renowned companies: AEK Security, AEK Firefighters, and Deziclean. This move follows a successful partnership with BMF GRUP, the leader in integrated facility management services in Romania.

Under SARMIS Capital’s umbrella, the newly formed entity is strengthening its position as the largest player in the integrated facility management industry in Romania. This newly created company offers nationwide multi-technical and multi-service coverage, benefiting from the expertise of nearly 4,000 specialized and qualified employees. These services are provided for a total area of over 15 million square meters of buildings across all segments and generate a total annual turnover exceeding EUR 80 million.

The transaction closely follows the strategy announced at the time of the signing of the partnership between SARMIS Capital and BMF GRUP, both by expanding the portfolio of services provided to a growing customer base, covering a wide range of industries, and by signing strategic partnerships with other local and regional players.

Gabriel Teodorescu, CEO and co-founder of AEK-Deziclean Group, stated: “SARMIS Capital’s interest in partnering with AEK Group and Deziclean validates our substantial efforts and offers an opportunity to enter a new development phase with the enthusiasm and confidence in our new partners. This partnership will not only allow us to consolidate and expand our services but also bring numerous advantages to our clients and facilitate new investments in technology, digitalization, innovation, and sustainability.

Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital, commented: “We support this partnership and are confident in the synergies between the companies. We remain dedicated to our growth strategy, focusing on new partnerships to expand both our service portfolio and geographical presence.”

Gabriel Tomescu, CEO and co-founder of BMF Grup, added: “I am pleased that another group of Romanian entrepreneurs joins this ambitious project with enthusiasm. This collective effort consolidates local businesses to build a strong, sustainable, and successful entrepreneurial corporation.

Constantin Tomescu, co-founder of BMF Grup, noted: “We are guided by our vision to become a regional reference in the global integrated facility management industry. Our efficient and excellence-oriented policies, practices, and procedures have been the foundation for signing this new partnership.

AEK-Deziclean was assisted by Cristian Manole (financial), Filip & Company (legal), while SARMIS Capital was advised by Radu Tărăcilă Pădurari Retevoescu SCA (RTPR) (legal), Daniela Buhus (TS Partners) (financial), Dobrinescu Dobrev Tax Advisory (tax).

 

Companies inolved in the transaction

BMF GRUP specializes in providing integrated facility management services of the highest quality. The group companies generated in 2023 a total turnover of 60 million euros, the equivalent of a consolidated turnover of 35.4 million euros. Founded in 2011, the group offers a full range of solutions in the integration of administration services, facility management, maintenance, cleaning, security, snow removal, landscaping, fire prevention, specialized technical overhauls and intelligent building technology, as well as project management services, and engineering project-based works. With a dedicated and qualified team, made up of over 2,250 specialists, BMF Grup portfolio includes more than 12 million square meters of diverse properties.

The AEK-Deziclean Group, founded in 2011 in Bucharest, has grown to approximately 1,600 employees and reached a turnover of 20.4 million euros in 2023. The group offers various facility management serices such as cleaning, maintenance, landscape designing, security and maintenance of security systments and fire prevention.

SARMIS Capital is an independent private equity fund established in 2019, focused on investments in Central and Eastern Europe. It is the largest fund of this type raised in Romania by a local team. SARMIS brings not only capital to the investee companies, but also significant strategic, operational and consolidation expertise. SARMIS Capital’s portfolio of companies includes, in addition to BMF GRUP, Corporate Office Solutions and Smart ID Technology.

For more details visit the following websites:

BMF GRUP (https://bmfgrup.eu), Deziclean Retail Division (https://serviciidecuratenie.ro), AEK Security (https://paza.ro).

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in Romania by a local team. SARMIS brings not only capital to the investee companies, but also significant strategic, operational and consolidation expertise.

SARMIS Capital’s partners include some of the most prestigious and reputable financial institutions in the world, providing it with significant investment capital.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their founders / management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio of investments into national / regional champions in their fields.

The management team has been actively investing in the region for over 15 years, placing over EUR 230 million in 20 transactions and obtaining bank financing for portfolio companies of over EUR 250 million.

SARMIS Capital’s first fund is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).

2023

SARMIS Capital and BMF Group announce the largest investment in the Facility Management industry this year in Romania (June 2023)

Bucharest, 27 June 2023

SARMIS Capital, the largest private equity fund dedicated to Romania and neighbouring countries, announces the signing of a strategic partnership with BMF Grup, the largest integrated facility management company in Romania. Completion is subject to approval from the Competition Council, expected in the next months.

