Project started in 2004
Project ended in 2005

About the company: A major modern brewery in the Urals with a large market share in Yekaterinburg and the Sverdlovsk Region. The plant had inherent internal reserves permitting to improve the products quality, to enhance price effectiveness, to streamline pricing policy and capacity ratio.

Investment Concept of the Project: The idea of the project was to gain control of the most attractive independent brewery in the industry lacking any enterprises comprising transnational corporations, and to increase its value. The project included several investment strategies: organic growth, restructuring and leverage. The absence of any substantial debts permitted to finance the acquisition of shares primarily through use of borrowed money, and to undertake one of the first LBO on the Russian market.

It took few months to streamline operating and production activities, to develop a long-term program for converting Patra into the leading brewer in the region. Project success prompted strategic investor interest to Patra. The potential for much greater consumption of beer in the region and a favorable competitive environment made it possible for the primary buyer to quickly take the dominant position in the local marketplace. In 2005, Patra was sold to Heineken Corporation.