Investment funds interested in first generation of transportation entrepreneurs

The five biggest Romanian transportation companies, which
together own an over 2,500-lorry fleet, post around 200 million
euros in overall business, and have over 3,000 employees. A market
dominated by family businesses has become attractive for investment
funds, with the first majority stake in a top-ranking
transportation company being sold this month by Mihai Dug`e[escu,
Dumagas founder, a business that started by “carrying yellow Shell
containers”.
According to market sources, Dug`e[escu sold 60% in Dumagas
transportation company to Bancroft, a private equity fund which is
not at its first acquisition in Romania, and which previously held
a stake in Mobifon, currently Vodafone.
The transaction reveals the growing interest for this sector
dominated by family businesses, which often started outside
Bucharest with two or three transportation vehicles. The first
investment fund that noticed the potential of this market was
Balkan Accession Fund (BAF), managed by Horia Manda, which took
over a minority stake in transportation company Edy International
Spedition in 2005.
The over 2,500 lorries of the top five Romanian transportation
companies are worth around 100 million euros, considering an
average price of 40,000 euros for a 2-4 year-old lorry.