PE in CEE - Urgent Cargus
Country: Romania
Romania’s courier market consolidator
COUNTRY | Romania | RETURN | 3.8x |
GP | Abris Capital Partners | GROWTH | 4x more parcels shipped |
INVESTMENT | EUR 32 million | EMPLOYMENT | 1,900 new jobs |
SECTOR | Logistics | INVESTMENT TYPE | Buyout |
INVESTMENT | March 2013 | FUND OWNERSHIP | 98% |
EXIT | December 2018 | EXIT ROUTE | Sale to a PE house |
Investment rationale
Despite being # 2 in Romania, Cargus was a small player in Romania’s fragmented courier market when DHL put it up for sale after deciding to exit from domestic operations. Abris saw a clear opportunity to deploy sector expertise gained from a prior courier investment in Poland. Its investment thesis was to create a leading player by consolidating the market and focusing on the rapidly growing B2C segment.
Deal history and structure
Abris acquired 98% of Cargus from DHL in 2013 and 100% of Urgent Curier (the # 3 player) in 2014, using a mixture of equity and debt in both transactions. The two companies were merged in 2015 under the name Urgent Cargus. Acquisition of five smaller competitors further consolidated the courier/parcel market.
