 | December 2009Avanko Capital has successfully completed the acquisition of a majority share of the brick business of Diatomovy Kombinat (Diatomite) by Danish Skamol A/S. Avanko Capital acted as corporate finance advisor to Skamol A/S in the transaction. Skamol develops, manufactures and markets thermal insulating materials for heat-intensive industries and passive fire protection. In 2008 the company had a turnover of DKK 259 millions. Skamol is wholly owned by Polaris Private Equity. «Strategically this [the deal with Diatomit] is a very interesting move for Skamol» says Skamol CEO Jesper K. Hansen, «It consolidates our position as the global leader in high temperature insulation for the primary aluminium industry and in diatomaceous earth based high temperature insulation bricks, and it gives us access to the significant Russian refractory market», he continues. «Diatomite has access to excellent raw materials and competitive energy and has every chance to continue being a significant and growing player in the market place.» The deal is structured as an asset deal where all assets and employees relating to the high temperature brick business are transferred into a new company owned by Skamol and Mr. Evgeny Nikiforov. The owner of Diatomovy Kombinat Mr. Nikiforov will remain a significant minority shareholder and board member in the new company Skamol Rus. The transaction was led by Avanko Capital Partner Pavel Filippov. Commenting on the deal, Mr. Filippov said: «It was not easy to structure the perimeter of the transaction and agree on the pricing mechanism in today's conditions, when buyers and sellers see future opportunities and threats in the market very differently. The key to success was shared understanding of value drivers and restraints, and fair approach to sharing benefits and risks.» |
 | November 2009Avanko Capital has sponsored the annual research project of Mergers.ru dedicated to the analysis of the main events and trends in the Russian M&A market during the first nine months of 2009. This analytical report covers all the significant, completed M&A deals that took place in Russia from January to September 2009. Five hundred and forty six deals were concluded during this period, comparable to the results for the same period of 2003 but down by 43% on the same period in 2008 (964 deals). The total market value of this activity was $41.4 bln or about 4.6% of the GDP of the Russian Federation. This was 58% down on the first nine months of 2008. At the same time, compared to the results of the first half of the year, the decrease in market size in value terms has slowed. In the M&A process the largest players continued to dominate: 13% of the deals resulted in 90% of total income, and the average deal value was about $97.7 mln. One third of the market (in value terms) was formed by the largest deals in the oil and gas sector with the participation of such companies as Gazprom Neft, Russneft, Novatek, SeverEnergia. A substantial reduction of cross–border M&A activity, including a twofold decrease (in value terms) of inbound transactions (9% in 2009 as against 18% in 2008), was a negative trend over this period. Among other structural alterations, an increase in the share of consolidation deals was mentioned. These kinds of deals filled a niche temporarily emptied by a lack of merger deals and also pushed back acquisitions. Generally, based on the research data, the market size (in value term and number of deals) is forecast to continue to decrease until the end of 2009. According to experts#39; estimates, market volume in value terms will decrease by at least 40% in comparison with the results for 2008. Nevertheless according to Sergey Boltramovich, head of the Economic analysis department of Avanko Capital, an increase in oil prices is one of the most important drivers of Russian M&A market development. "If this is the beginning of another period of expensive oil, the next wave of market growth is around the corner," he said. Projects members www.mergers.ru is an independent analytical platform dedicated to comprehensive insight and data presentation in the different aspects of theory, practice and legal issues of M&A. Within the project, information on more than 8,800 deals (worth $500 billion) has been accumulated. Download the report in Russian |
 | August 2009Avanko Capital was honored with ACQ Country Awards for Achievement 2009 by the UK based Acquisition Finance Magazine. As a result of a yearly independent poll of industry experts Avanko Capital was nominated among the leaders in the fields of M&A and awarded "Investment bank of the year (boutique) - Russia" for its exceptional performances. ACQ Country Awards for Achievement is considered to be one of the most important prizes to win by recipients, because they're voted for by the top professionals of the industry in global scale. Awards are presented across 35 geographical regions. Guided by the poll's results ACQ Magazine selects illustrious companies that had the greatest impact on the industry in the local country in 2008 / 2009 and performed to exceptional levels during the most difficult period that the global economy has experienced for decades. Grigory Dudarev, Senior partner, Avanko Capital comments:"We are really proud to be the first Russian winner of the ACQ Awards in this category. We constantly strive to provide our clients with service excellence that is defined as the knowledge, experience and skills necessary to achieve success in demanding conditions and this Award is the deserved recognition of the highest level of our efforts". |
 | March 2009Avanko Capital once again sponsored the annual research project by Mergers.ru dedicated to the analysis of the main events and trends in the Russian M&A market. The analytical report covers all the main completed M&A deals that took place in Russia in 2008. The analysis focused on certain periods in 2008, the value of the deals, the types of integration, and industrial and national (domestic and cross-border) deals. Sufficient consideration was given to the assessment of the dynamics of the number of deals and market volumes, as well as the factors that influence them. The report's title - 'A Time of Lost Opportunities' - is primarily related to potential sellers in the M&A market that had a good chance to sell their businesses profitably in the first half of 2008 but didn't take advantage of it. Starting with the second half of 2008, during conditions of growing financial crisis, the national M&A market entered a new phase that was to the advantage of buyers. These are the buyers (especially those that have access to credit) who now possess the key instruments to influence the processes of buying and selling a business. Generally, in 2008 a relatively small decrease (10-15%) in the M&A market took place - both in the number and value of deals - in comparison with 2007, the most successful year in Russian M&A