Elbrus Capital – two landmark transactions at the end of May 2017

16 June 2017   
Elbrus Capital – two landmark transactions at the end of May 2017

Elbrus Capital, a leading private equity fund in Russia and the CIS, closed two landmark transactions at the end of May 2017. The transactions are expected to be value accretive, improve investment returns and exit prospects for Elbrus Capital fund's investors.

On May 30, 2017, Elbrus Capital fund successfully completed merger of SPSR Express and DPD Russia, the two leading courier companies in Russia.  The combined company will become the largest express logistics operator in Russia with a nationwide infrastructure, unparalleled competencies in all areas of logistics, a unique team of experts and enhanced customer offering. GeoPost, a subsidiary of La Poste, a postal service company in France, will become the majority owner of the post-merger business, Elbrus Capital fund will have a significant minority stake with the balance owned by the management team.

On May 30, 2017, Elbrus Capital fund successfully completed non-cash acquisition by OSG Records Management, the leading player in the document storage and information management market in Russia and the CIS, of the Russia and Ukraine operations of Iron Mountain Incorporated.  The transaction will further strengthen OSG Records Management’s positions as the leader in the CIS storage and records management market. The enlarged company will offer its customers the most extensive document storage network in Russia and the CIS region and technologically advanced IT solutions.  After the transaction, Elbrus Capital fund together with the management team will continue to be the majority stakeholder of OSG, while Iron Mountain Incorporated will hold a minority stake.

Dmitry Krukov, Managing Partner of Elbrus Capital, commented: “We are strong believers that investors should select companies with outstanding products and leading market positions.  With these two mergers, we reinforce this investment thesis and believe that both SPSR Express and OSG Records Management will further establish themselves as the leading players in their respective markets.  We are certain that such market leadership will provide ample business growth opportunities, cost advantage and, ultimately, better customer service. We believe that both mergers are value accretive for Elbrus Capital fund's investors and will improve investment returns and exit prospects.”  

“These transactions represent another significant milestone for Elbrus Capital fund for a number of reasons,” said Alexander Savin, Managing Partner of Elbrus Capital. “We see growing interest in the Russian market from international strategic players and financial investors.  A strong strategic commitment to Russia from the two international businesses was a critical factor behind the successful completion of both transactions. These transactions are another testament that high-quality local assets continue to remain attractive targets for international investors.” Mr. Savin added: “The two transactions demonstrate that Elbrus Capital fund has established itself as a reputable local partner for leading European and global strategic players.  We have successfully built on our previous experience of working with multinationals, including Elbrus Capital partnership with The Walt Disney Company, and are delighted with the result of our cooperation with the GeoPost and Iron Mountain teams. We strongly believe that these international teams will help their new local partners by sharing best-in-class global practices with their newly-formed joint-ventures.”

Elbrus Capital Press:
Ilya Novokhatsky
Phone: +7 (925) 518 1798
E-mail: Ilya@dnapr.ru

About Elbrus Capital
Elbrus Capital is a leading private equity business in Russia and the CIS. Elbrus Capital advises private equity funds which have led over 80 acquisitions since 2007. The funds' total assets under management exceed $1 billion. Key investors in the funds are large international institutional investors and international development institutions.

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