Porta Finance advises City Service on the privatization of ZZN in Poland

18 December, 2012

AB City Service, the leader in facility management in the Baltics and Russia, has on December 17, 2012 completed the acquisition of 100% of shares in Zespół Zarządców Nieruchomości WAM Sp. z o.o. („ZZN”) from the Ministry of Treasury of Poland. City Service was advised in the transaction by Porta Finance. Acquisition price of ZZN’s shares is PLN 45 million (EUR 11 million).

“This transaction signifies increasing economic ties between Poland and the Baltics as well increasing importance of local capital in mergers and acquisitions in the region. We are proud to have advised City Service on this important transaction for the client”, said Julijus Grigaliūnas, partner of Porta Finance.

Žilvinas Lapinskas, General Director of City Service, stated: „Entering market of Poland is the most important step in the history of City Service group since 2006, when we started activities in St. Petersburg, Russia”.

Privatization of ZZN was announced in June 2012. ZZN provides residential apartment building management, technical supervision, cleaning and other utility services, also generates and supplies heat in some of the managed buildings.

ZZN is the largest provider of residential facility management services in a highly fragmented Polish market. The Company has a nationwide coverage across Poland through its 22 facility management branches and over 100 offices. It has 900 employees. ZZN’s unaudited results for 10 months of 2012 were following: revenues of PLN 80.6 million (EUR 19.7 million), net profit of PLN 2.6 million (EUR 0.6 million). Unaudited total assets of ZZN as of October 31, 2012 were PLN 88.6 million (EUR 21.7 million), including liquid funds of PLN 20.5 million (EUR 5.0 million), and shareholders’ equity was PLN 80.6 million (EUR 19.7 million).

Further information:
Julijus Grigaliūnas
Partner, Porta Finance
Tel: +370 5 205 3123