This partnership marks a significant stage in the development of BMF Grup, strengthening its position as a leader in the integrated facility management industry. The company is committed to investing in digitization and becoming a model of sustainability in the industry, aiming to expand its services and develop a solid platform for long-term success.

Constantin Tomescu, founder of BMF Grup, stated: “Our vision for the next stage of the company’s development is to become a prominent regional player in the integrated facility management space. The trust placed in us by SARMIS Capital, as an institutionally financed investment fund, confirms that the quality of our services, our high standards of corporate governance and solid ESG policies are pillars that make BMF Group the ideal solution for the most exigent corporate clients. The partnership with SARMIS Capital will support us in achieving our growth targets and will strengthen our position in the industry through access to capital and expertise of the fund’s team. This collaboration will enable us to invest more in technology and to offer increasingly innovative solutions to our customers, continuing to represent a trusted, transparent partner to all our stakeholders, including clients, employees and suppliers.”

Gabriel Tomescu, CEO of BMF Grup, added: “We are excited to have the SARMIS Capital team supporting us in accelerating the company’s growth and in strengthening our leadership position in the facility management industry. We believe that our employees are our most valuable resource and that constant learning and development opportunities are key to our long-term success. We will continue to implement the highest standards of corporate governance, monitor and manage risks and be responsible in our decision-making. We believe in implementing green solutions to improve the quality of life for our customers and employees, as well as the environment. We comply with all applicable rules and regulations and will continue to be a model of best practices in our industry.”

Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital, stated: “We are happy to join forces with BMF Grup, the leader in the Romanian integrated facility management market. Our investment in this company is the result of a thorough analysis of the outstanding performance achieved over the past 10+ years, since the company’s inception, as well as its significant potential for growth. I believe that the unparalleled expertise of the founders, alongside the synergies that can be achieved through this partnership and the connections with the group of companies in which SARMIS Capital has already invested (COS – Corporate Office Solutions and Smart ID Technology), will ensure the achievement of the company’s strategic objectives. We will strongly support the long-term success of the business and the consolidation of BMF Grup’s position as the undisputed leader in the facility management industry, through significant strategic and financial resources.”

BMF Grup was assisted by Blu Capital Partners, Dentons and Taxhouse, while SARMIS Capital was advised by Radu Tărăcilă Pădurari Retevoescu SCA (RTPR), PwC Romania, Roland Berger and SGS Romania.

 About BMF Grup

BMF Grup specializes in providing high quality integrated facility management services, with a consolidated turnover of over EUR 30 million in 2022. Founded in 2011, the group quickly established itself as a serious and reliable presence on the domestic facility management market, offering a full range of solutions encompassing multi-technical maintenance, cleaning, security and surveillance, concierge, prevention and firefighting, disinfection, snow removal, construction services and landscaping. BMF’s team of over 1.800 dedicated and qualified specialists uses innovative technologies, ensuring quick interventions in a maximum of 2 hours anywhere in Romania.

BMF Grup focuses on increasing the value and improving the properties it services, making sure it provides effective security and prioritizes the well-being of the buildings’ occupants. BMF Grup’s portfolio includes more than 12 million square meters of a diverse range of properties, such as shopping centres, office buildings, logistics centres and residential parks, which are professionally managed and maintained.

BMF Grup joins SARMIS Capital’s portfolio of leading companies across sectors – Smart ID Technology, one of the most important automation technology integrators in Romania, and Corporate Office Solutions (COS), a leader of integrated design & build and fit-out services for offices, hospitals, education, HoReCa.

 

For additional information about BMF Grup:

BMF Grup Communication Department

Adina Farcaș

Email: office@bmfgrup.eu

Phone: 0723 343 869

www.bmfgrup.eu

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in, and dedicated to investing primarily in, Romania and adjacent countries. SARMIS Capital’s partners include some of the most prestigious and reputable financial institutions in the world, providing it with significant investment capital.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their founders / management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio of investments into national / regional champions in their fields.

The management team has been actively investing in the region for over 15 years, placing over EUR 230 million in 20 transactions and obtaining bank financing for portfolio companies of over EUR 250 million.

SARMIS Capital’s first fund is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).

2022

SMART ID DYNAMICS, OWNED BY SARMIS CAPITAL, TAKES OVER THE BUSINESS ACTIVITIES OF SPECTRUM (MAY 2022)

Bucharest, 31 May 2022

Smart ID Dynamics, the independent leader in the Romanian industrial automation sector and backed by SARMIS Capital, has fully taken over Spectrum, a provider of integrated software solutions based in Brasov, Romania, a company with over 20 years of experience in offering software, hardware and post-implementation support services to its clients. The transaction closed in May 2022. 

