KJK Management, an equity investment group based in Luxembourg, announced that KJK Fund III, a €250 million private equity fund launched in 2018, has completed the purchase of 100 percent of the shares of Elan. Best known in our sector for its important ski division, the Slovenian company, founded in 1945 and headquartered in Begunje, operates under three other main divisions: advanced and high-performance racing and leisure sailing yachts, engineered solutions for large multi-purpose arenas and stadiums, and highly technical advanced composite components utilized in renewable energy.
The terms of the acquisition were not disclosed. According to company officials, the Elan group grew at a double-digit rate last year, reaching a total turnover of €85 million. The winter sports department accounted for slightly more than half of the total sales with a 10 percent increase as compared to the previous year. According to Elan's management, the company achieved a higher gross profit in the first quarter of 2019, but the amount was not published.
Elan had been a property of the Slovenian government for a long time. The last time the ownership structure of Elan had changed was when Merrill Lynch International and the investment company Wiltan Enterprises secured its shares in 2015.
Elan's management team, led by Jeffrey Tirman, will continue managing the company. Tirman will also assume the role of chief executive of KJK Sports, a newly created holding company that combines Elan and KJK's two other sports and outdoor-related investments recently made in Eastern Europe, including an Estonian-based water sports company, Tahe Outdoors, and Leader 96, a Bulgarian-based bicycle manufacturer.
The acquisition of a 50 percent stake in Tahe Outdoors was the first investment made by KJK Fund III in December 2018. The funds injected were used mainly to acquire Bic Sport, the former French-based leader in the global windsurfing market, which subsequently diversified into surfboards and kayaks and become most recently a global leader in stand-up paddleboard (SUPs).
Founded in 1989, Tahe manufactures its products in Estonia, France and Germany and sells its products in 50 countries. By taking over Bic Sports, which has a 40-year history, Tahe has become the second-largest water sports equipment producer in Europe with an expected consolidated 2019 turnover of €42 million and Ebitda of more than €5 million.
The KJK Group of companies manages several funds focusing on European Frontier markets, with eight offices across Europe. For Elan and KJK, the acquisition is believed to open significant synergies across KJK Sports' portfolio, which it is hoped will enable the holding company to become a more efficient global, all-season active outdoor and sporting goods company.
