DELTA legal provided legal advice to the shareholders of STS Olbramovice, a Czech company long active not only in the Czech market, but also in neighbouring countries in the field of agricultural technology production for livestock production and related services. The company is strategically located about 60 km from Prague. The decision to sell a successful company was not an easy one. The company’s roots date back to 1945, the selling shareholders had worked there for many years, and after successful privatization in the early 1990s had spent more than a quarter of a century shaping the company into its current form. At the closing date, the company had 68 employees and turnover of more than CZK 125 million. The key requirement for the sale was to find a reliable partner that would ensure the continuation of the company’s tradition, production and jobs. After the attempt to find a suitable successor among the closest people within the planned generational exchange failed, all requirements were eventually met by SkyLimit Industry, a variable registered capital investment fund, which, through its company Domur Investments, offered the owners the desired continuation of production and their legacy.
The transaction was a first for SkyLimit Industry. By acquiring STS Olbramovice, the investment fund initiated its plan to gradually build its own engineering industrial group, of which STS Olbramovice became a part after the transfer.
DELTA legal provided comprehensive professional legal services throughout the entire transaction, from consulting on due diligence findings, through preparation and negotiation of contractual documentation, to transaction settlement support to STS Olbramovice shareholders. The sellers passed STS Olbramovice on to their successors without incident, knowing that the future of the company is safe.
DELTA legal’s team was led by Pavel Fára and Libor Vacek, with the assistance of Jiří Absolon and Lukáš Koukal. The shareholders’ financial advisors were EY, and the acquisition was financed by UniCredit Bank Czech Republic and Slovakia.
DELTA legal is a dynamically growing law firm bringing together attorneys with extensive experience from international firms, but with profound knowledge of the Czech market, legislation and local business practice. This was the first in a series of successful transactions in 2017.