Successful M&A transaction closing: Genesis Capital acquired majority in 11 Entertainment Group of Hungary

Genesis Private Equity Fund III (GPEF III), a private equity fund advised by the Prague-based Genesis Capital, has signed the acquisition of 61% of 11 Entertainment Group, provider of indoor family entertainment in Hungary.

GPEF III partnered with the business founder, Mr. Stefan Fritsch, to build a family entertainment specialist in the CEE region. It is the eighth investment of GPEF III and its historically first independent investment in Hungary.

Our Client 11 Entertainment Group provides indoor family entertainment in trampoline parks, indoor playgrounds and laser tag arenas in Hungary. The founder and owner of the business, Mr. Stefan Fritsch, started the first playground in 2009 as a hobby-business together with his wife Réka Kovács to entertain his own children, while being a top manager in the automotive industry.

This point was an offtake of Mr. Fritsch’s career as entrepreneur. ”Entrepreneurship was a passion for me since I was a little boy selling comics at the street corner of my home town. As entrepreneurs we have the full freedom to influence the future in a direction we want to have it and by that we can generate the positive flow needed to overcome the immense hurdles and work load on our way to make things happen”, says Mr. Fritsch.

Since 2009, Stefan and Réka grew the business to 5 parks (Cyberjump) accommodating more than 500,000 visitors annually. The business has ambitions to expand further into the neighbouring countries to become a Central European family entertainment leader; to support its growth it was looking for a well-capitalised private equity investor with extensive international experience. In preparation for this plan, 11 Entertainment Group was recently strengthened by experienced top managers who also become shareholders of the group. GPEF III and Mr. Fritsch both allocated potential further capital to support the growth plan.

“The capital entry of Genesis will enable us to focus on rapid expansion of our entertainment concept throughout Central Europe, says Stefan Fritsch, while adding: “and it is a proof that our team has done an excellent job in building the business to date. By having Genesis on board with its expertise and 20 years of experience in multiple industries and branches, we will get useful input to become even more professional in developing our growth”

“We perceive the investment into 11 Entertainment Group as an opportunity to support the strong entrepreneurial story of Stefan and realize the growth potential in currently underdeveloped family entertainment markets in Central Europe” comments Radan Hanzl, Partner at Genesis Capital, a local investment advisor to GPEF III. “We believe that Stefan’s track record in operational excellence and his approach to business expansion make 11 Entertainment Group an excellent platform for further growth”, Radan Hanzl concludes.

“As a bonus, this transaction also fulfils our vision of GPEF III expanding its region of operation beyond its traditional core markets of the Czech Republic and Slovakia”, adds Tatiana Balkovicová, Investment Director at Genesis Capital.

Sell-side transaction advisory was provided by Absolvo Consulting and Baker McKenzie.

 

For more information about trampoline park please watch the video introduction: Cyberjump Hungary

or visit website: https://www.cyberjump.hu/en/

 

Source: official press release