After 4 years of collaboration with Avallon MBO and Genesis Capital, Stangl Technik Holding rises as one of the leaders among Installation companies in Poland and the Czech Republic.

Company	Stangl Technik Holding Ltd
PE/VC investor	Avallon MBO Fund II
Investment period	2018-2022

1.7

Sales growth

2.5

EBITDA growth

Stangl Technik Holding Group is a leading provider of comprehensive engineering, technical and building installations for commercial objects in Poland and the Czech Republic. The companies that form the group, earlier subsidiaries of the EQOS Energie, were put on sale by the previous owner due to financial difficulties within the holding.

The cooperation of Avallon MBO and Genesis Capital with the company's executives led to the creation of a holding structure under a new brand: Stangl Technik Holding.

During the investment period, Stangl Technik Holding significantly expanded its operations, achieving a 65% increase in revenue, a 175% increase in EBITDA, and a 25% increase in employment. Notable contracts, such as the construction of the Mercedes factory in Jawor and the Widok Towers office building in Warsaw, were successfully undertaken.

After a four-year investment, the private equity funds sold their shares to a German branch of the international industry powerhouse - SPIE - listed on the Paris Stock Exchange.

Main objectives
of funding

MBO transaction with potential to leverage the significant position at the market and scale through organic growth.
Increase the number of high value-added projects carried out as a general contractor.
Establishment an independent, stand-alone organization after acquiring two companies in Poland and the Czech Republic as a carve-out transaction.

What changed in the company after PE/VC investment

Carve-out from the parent company structures; establishing an independent holding structure with companies in Poland and the Czech Republic under the new brand Stangl Technik.
Implementation of a comprehensive and tailor-made managerial bonus scheme.
Increasing the company's guarantee lines by 100%, from EUR 9.2m to EUR 18.4m, resulting in scaling and job creation.
Increasing the percentage of projects carried out as general contractors from 38% to 65% and projects in the Design & Build format.
Focusing the company's attention on electrical and mechanical installations for the industrial, hotel, office and public sectors
Shifting installation capabilities from low-margin non-core segments to the low-voltage installation segment.
Improving working capital management and increasing EBITDA margin from 6% to 11%
Successfully implementing the buy & build strategy through acquiring ST Security. ST Security's well-trained workforce, experience in low-voltage electrical installations and possession of an NSA security certificate enabled Stangl to become one of the few providers of technical building systems for strategic public organizations in the Czech Republic (including the military and government). This resulted in a significant increase in the scale of the Group's operations and a top4 position in Poland and top3 in the Czech Republic.

ESG related initiatives and accomplishments

The company’s smart building projects reduce energy consumption and ensure security, including national security, in strategic public and military facilities.
The company created and implemented a new corporate governance system focused on transparent communication with stakeholders, including setting up internal procedures to ensure employee satisfaction, health and safety.

Working with the Fund, we expanded the company from the top ten to the top three on the Polish and Czech markets. You can count on one hand the number of companies that can execute investments of 20-25-million- euro scale.

Martin Horák

Chairman of the Board of Directors of Stangl Technik Holding