Czech leather processor Karo Leather has signed a preliminary agreement to acquire a stake of 100% of Polish wholesale leather provider Kosmopell Polska for 150 million Czech korunas, with the transaction remaining subject to ongoing legal, financial, tax, technical, and environmental audits.
Karo Leather Acquisition Metrics
- Total Purchase Price: 150 million CZK, split into two installments payable through late 2027 and April 2028.
- Asset backing: 61% of the acquisition cost is covered directly by real estate and physical assets.
- Projected EBITDA Contribution: 95 million CZK expected to be added to the group balance sheet between 2027 and 2030.
Expanding Logistics and Distribution Footprint in Poland
The deal encompasses not just the wholesale operation of Kosmopell Polska, but also a newly built 1.9-hectare storage and logistics facility situated near the Polish town of Olesno. Kosmopell primarily supplies processed leather to furniture manufacturers, alongside secondary clients in the footwear and automotive sectors. Karo Leather’s management views the acquisition as a direct bridge to secure its distribution channels in Poland, a nation that already receives a substantial share of the Czech company’s total export volume.
With the Kosmopell acquisition, we will obtain storage, logistical background, and a distribution center directly on the Polish market,
stated Karo Financial Director Jakub Hemerka.
Financial Trajectory and Structuring the 150 Million Koruna Valuation
Kosmopell Polska projects incoming revenue of 87 million CZK alongside an earnings before interest, taxes, depreciation, and amortization (EBITDA) figure of 17.5 million CZK for the current operational year. Forward guidance supplied by the company scales those metrics upward for 2027, anticipating 98 million CZK in revenue and an EBITDA of 19.6 million CZK.
To fund the 150 million CZK purchase price, Karo Leather has outlined a bifurcated payment schedule. The initial tranche of approximately 80 million CZK is due by the end of 2027. The remaining balance of roughly 70 million CZK will be disbursed by April 2028, with corporate financing designated for this second segment through an acquisition loan.
| Financial Metric | Kosmopell Polska (Current Year Forecast) | Kosmopell Polska (2027 Projection) |
|---|---|---|
| Expected Revenue | 87 million CZK | 98 million CZK |
| EBITDA | 17.5 million CZK | 19.6 million CZK |
Integrating Prime Market Standing with Industrial Assets
Karo Leather operates established production plants situated in Boršov u Jihlavy and Brtnice, serving core industrial clients across the furniture and footwear markets. The company’s shares are publicly traded on the Prague Stock Exchange, having transitioned to the Prime Market tier in March. With 61% of the Polish acquisition’s purchase price secured by real estate and other assets, management aims to absorb regional distribution infrastructure.
Regulatory sign-off and final closing conditions remain contingent on the completion of comprehensive audits currently underway across Kosmopell’s legal, financial, tax, technical, and environmental portfolios.