Smart ID Dynamics specializes in providing highly customized end-to-end automation solutions for intensive business environments, primarily to customers in industries such as retail, logistics and manufacturing, with the purpose of optimising costs and increasing productivity. The company has a proven track record of delivering mission-critical, proprietary, tailored solutions across the value chain, from solution design & development to implementation and post-implementation maintenance & support. Despite a global challenging environment, the company managed over 20% growth in 2021.

The company was founded in 2010 by two technology passionate entrepreneurs, Daniel Boangiu and Romeo Iacob, who believed early in the future of automation and mobility technologies.

As an integrator of cutting-edge technologies, Smart ID Dynamics prides itself on a remarkable client base of around 3,000 businesses and over 250 implemented projects. All business solutions are tailored to the needs of clients operating primarily in retail, logistics, manufacturing, utilities, and healthcare. Smart ID has developed an impressive client base which includes blue-chip multinational companies (Carrefour, Selgros, REWE, Leroy Merlin, British American Tobacco, JTI, Philip Morris, TNT, DHL, KLG, XPO, IDL, Dacia), large local companies (eMAG, Sameday, Cargus, Macromex), and reputable small and medium businesses. The company proactively anticipates the needs of top businesses in terms of innovative technology and is knowledgeable about trends in intensive business environments. 

Spectrum was founded in 1999, in Brasov (Romania), by Mr. Emil Gall, and became one of the most reputable local providers of integrated and patented software solutions, with a wide presence across retail, manufacturing, meat processing, HoReCa, healthcare and recycling. Its well-known clients include Agra’s, Annabella, Auchan, Bebe Tei, Dacia Market, Diana COM, Humanitas, Moldovan Carmangerie, Prodlacta, Sergiana, Simigeria Petru, Transavia, Unicarm, among others. The company’s most sough-after product is Sceptrum, and Enterprise Resource Planning (ERP) system, which is patented and highly flexible, addressing critical corporate needs such as inventory management, accounting and third party management (clients, sales and support teams).

Cezar Scarlat, Managing Partner şi cofondator SARMIS Capital“We adhere to the agreed strategy with the founders of Smart ID Dynamics and focus on strengthening of the company’s leading market position through organic growth and acquisitions. Taking over Spectrum is based on a solid rationale, considering the compatibility between the two businesses and the common desire to offer ever-improving services to their clients. Spectrum is complementary to Smart ID Dynamics, improving the product offering available to the companies’ customers, but also increasing the potential for diversifying and creatig new software solutions. Smart ID Dynamics solidifies its position as the largest independent player in its sector in Romania, and SARMIS Capital continues to be by its side in this expansion process.”

Daniel Boangiu, CEO and co-founder of Smart ID DynamicsThis is a crucial time for the future of our organization, and the acquisition of Spectrum is a first step in the development of Smart ID Dynamics after SARMIS Capital has become a shareholder. It is part of our vision to invest in companies that sell proprietary IP solutions and to create synergies that benefit our market. Spectrum is a team with 100% Romanian DNA and this acquisition helps us to develop our capabilities and competencies, to extend our scope and, at the same time, to enhance the presence of Smart ID Dynamics in the vertical retail and manufacturing segments. I believe that working together as an extended team we will be able to explore and seize new opportunities, and that this acquisition will allow Smart ID to combine its proven know-how in complex solutions with the software-scaling functionalities and capabilities developed by Spectrum.

Emil Gall, founder of Spectrum: “For us, the Spectrum team, the decision to join Smart ID Dynamics has come naturally. The approach promoted by Smart ID Dynamics and its stakeholders has set the direction for our future development. The solutions and the know-how developed across over 20 years of existence, as well as the consideration and care shown to the extraordinary people in the Spectrum family during the transfer make us confident that our activity and achievements are truly valued and will be brought to a new level.”

Smart ID Dynamics was assisted in the acquisition by bpv Grigorescu Ștefănică (legal), Dobrinescu Dobrev SCA (tax), Path-Finder Corporate Finance (general assistance) and TS Partners (financial), while Spectrum was supported in the sale process by LC Legal Proof – Alex Lefter (legal).

Any further enquiries regarding this press release may be addressed at email bianca.neacsu@smartid.ro.

