AFTER THREE YEARS WENT BY IN ROMANIA WITHOUT ANY DEALS "Abris Capital Partners" breaks the ice and buys "Cargus" from DHL

• Cezar Scarlat, "Abris Romania": "We have 450 million Euros available to invest in Poland, Romania and Ukraine, in that order"

Investment fund "Abris Capital Partners" entered the Romanian market, buying courier company "Cargus" from DHL, after three years of watching the market from the shadows.

"We are very eager to enter Romania (ed. note: to make investments)", said Cezar Scarlat, Managing Director and Administrator of Abris Romania. According to him, the fund has 450 million Euros available for investments in Poland, Romania and Ukraine, in that order.

"We hope that next year we will make one or more deals", said Cezar Scarlat. The manager of "Abris Romania" went on to say that up until now, the time wasn't right to invest in Romania.

DHL, the largest courier and logistics company in the world, yesterday announced that it has reached an agreement to sell its domestic courier businesses in Romania, which were operating under the Cargus brand, to "Abris Capital Partners", an investment fund specializing in Central and Eastern Europe.

The two companies signed a deal for the sale of the shares on October 18th, 2012, and are looking to complete the transaction by the end of the year or in Q1 2013, subject to approval from the Romanian Competition Council.

Cezar Scarlat said that "Abris Capital" is on its fourth acquisition in this line of business, after those it made in three other countries such as Croatia, Serbia and Poland.

"Considering the example of Siodemka, a domestic courier business in Poland, on a market which is far more competitive than Romania, we have every reason to have faith in the growth of Cargus", Mr. Scarlat said.

In 2008, German company DHL bought the entirety of domestic courier company Cargus. According to some sources, at the time, the deal was estimated at 50 million Euros.

Cezar Scarlat declined to comment on the value of the deal and on the estimates which took place four years ago.

• DHL says it will help the investment fund during the transition period

Even though four years ago, DHL was looking very pleased with the acquisition of Cargus, voices in the market are saying that the Germans did not succeed in integrating the Romanian operator.

Officially however, DHL announces it will continue to support "Abris Capital", during the transition period.

According to yesterday's press release, the deal will make Abris the owner of Cargus, the second largest company on the domestic courier market in Romania, including here the customer base, employees and operating locations, along with all the domestic courier operations which Cargus owns in Romania.

The domestic company will continue to provide the international services of DHL through its own sales force and network.

According to Cezar Scarlat, after an extended recession, Romania is beginning to look like the second largest economy in Eastern Europe, and with a renewed potential for growth.

Alex Neuber, Senior Partner at Abris Capital Partners, said: "Our confidence in our ability to increase and expand the business of Cargus comes from the strong results of Siodemka, a domestic courier business which we acquired in 2011. Its management system managed to turn Siodemka into the main beneficiary of the growth of the Polish e-commerce sector and we intend to share the most innovative and efficient solutions between the Polish and Romanian platforms, to provide solid solutions to our retail and e-commerce customers on both markets".

• Gian Sharp, co-investors wants to reenergize the business

According to the quoted press release, Gian Sharp will remain part of the management structure of Cargus, being the designated CEO and co-investor with Abris.

He said: "After an expertise of more than 20 years together with DHL, including as CEO of DHL Romania since back in 2001 and CEO of Cargus, since 2008 and until recently, I am pleased to be part of a team with Abris to re-energize the business and to help it grow".

The deal still needs to receive the approval of the regulators.