New shareholders will expand KZA‘s portfolio of services and solutions
FIMA, a company of intelligent engineering solutions controlled by a NYSE-listed investment fund, became a majority shareholder in Krakowskie Zakłady Automatyki S.A., the railway infrastructure company from Krakow.
Poland is one of the largest railway infrastructure markets in Europe. The current EU financial perspective for Poland includes railroad investment plans worth around €16bn, and KZA has a strong position in this sector.
Edward Jacek Kwarciak, CEO of KZA said: “The deal between FIMA and KZA will help strengthen our business capabilities in light of the forthcoming high-value public infrastructure modernization projects. It will also expand a portfolio of solutions we offer, enable us to better use our professional staff and reduce business operating costs. There are plans to invest almost €1.5bn in the Polish railway signaling an automation market alone in the next several years”.
The FIMA company, established in 1992, owns companies in Lithuania, Latvia, Belarus, and Poland. More than 500 employees work at FIMA group companies and 140 of them are certified to work in railway projects. For the railway industry, FIMA provides traffic control, communications, power supply, security, passenger and staff information, and railway point heating systems. FIMA has acquired 68% of KZA’s shares.
FIMA’s Director General Gintaras Juknevičius said: “By implementing the company’s development strategy and seeking to use our resources and expertise more efficiently, we are examining opportunities to expand to neighboring countries.
“Poland is one of the largest railway infrastructure markets in Europe. KZA has an excellent position in the segment that is of interest to us. The deal will open the Polish railway infrastructure market and ensure a long-term growth for a whole group of FIMA companies.
“At the same time, we plan to continue KZA’s work. We rely on the existing management and value their competence. We believe that the united capabilities of FIMA and KZA will enable us to compete for a bigger part of the infrastructure projects market.”
To close the deal on the sale and purchase of KZA’s shares, the shareholders of KZA company were advised by BCMS Polska and DZP law firm, the shareholders of FIMA – by WEH Advisors Sp. z o.o., IFP Corporate Finance, law firm Soltysinski, Kawecki & Szlezak and Ernst & Young Sp. z o.o.
KZA (Krakowskie Zakłady Automatyki S.A.) is a Polish company operating on the market of railway infrastructure and control automation solutions, offering services in design, implementation and maintenance of systems as well as project management. The company’s roots go back to 1928. Currently it has 200 employees. Its head office is located in Krakow.
FIMA is a leading company of intelligent engineering solutions in the Baltic region. FIMA’s main areas of work are in implementation and maintenance of railway control and engineering systems, intelligent transportation systems, communications and information technologies, data centers, building management, automation and monitoring solutions. The company’s head office, established in 1992, is located in Vilnius. The main share of FIMA is controlled by an American investment fund MVC Capital Inc.