Short Description

Policolor is a leading Romanian producer of paints and lacquers. The Company was established in 1965 as the largest Romanian producer and provider of complete solutions for the consumer market but also for the auto and industrial markets. Romanian American Enterprise Fund participated in 1997 at the privatization of the Company and became majority shareholder, acting jointly with another PE fund. Under the direct supervision of RAEF, Policolor expanded in the region through the acquisition of Orgachim in Bulgaria and undertook a deep restructuring process. The Fund sold its participation in 2008 to the co-investor.


Fund Romanian American Enterprise Fund
Sector Industrial
Country Romania and Bulgaria
Entry October 1997
Exit July 2008

As Policolor was a public listed company, the transaction was closed on the Bucharest Stock Exchange.

Fund’s Return 6.5x cash on cash
Fund’s Contribution The Fund had an important role in making Policolor the regional leader in the South-East European area in the paint and coating sector. Through the acquisition of Bulgarian peer Orgachim in 1998, Policolor became the first industrial company expanding outside the borders of Romania. The Fund was actively involved in the restructuring and growth of Policolor and succeeded to make the Company more efficient and to develop an operative and flexible organization which was able to anticipate and answer quickly to the changes of the business environment. The restructuring process was long and complex because its early stages had to be implemented during the economic decline of the Romanian economy in 1998-2000.