INVESTMENT
PERFORMANCE 
Matras Sp. z.o.o

Business Description:
Matras is Poland's largest wholesaler and second largest retailer of books. The company operates distribution centers in seven Polish cities and a chain of more than 70 owned and franchised retail outlets. The company's centralized inventory management and financial systems allow local book stores to benefit from its centralized purchasing and other cost savings realized through improved logistics/increased inventory turns.

Management:
During Poland's martial law period, Matras founder and Chairman Jan Sieracki and other founding shareholders distributed underground newspapers and officially banned books as part of their activities for the Solidarity movement. Sieracki and other Matras founders used private apartments as distribution centers. After Poland's democratic elections in 1989, Sieracki and his colleagues began using their network for commercial purposes, in a loose and poorly organized confederation, but one well known among publishers for integrity. After a fire destroyed one of their warehouses and banks refused to lend to the company due to the poor state of its financials, Matras approached SEAF's Poland fund for capital. With SEAF's help, the company has grown rapidly into what is today Poland's leading book wholesaler and second leading book retailer.

Investment Thesis:
When SEAF invested in Matras, it realized that its management structure needed to be consolidated and that a management information system was required to apprise management of the company's costs and profitability. After its investment SEAF assigned a number of CARESBAC investment officers to assist Matras management in analyzing its financial and organizational conditions. Working patiently with the original 6 founders, SEAF was able to convince three of the original founders to leave the management of the business and serve on the supervisory board, while integrating the various regional book wholesale and retail operations. SEAF is currently heavily involved in improving the retail design for the company's more than 70 shops, and in instituting a more experienced CFO.

Performance Summary:
The company has more than tripled its sales and achieved a consolidated profit in a very competitive environment Matras' revenue for fiscal year 2004 was approximately $42 million. SEAF has organized Matras' participation in numerous training courses and visits to major book distributors in the U.S. and France, as well as securing support from West Europe experts in the category. The company will continue to expand aggressively, leveraging its substantial asset base, with SEAF contemplating a significant follow-on investment. Matras continues the path of the extensive growth, opening a new bookstore on average, every month.
 

 

INVESTMENT PERFORMANCE 

Matras Sp. z.o.o

 

Business Description:
Matras is Poland's largest wholesaler and second largest retailer of books. The company operates distribution centers in seven Polish cities and a chain of more than 70 owned and franchised retail outlets. The company's centralized inventory management and financial systems allow local book stores to benefit from its centralized purchasing and other cost savings realized through improved logistics/increased inventory turns.

Management:
During Poland's martial law period, Matras founder and Chairman Jan Sieracki and other founding shareholders distributed underground newspapers and officially banned books as part of their activities for the Solidarity movement. Sieracki and other Matras founders used private apartments as distribution centers. After Poland's democratic elections in 1989, Sieracki and his colleagues began using their network for commercial purposes, in a loose and poorly organized confederation, but one well known among publishers for integrity. After a fire destroyed one of their warehouses and banks refused to lend to the company due to the poor state of its financials, Matras approached SEAF's Poland fund for capital. With SEAF's help, the company has grown rapidly into what is today Poland's leading book wholesaler and second leading book retailer.

Investment Thesis:
When SEAF invested in Matras, it realized that its management structure needed to be consolidated and that a management information system was required to apprise management of the company's costs and profitability. After its investment SEAF assigned a number of CARESBAC investment officers to assist Matras management in analyzing its financial and organizational conditions. Working patiently with the original 6 founders, SEAF was able to convince three of the original founders to leave the management of the business and serve on the supervisory board, while integrating the various regional book wholesale and retail operations. SEAF is currently heavily involved in improving the retail design for the company's more than 70 shops, and in instituting a more experienced CFO.

Performance Summary:
The company has more than tripled its sales and achieved a consolidated profit in a very competitive environment Matras' revenue for fiscal year 2004 was approximately $42 million. SEAF has organized Matras' participation in numerous training courses and visits to major book distributors in the U.S. and France, as well as securing support from West Europe experts in the category. The company will continue to expand aggressively, leveraging its substantial asset base, with SEAF contemplating a significant follow-on investment. Matras continues the path of the extensive growth, opening a new bookstore on average, every month.