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in, and dedicated to investing primarily in, Romania and adjacent countries.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio investments into local/regional champions in their fields. The fund focuses on projects alongside local entrepreneurs, seeking majority shareholdings by investing €10-30 million tickets (larger participations are possible).

SARMIS Capital’s first fund is backed by some of the most prestigious counterparties around the world, including endowments, development financial institutions, family offices and high net worth individuals. It is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).

Sarmis Capital INVESTS in SMART ID dynamics, LEADING INDEPENDENT ROMANIAN PROVIDER OF automation SERVICES (JANUARY 2022)

Bucharest, 27 January 2022

SARMIS Capital, the largest private equity fund dedicated to Romania and neighbouring countries, acquired the majority stake in Smart ID Dynamics, a market-leading Romanian automation company. SARMIS is partnering with Mr. Daniel Boangiu, the CEO and co-founder of the company, and with Mr. Romeo Iacob, co-founder and Board Advisor, aiming to further consolidate SMART ID’s market position and expand internationally.

Smart ID specializes in providing highly customized end-to-end automation solutions for intensive business environments, primarily to customers in industries such as retail, logistics and manufacturing, with the purpose of optimising costs and increasing productivity. The company has a proven track record of delivering mission-critical, proprietary, tailored solutions across the value chain, from solution design & development to implementation and post-implementation maintenance & support. Despite a global challenging environment, the company managed over 20% growth in 2021.

The company was founded in 2010 by two technology passionate entrepreneurs, Daniel Boangiu and Romeo Iacob, who believed early in the future of automation and mobility technologies. During its 11 years of activity, Smart ID services have been successfully delivered to more than 3,000 clients in more than 250 completed projects and currently the company serves an impressive portfolio that includes blue-chip multinational companies (such as Carrefour, Selgros, REWE, Leroy Merlin, British American Tobacco, JTI, Philip Morris, TNT, DHL, KLG, XPO, IDL), large Romanian companies (such as eMAG, Sameday, Cargus, Dacia, Macromex), as well as numerous reputable SMEs.

Constantly improved and highly scalable, the transformative solutions that the company provides are aimed at digitalization, mobility, automation and robotisation of each customer’s needs, and have turned Smart ID into a trusted, long-term Partner for its top local and international clients.

Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital, said: “We firmly believe in the impact that technology, through automation and digitalisation, will have in the region’s economic growth and future. Smart ID garnered our attention and convinced us with its strong results, being not just a software integrator but an end-to-end Romanian independent solutions provider, with an ambitious and excellent technical management and execution teams. We envision multiple avenues through which we can tangibly contribute to the company’s expansion. Through the new partnership, Smart ID will fully benefit from Sarmis’ strategic expertise and financial power, having at its disposal EUR 20-30m for organic growth and acquisitions.”

Daniel Boangiu, CEO and co-founder of Smart ID, said: “We are honoured we earned the trust of SARMIS Capital. We believe this deal will make us a formidable player at both local and regional levels. Our responsibility from now on is to make the deal create unmatched value for the company, by adding to the resources that helped us to become one of the most important companies in the industries we are targeting and to our most important asset – our people, a unique combination of experts, new capabilities, new technologies, better processes and, most of all, better solutions for our existing and future customers.

Importantly, this deal helps us to keep our purpose alive, and to become more powerful and more focused, as to build a promising future for our customers, our employees, our Partners, investors and our communities. We expect to bring innovation, embedded expertise, technologies of the future and financial power to keep growing and improving, providing a better life and better possibilities. With all these in place we will build the strongest regional player.”

Under the new shareholding structure, Smart ID plans to consolidate the company’s leading position through the accelerated development of the business and increase of its client base, branching out with proven, successful solutions towards new sub-sectors, as well as through strategic local and regional acquisitions, all of these with a continued focus on ESG (Environmental, Social, Governance), sustainability and CSR (corporate social responsibility).

Following this deal, Daniel Boangiu will remain an important shareholder and continue to act as the CEO of Smart ID, with full responsibilities regarding the company’s strategy execution.

SARMIS was advised in this process by Radu Tărăcilă Pădurari Retevoescu SCA (RTPR) (legal and transactional), EY Romania (financial and tax), Kearney (commercial). Smart ID and its shareholders were advised by bpv Grigorescu Ștefănică (bpvGS) (legal and transactional), Dobrinescu Dobrev SCA (tax) and Path-Finder Corporate Finance (sell-side advisor). Special thanks go to Kogaion Investments who was instrumental for the deal in multiple roles.

Smart ID is the second investment made by SARMIS Capital in Romania, after the recent acquisition of a majority stake in Corporate Office Solutions – COS (leading provider of custom fit-out services).

