|
The leasing market has seen its first acquisition: last week Europlan announced the purchase of Kelvin, the leasing subdivision of the company Rolf (trade name Rolf Leasing). Profil wrote in issue No. 46 that an enlargement trend has been noted in this sector and that mergers can be expected in the near future. Last week $20 million was spent on acquiring 100% of the company, through which Rolf – a large seller of imported cars – increased its sales turnover using leasing operations. Following the deal, Europlan will absorb Kelvin along with its leasing portfolio (about 2,000 automobiles) and $29 million in assets (prior to the deal Europlan's assets amounted to $50 million). Rolf will now concentrate on its core business. A source in the company said that the revenue from the deal would be used to build new dealerships, of which there are currently 15 in Moscow and St. Petersburg. The company plans to open another four next year. The leasing division was sold on condition that the buyer would subsequently provide leasing services to Rolf clients.
Europlan has also seen a change of ownership in its time - Baring Vostok Capital Partners bought it from Delta Private Equity Partners (formerly Delta Capital) last year. The value of the deal was not disclosed at the time. Prior to the deal the company was called Delta Leasing and was one of the fastest growing players on the market. The company is now geared for more rapid growth, following the purchase of an operating business and has set itself the target of becoming the largest player on the Russian automobile leasing market – after the acquisition its portfolio amounts to over 3,600 automobiles, and equity will increase to $27 million.
Market participants do not consider the cost of the deal to be low. RESO-Leasing General Director Andrei Mokin said that Kelvin has a high-quality portfolio, as transport vehicles are considered to be among the most liquid of leased assets. According to the specialist, the company could not have been sold for less than $15 million - $17 million. As a rule, to appraise a leasing company, the company's equity is multiplied by an adjustment coefficient (from 1.5 to 4.5), depending on forecast revenue. Kelvin's equity amounts to $10 million, which means that the company received a good evaluation. By all accounts, this will not be the last merger deal on the market. Delta Private Equity Partners Managing Director Gennady Lozovsky told Profil that the fund still has a second leasing company Delta Leasing (formerly Delta Leasing Far East). Representatives from various leasing structures have approached the fund with offers to buy up their companies. Lozovsky said that all these companies were owned by equipment producers or banks, but Delta Private Equity Partners has not accepted any offer so far. "Either we did not like the leasing portfolio, or the price," he said. However, the company does not rule out that next year it will acquire another leasing company on the marketSource: Inessa Papernaya, Profil No. 48/27, December 2004 Back to Projects List 
|
