ROCA Investments, part of Impetum Group, announces the signing of the sale-purchase contract for the full takeover of Sarcom, one of the largest producers of paints and varnishes in Romania.
Through this transaction subject to the approval of the Competition Council, ROCA diversifies its portfolio and ensures the succession process of a Romanian entrepreneurial company led for 30 years by its founders, two Romanian entrepreneurial brothers.
“ROCA’s mission is to amplify the potential and accelerate the growth of Romanian companies and brands, so that the dream of many Romanian entrepreneurs becomes a reality. Since the beginning of this year, we have noticed a real need at the entrepreneurial level. The generation of the first Romanian entrepreneurs after 1989, who built solid Romanian brands, with an excellent reputation, is approaching retirement age. Many of them have not secured the succession process, and in the current context an exit to a strategic investor is very difficult. For this reason, we have adapted the ROCA product to such a need, in order to preserve value and carry on business traditions. We are responsible for this legacy of being the successors of such a generation of entrepreneurs, ”said Rudi Vizental, CEO of ROCA Investments.
Sarcom Vâlcea, the producer of the Sticky and Coral paint brands, is one of the largest players in the local paint and varnish production industry, with a history of almost 30 years. The company produces and sells its own products under the two brands in 31 counties in Romania, being present both on the market segment with low and affordable prices, and in the premium area. Sarcom has a range of 380 products such as: washable paint, plaster, enamel paint, thinner, etc. Sarcom has a number of 116 employees, and in 2020, the company recorded a turnover of 56.9 million lei, EBITDA of 15.8 million lei and net profit of 12.3 million lei.
From the point of view of the turnover for the year 2020, at national level Sarcom is on the 5th place in top producers with Romanian capital in the field. When the transaction is successfully completed, one of the objectives considered by ROCA is for Sarcom to become a representative brand for the local industry, and in the next five years the company to reach the top three manufacturers of paints and varnishes nationwide. At the same time, once the transaction is completed, ROCA will focus on optimizing the strategy and management structure within Sarcom, in order to maximize the company’s potential, both at brand and commercial and operational level. This objective will be achieved by facilitating the succession process at the management level, as well as by setting up an Advisory Committee at the company level.
“A very important thing for me is that this company will remain a Romanian one and that ROCA will continue to develop it, continuing to build on the solid foundation that I and my brother built in these 30 years. I am confident that Sarcom will reach its potential in the coming years, benefiting from the experience that the people in the company already have and from the enthusiasm and vision of ROCA. If I had not been convinced by these directions for the future of the company, the transaction would not have taken place, I would not have succeeded. But I think that this transaction represents a history for Romanian entrepreneurship and I am happy to contribute to this story, ”said Marinică Potop, founder of Sarcom.
The value of the production market for paints and varnishes in Romania amounted to 1.6 billion lei in 2020, with a compound annual growth rate (CAGR) of 10%. The market is growing, and according to estimates, in 2024 it will reach 732 billion lei globally and 2.4 billion lei locally.
“The construction materials industry is a strategic sector for ROCA Investments, and the fact that we have other companies in our portfolio in this field helps us to understand it better. Moreover, we set out to group these companies under the umbrella of a holding company that would generate synergies and a holistic vision. The ROCA team can bring the professional background that together with the management team from Sarcom Vâlcea to ensure the consolidation in the market of the company and its brands, ”added Alexandru Savin, Investment Manager of ROCA Investments.
Sarcom was founded in 1993 by two brothers. who wanted Sarcom Vâlcea to remain a Romanian company, to preserve the culture and to carry on its vision.
ROCA Investment has 10 shareholders, including the Pavăl brothers, the owners of Dedeman, and Dan Şucu, the owner of Mobexpert, but also Theodora Popa, the vice-president of the Transavia group, and Andrei Cionca, pthe president of CITR Group.
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