Any further enquiries regarding this press release may be addressed at email: cornelia.ureche@smartid.ro

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in, and dedicated to investing primarily in, Romania and adjacent countries.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio investments into local/regional champions in their fields.

SARMIS Capital’s first fund is backed by some of the most prestigious counterparties around the world, including endowments, development financial institutions, family offices and high net worth individuals. It is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).

2021

Sarmis Capital invests in Corporate Office Solutions – COS, the leading Romanian provider of custom fit-out services (OCTOBER 2021)

Bucharest, 19 October 2021

SARMIS Capital, the largest private equity fund dedicated to Romania and neighbouring countries, has acquired a significant majority stake in Corporate Office Solutions (COS), the leading integrated office fit-out services provider in Romania, for an undisclosed amount. SARMIS is partnering with Mr. Christophe Weller, the CEO and founder of the company, supporting him in achieving an accelerated growth strategy.

COS is the undisputed market leader in the office fit-out solutions space in Romania. It was the first local company to provide fully integrated “design & build” services and has continuously developed its range of services, having a proven track record of successful delivery of large-scale projects for blue-chip clients (such as Microsoft, Google, Amazon, UiPath, ING, KPMG, Accenture, Nestlé). Since its founding in January 1998, the company has grown to become the leading specialist in Integrated Design and Build solutions for interior spaces, including workplace consultancy, conceptual and architectural/mechanical and electrical design, supply and installation of furniture, floorings, light fixtures and interior partitions, as well as turnkey interiors construction fit-out covering all architectural and M&E parts. During its 24 years of activity, the company has delivered professional services and top-quality products to more than 2,300 clients that needed to create or transform their workspaces, in more than 17,000 successful projects. COS holds the sole local authorized dealership of Steelcase (worldwide leader in the office furniture industry, who first awarded the company the coveted Platinum status in 2016) and is also the representative of Interface (worldwide leader in modular carpet industry), in addition to other reputable brands. The company operates from local offices in Bucharest, Cluj-Napoca, Timisoara and Iasi.

COS aims to enhance its business model further under the new shareholding structure, by actively focusing on ESG and Corporate Social Responsibility initiatives, expanding to new sectors (such as private healthcare, private education and hospitality) and geographies, both organically and through strategic acquisitions.

“After 24 years in Romania, COS needed a change to keep stretching its market coverage, geographically and in new business segments, and accelerate its growth by reaching new heights. By partnering with the SARMIS team and benefiting from its focus and know-how in supporting entrepreneurial companies, we are developing an ambitious and creative business model that will sustain COS leadership position for many years ahead.”, said Christophe Weller, CEO and founder of COS.

“From our very first discussions with Mr. Weller, it was obvious that SARMIS and COS share the same values and objectives: the highest standards of work, services and product quality, efficiency and maximization of potential, leadership in one’s field and a committed interest in sustainability. Partnering was therefore a natural, logical outcome. We look forward to strengthening the market leader with our proven consolidation capabilities, financial backing and expertise, as well as supporting its development on a regional scale.”, said Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital. “Our investment in COS is just the first of many aimed at supporting local entrepreneurs and their interesting business projects. We see a lot of potential in various market sectors and are excited to support the local ecosystem grow.”, added SARMIS representatives.

For this transaction, SARMIS was advised by Radu Tărăcilă Pădurari Retevoescu SCA (RTPR) (legal and transactional) and PwC Romania (financial, tax and commercial), while COS’s legal advisor was Ariana Lăța from Lăța & Associates.

 

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SARMIS Capital is a leading independent private equity fund manager established in 2019, focused on mid-market opportunities in Central and Eastern Europe. It is the largest private equity fund raised in, and dedicated to investing primarily in, Romania and adjacent countries.

SARMIS looks to partner with and support mid-market entrepreneurial companies to prosper and grow, by working closely and collaboratively with their management teams and by contributing substantial strategic, operational and management expertise. Headquartered in Bucharest and built on the established reputation of its founding partners, the fund is sector agnostic. It searches for the best opportunities to create value and aims to transform its portfolio investments into local/regional champions in their fields.

SARMIS Capital’s first fund is backed by some of the most prestigious counterparties around the world, including endowments, development financial institutions and high net worth individuals. It is supported, among others, by the JEREMIE Holding Fund Romania, an investment programme between EIF and the Government of Romania, whereby EIF acts on behalf and in the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013. Furthermore, it benefits from the financial backing of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020).