EOS Hellenic Renaissance Fund (EHRF) invests in Eurolamp
EHRF, managed by EOS Capital Partners (EOS), announces its nineth investment of €15m in Eurolamp, one of the leading B2B companies in Greece in the lighting technology, electrical equipment and Christmas decoration sectors, servicing also many Balkan and EU countries.
Eurolamp S.A was established in 2000 in Thessaloniki by a team with long experience in the field of lighting and electrical applications. Successful strategy execution, proper commercial policy, high-tech skills and strict quality standards are a few of the key elements that render Eurolamp as one of the leading B2B companies in Greece in the lighting technology, electrical equipment and Christmas decoration sectors, servicing also many Balkan and EU countries.
Company’s sales have more than doubled in the last five years reaching c. €39m in 2022 and its EBITDA tripled for the same period standing at €6.7m. Eurolamp’s top line growth was mainly driven by the expansion of the product range not only within the existing categories but also in new product categories (e.g. electric vehicles), the strengthening of sales to key clients (supermarkets and big retail chains) and growth of exports, mainly in Europe.
In the last decade, Eurolamp has invested in its own branded products, that currently account for c. 87% of total sales in 2022. Eurolamp’s extensive range of products in various categories, the good quality at very competitive prices, the technology of its products and the consistent marketing spend have contributed much to be one of the most recognizable brands in Greece among multinational and globally recognized brands (i.e., Siemens, Legrand, Geyer, Phillips, OSRAM etc.), especially in the Electrical Equipment and Light Bulbs markets. The management team targets at strengthening Eurolamp’s brand in key strategic markets in Europe to position itself as a truly reliable alternative vs “A” brands in terms of quality and range of products. This strategy is expected to substantially increase brand awareness abroad and could draw the attention of key strategic multinational players in these markets as a potential buyout target.
Eurolamp has sustained a recurring revenue based on high client retention rates and organically growing business wide network of clients with little concentration risk including big retailers and supermarkets (i.e., top 10 clients sum up less than 27% of total sales). Over the last 3 years, the company has recorded substantial growth rates gaining higher market shares in the sectors that is active in and strengthening its exports. The company is working on continuous diversification of its product portfolio having today more than 12k product codes in 8 different sectors. It offers both branded (“Eurolamp”) and private label products. Eurolamp is a recognizable brand mainly in Greece along with long-established brands of multinational companies like Legrand, Phillips, OSRAM, Sneider, Ledvance, Nexans etc. The main product categories include light bulbs, Christmas lights and decoration, heaters and fans.
Eurolamp’s management team has developed solid and long-lasting relationships with a network of reliable manufacturers and suppliers from China, that offer a great variety of quality products at very competitive prices. Extensive network of clients (c. 2.700) comprises of a) electrical equipment stores, b) electrical devices and electronic equipment stores, c) supermarkets, d) DIY stores, e) seasonal stores and f) wholesalers. Eurolamp also enjoys an increasing presence in more than 10 countries in Europe.
The Company will use the funds for the business plan implementation that includes among others a new warehouse/logistic facility, new production facilities for Christmas lights structures/installations, brand awareness initiatives, new product categories launching and tapping into new markets in Europe with great growth potential.
EOS is the external Alternative Investment Fund Manager of EHRF, a private equity fund with approx. € 150m in AUM, focusing on growth capital investments in Greek SMEs across all sectors. The key cornerstone for the creation of EHRF, was its participation in the Equifund Fund of Funds program. EquiFund investment platform is an initiative created by cooperation between the Hellenic Republic and EIF. It is financed by the Greek ESIF Fund of Funds TAESYM under the European Union / European Regional Development Fund / Operational Programme EPANEK, the EIF and private investors, with the objective to facilitate access to finance, mainly to SMEs, by developing the Venture Capital/Private Equity (“VC/PE”) in Greece in cooperation with selected Financial Intermediaries.
EOS investment strategy focuses on SMEs with a healthy financial position and a solid value proposition looking for capital to achieve their growth potential either organically or inorganically through mergers and acquisitions.