Expansion Continues: mmcité Acquires Stadium Seating Manufacturer Kovostal

Published: 14.12.2023 Related countries:  Thailand Thailand

Czech-based urban furniture manufacturer diversifies portfolio with strategic acquisition

In a strategic move to broaden its scope, mmcité, a manufacturer of urban furniture whose shares have been traded on the Start market of the Prague Stock Exchange since this summer, has acquired Kovostal, a producer of stadium seating and tribunes based in Jarošov near Uherské Hradiště. The purchase was made from entrepreneur Josef Pšurný. Kovostal has been engaged in the production of seats and tribunes for stadiums, sports and multifunctional halls, theaters, and cinemas since the 1990s, serving prestigious clients such as the O2 Arena and leading football clubs.

"We are pleased to have fulfilled our acquisition goals in such a record time, incorporating not only a production facility that perfectly suits us but also Kovostal's entire production program," commented David Karásek, Chairman of the Board of mmcité. He added that seats and tribunes are products that mmcité intends to further develop.

While the exact purchase price was not disclosed, part of the funds for the acquisition came from this year's public primary offering on the Prague Stock Exchange. The proceeds from the July IPO amounted to 160 million Czech crowns, with one million shares sold at 160 crowns each. More detailed information about the transaction value is expected to be revealed at the beginning of the next year when mmcité presents its financial results for the current year.

Kovostal exports its products to almost the entire world, with main destinations including Germany, Austria, Sweden, Norway, France, Hungary, and Slovakia. Notable references include the installation of seats and tribunes in the O2 Arena in Prague, the football stadiums of AC Sparta Prague, Red Bull Arena Salzburg, Allianz Arena Munich, and the Olympic Stadium in Berlin.

Apart from the Czech Republic, the buyer, mmcité, remains highly active in international markets. The company, whose main shareholder is still the designer and entrepreneur David Karásek even after going public, specializes in urban furniture elements, bus stops, shelters, park benches, fountains, drinking fountains, and bicycle stands.

Approximately 80 percent of the company's production is exported to over thirty countries, with Brazil and the United States being important markets alongside European countries. mmcité's products can be found worldwide, including at Charles de Gaulle Airport in Paris or the upper station of the cable car leading to the highest European peak, Mont Blanc.

In a recent investor announcement, mmcité reported a year-on-year revenue increase of 27 percent to approximately 800 million Czech crowns for the first three quarters of this year. The growth drivers were particularly the Brazilian and American markets, and the company successfully initiated business operations in Mexico. Annual revenues of up to 1.3 billion Czech crowns are expected for the entire year.

The EBITDA operating profit increased to 83 million Czech crowns for the first three quarters compared to 61 million for the entire previous year. The company expects an EBITDA result between 90 and 100 million Czech crowns for the twelve months of this year, surpassing the original target of 85 million.

As of Wednesday's closing on the Start market, dedicated to smaller and medium-sized enterprises, mmcité's stock was priced at 210 crowns, representing a 31 percent increase from the IPO subscription price.

Source: E15

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