KPMG advised on the sale of leading specialized retailers Progamingshop.sk and MP3.sk
KPMG advised on the sale of Progamingshop.sk and MP3.sk
KPMG Deal Advisory acted as the exclusive M&A advisor to majority shareholder of ARAŠID, leading specialized retailer of games and gaming accessories Progamingshop.sk and one of major retailer of mobiles and accessories MP3.sk to WESTech, operator of iStores retail chain.
Originally an online retailer, Arašid has recently transformed into an omnichannel retailer with fifteen physical store locations. In addition to its leading position in Slovakia, Arašid holds strong market positions in the neighboring countries. The company was founded in 2002 by Pavol Dlhoš and has been developed in cooperation with Slovak-American investor SLOVAK AMERICAN ENTERPRISE FUND since 2008. The company reported revenues of 16 mil. EUR in 2017.
WESTech, a member of multinational ELKO group, operates the largest network of premium Apple reseller stores in Slovakia and the Czech Republic under the iStores brand.
„WESTech is an expert in complex IT and expansion of our portfolio by entering into progamingshop.sk and MP3.sk was a next logical step for us. WESTech thus provides sales, distribution, servicing and software solutions for a broad range of products and services in both business and entertainment segments.“ said Matej Sršeň, General Director of WESTech, adding: „By entering Arašid, we expand our retail network and come closer to our customers. We believe that working closely with the existing management combined with our know-how, business relations and financial capacity, will lead to better shopping experience for our customers and ensure further growth of the company.”
Pavol Dlhoš, Director of Arašid said: „We are happy that by entry of WESTech we will become a member of the large multinational ELKO group. We consider it as a sign of confidence in our capabilities and growth ambitions. It is also excellent news for more than a hundred of our employees and all our business partners. Thanks to our new strong partner we will be able to expand our sales network and further increase satisfaction of our customers.“
Mary MacPherson, President and CEO of the SLOVAK AMERICAN FOUNDATION: „Since our investment in Arašid in 2008, we have attempted to make the right decisions to support the Company and its growth. During this time, the company grew at a rate of 6 times to become the leader in specialized gaming and mobile retail segments. We believe our exit is the right decision and WESTech is ideal investor for Arašid and we are thrilled at the opportunities that open for Arašid by this transaction. Since transformation of our investment fund into a non-profit foundation, our aim is to support innovative businesses in Slovakia through our US Connections program and we no longer make equity investments. Thanks to this transaction, we will be able further increase our support for the start-up ecosystem in Slovakia and help more companies to realize their potential.“
"We are pleased that we have helped SLOVAK AMERICAN FOUNDATION successfully exit its investment in ARAŠID. We believe that the WESTech and ARAŠID partnership opens new opportunities for both sides", said Peter Rado, senior manager at KPMG Deal Advisory in Slovakia.
KPMG Deal Advisory acted as an exclusive M&A advisor to SLOVAK AMERICAN FOUNDATION. KPMG assisted the client through all steps of the transaction process resulting in closing of transaction in July 2018.
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