activity. The total market size reached $110.4 billion or about 6.6% of Russian GDP. (In developed countries this figure tends to be more than 10% of GDP). This was practically equal to the aggregated volume of foreign investment in the Russian economy. In M&A, the larger players were dominant: 16% of deals resulted in 89% of total income, and the average deal value was about $104.7 million. The most important events took place in the metals sector (the largest deal was between RUSAL and Norilsk Nickel with the acquisition of foreign metallurgical assets by Russian market participants) and in the electricity industry with the large-scale restructuring of RAO UES of Russia's assets. Nineteen percent of the market (in value terms) was formed by acquisitions of Russian companies by foreign companies. In 2009, a further decrease is forecast, primarily related to the average value of deals. At the same time, the number of deals is not expected to decrease as the experts await the realization of processes in the low and mid-market segments where, at the present time, huge opportunities exist but are only partly taken. As well as this, an increase in the market share of state companies is forecast as they make use of relevant financial resources. As for foreign participants, their activity will not considerably diminish. Generally, the considerable uncertainty originated by the financial crisis presents the new opportunities for stable players that can make profitable acquisitions on account of companies that underestimated their risks in due time. Project members www.mergers.ru is an independent analytical platform dedicated to comprehensive insight and data presentation in the different aspects of theory, practice and legal issues of M&A. Within the project, information on more than 8,200 deals (worth $445 billion) has been accumulated. |
March 2009
Avanko Capital became an official partner in support of an evening reception held for large companies in St. Petersburg and the Leningrad Region where the 'Top Manager' awards ceremony took place. The reception and awards ceremony were organized by the Kommersant Publishing House and took place on March 17 in St. Petersburg.
This event was held to mark the publication of two special supplements produced by Kommersant business newspaper: 'Rating of Top Managers' and 'Results of the Year, 2008.' The supplements were dedicated to the achievements of the most successful managers in leading industries in St. Petersburg, and the most important business events during the past year. During the reception, awards were presented to those managers who have been acknowledged by their colleagues as leaders in their field, and who represent positive business trends for the current year.
At the event, the head of Avanko Capital Grigory Dudarev made a welcoming speech in which he honored the achievements of the award-winners and expressed the hope that industry leaders will be able to contribute to economic growth even during the current challenging economic conditions.
February 2009
Avanko Capital has successfully completed the sale of Brainpower to the BPI Group. Avanko Capital served as financial advisor to Brainpower in the transaction. With this transaction, the BPI Group has entered the Russian market, which was until recently one of the fastest growing of its kind in the world. The management of Brainpower is committed to integrating the BPI Group in future years and securing the company's ongoing success in Russia and the CIS group of former Soviet nations.
Founded in 1984, the BPI Group has become a leading European player in HR consulting and global management, operating 80 offices in 40 European and American countries. The BPI Group employs more than 1,200 consultants.
Brainpower is one of the leading executive search, management selection and HR services companies in Russia and Ukraine with 16 years of successful experience. Brainpower operates through its offices in Moscow, St. Petersburg, Yekaterinburg and Kiev and employs more than 70 highly skilled, multinational specialists.
Mr. Thierry Lemasle, Deputy General Director, BPI Group, said: 'This project will give us a chance to strengthen our partnerships with our worldwide clients in their strategic HR needs. The level of professionalism and the values we share with Brainpower is also a real opportunity to capitalize on our common further development in all HR practices, namely Brainpower's Management Selection and Executive Search, as well as to introduce to Russia the great amount of experience and expertise BPI has developed worldwide.'
Mr. Marc Lucchini, General Director Brainpower Group, commented: 'We are very pleased to become part of the BPI Group. We are convinced that together with BPI we can better sustain our strong growth while offering exciting prospects and expertise to our employees, clients and partners.'
The transaction was led by Avanko Capital Partner Pavel Filippov. Commenting on the deal, Mr. Filippov said: 'This acquisition illustrates that despite the current economic situation, foreign players are ready to make significant investments in Russia provided they see a strong business case and clear commercial rationale behind the deal.'
Commenting the experience of cooperation with Avanko Capital during the transaction, Mr. Lucchini added: 'While working with advisors it is always important to realize that they have clear understanding of your objectives, your company and the industry that you work in. Avanko Capital proved its great strength in depth, while the ability and professionalism of the whole team involved in this project was incredibly comforting. The Avanko Capital team added value at every stage of the transaction process which has saved us considerable time and energy at this very important point of the company's evolution.'
 | December 2008Avanko Capital has won the title "The Best Employer 2008" according to the results of research carried out by the Research center of portal Superjob.ru. The largest Russian HR-portal Superjob.ru carried out a large-scale research in order to identify the most attractive employers of the Russian HR-market. As a result of the research the top companies were selected that provided the "dream jobs" and whose vacancies were of the most interest for potential employees in the course of the year. "The Best Employer" title is the sign of special candidates' confidence and, as a result, the evidence of attractive future prospects and transparency of our company, as well as of its stable market position. We believe that people is the greatest asset a company may have, and Avanko Capital is fairly ranked in the list of the most attractive Russian employers and honored with "The Best Employer" title", – Grigory Dudarev, Senior Partner of Avanko Capital comments. |
November 2008
Avanko Capital, in cooperation with Blackwood Capital, has successfully completed the sale of AVANTA Personnel to Adecco S.A.
