Zetkama, a portfolio company of Riverside, is a manufacturer of industrial valves in Poland and in the Central Europe region.  The valuation achieved at the IPO represents 7.3x 2004 EBITDA.

Zetkama operates production facilities in Klodzko, Poland and employs 420 people. With sales of $23.0 million, the Company is the market leader for several types of industrial valves on the Polish market.  More than 70% of Zetkama's revenues are generated from export sales to regions such as Western Europe, Central and Eastern Europe, Asia, Africa and South America.  Zetkama has been growing dynamically over the past three years and has achieved a CAGR of EBITDA from 1999 to 2004 of approximately 20%.  

Zetkama's IPO raised nearly $4 million from the new issue of shares, most of which will be invested to expand the production base and fund the development of new products, enabling the Company to continue to grow earnings at a robust rate. 

INFO SOURCES

The Riverside Company

Piotr Misztal Partner
+ 48 22 520 2770 pmm@riversideeurope.com

Christine Croissant Director of Communications and Marketing
216-344-1180 cmc@riversidecompany.com

FIRMS

The Riverside Company, with offices throughout Europe (Budapest, Prague, Warsaw and Munich) and North America (New York, Cleveland, Dallas and San Francisco) is the leading private equity firm investing in premier companies at the smaller end of the middle market.  The firm has nearly $1.3 billion of capital under management.  In Europe, the firm has introduced two funds: Riverside Central Europe Fund and Riverside Europe Fund II. In America, in addition to four pre-1995 acquisitions, Riverside has brought to market The Riverside Capital Appreciation Funds of 1995, 1998, 2000 and '03.    Riverside's European and American funds have attracted investors from pension funds, endowments, funds-of-funds, insurance companies and banks.  Since its inception in 1988, Riverside has acquired a total of 104 companies (94 in North America and 10 in Europe) across a variety of industries. 

Zetkama is the leading Polish manufacturer of industrial valves and specialized cast iron.  The Company produces a wide array of valves. Zetkama also manufactures grey and nodular cast iron earmarked for various industries including industrial robots and specialized farming equipment.  The Company's products are commonly used in heating plants and systems, air conditioning and ventilation systems, water sewage plants, industrial plants and the shipbuilding industry.

PEOPLE 

Mr. Piotr Misztal, Riverside's partner in charge of the transaction.