Avanko Capital, working with Blackwood Capital, served as financial advisor to AVANTA Personnel in the transaction.
AVANTA Personnel provides recruitment, leasing and HR consulting services throughout Russia with its own and franchise offices in Moscow, St. Petersburg, Vladivostok, Yekaterinburg, Krasnodar, Novosibirsk, Perm, Rostov-on-Don, and Samara, and employs more than 400 people.
Adecco S.A. is a Fortune Global 500 company and a global leader in HR services. Registered in Switzerland, the Adecco Group network connects about 700,000 associates with clients each day through its network of more than 36,000 employees (FTEs) and more than 6,700 offices in over 60 countries and territories around the world.
Elena Novikova, Managing Director of AVANTA Personnel in Russia, said: 'Being part of the Adecco Group will allow AVANTA Personnel to gain resources for active business development, opportunities to improve client servicing quality, and the potential for joint work with Adecco. Together with Adecco Russia, we become partners in Adecco Group, and that will allow us to provide our clients with broader choice of high quality HR solutions.'
Pavel Filippov, a Partner with Avanko Capital, commented: 'This transaction proves that powerful multinationals like Adecco believe in the prospects of market recovery in Russia and are prepared to invest now to ensure a competitive edge and growth in the future. AVANTA Personnel is really a growth-minded and dynamic company, which, effectively backed by Adecco, is destined for success.'
November 2008
Avanko Capital's economic analysis department, in collaboration with ETLA, the Research Institute of the Finnish Economy, has prepared a new joint publication, the 'Urals Cluster Study', that was published in Helsinki at the end of 2008.
This research is dedicated to an analysis of the current state of the economy of the Urals Region (defined as the Ural Federal District of the Russian Federation).
Readers will become acquainted with the main features of the structure, trends, and current and medium-term outlook for the economic development of the Urals, and be presented with a clear view of the region as a potential area for cross-border business development.
The publication covers issues related to the current state of the economy of the Urals in terms of the opportunities that the region, Russia's main oil-and-gas and metallurgical region (with great financial, resource and industrial potential), provides to foreign organizations and companies.
According to Sergey Boltramovich, head of the economic analysis department of Avanko Capital, foreign business owners should take the Urals region into account as one of the priority regions for the development of their businesses in Russia. In particular, Russo-Finnish cooperation has already reaped rewards in the electricity industry, construction, IT, equipment supply and industrial services in the region. But this is just the beginning. The huge potential for international cooperation in the Urals region provides the opportunity to greatly expand cross-border investment projects.
Further information:
Sergey Boltramovich, Grigory Dudarev, Valentina Dyadina, Hannu Hernesniemi ja Kirill Kirilenko. Uralin klusterit (Urals Cluster Study). Tyo- ja elinkeinoministerio (Ministry of Employment and the Economy of Finland). Helsinki. 2008. 216 р. ISBN 978-952-227-135-8. Download in Finnish
2007
Avanko Capital specialists have successfully completed an international research project in collaboration with the Research Institute of the Finnish Economy (ETLA) that resulted in the joint publication - 'Volga Region Cluster Study' - that was published at the end of 2007 in Helsinki.
In this research work, a thorough analysis of the current state of economy of the Volga Region (defined as Privolzhsky Federal District of the Russian Federation) was performed.
The study encompassed a brief review of the main features of the structure and trends of the economic development of the Volga Region. The aim of the research was to present a comprehensive account to foreign readers interested in the subject, as well as to determine key areas of cooperation and to outline main directions and possibilities for the development of international collaboration in different sectors of the economy in this Russian macro-region.
The project came to a number of significant conclusions: numerous possibilities for mutually beneficial cooperation exist in the Volga Region, and the region itself possesses a large consumer market and well-developed multi-sector economy. Sergey Boltramovich, head of the economic analysis department of Avanko Capital, concludes: 'This macro-region was for a long time out of the view of Finnish organizations and companies, but the new conditions create a favorable background for the initialization and development of cooperation in many sectors. Cooperation has already been initiated in such spheres as wood processing, construction materials manufacturing, trade, IT and construction.' In the authors' opinion, the conclusions gained are also relevant to potential investors from Western countries other than Finland.
Further information:
Sergey Boltramovich, Grigory Dudarev, H. Hernesniemi ja Nickolay Lotov. Volgan klusterit (Volga Region cluster study). Kauppa- ja teollisuusministerio (Ministry of Trade and Industry of Finland). Helsinki. 2007. 202 р. ISBN 978-952-489-194-3. Download in Finnish Download in Russian
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