On 30 April, Sescom became the major shareholder in DT Sp. z o.o., are forklifts the new “gold”? What was the reason behind the management’s decision? Was it only about diversifying the portfolio?
According to Widlak List 2018 report, forklifts show high growth dynamics, the number of new devices increased by 12% compared to the previous year. The forklift market has maintained an upward trend for more than 3 years. In Poland, we can observe a rapid development of the entire logistics sector, which is directly related to our parent sector of retail chains. All equipment and machines for warehouse transport, such as forklifts, lifts, platforms and similar devices, have become an integral part of warehouses, storage yards, reloading bases and stores. The investment in DT Sp. z o.o. is, therefore, a natural extension of the services offered by Sescom S.A. in the sector of retail chains and an opportunity to develop services in the logistics sector.
Is this direction of development related to the e-commerce growth trend? Does the company plan a smooth transition from servicing retail chains to handling e-commerce?
In the past few years, the purchasing preferences of Polish consumers have definitely changed. The Gemius research company reports that e-commerce is growing every year by around 20%. The value of the on-line sector turnover in trade increased by nearly 5%. It is estimated that on an annual basis, e-commerce is growing 7 times faster than traditional trade. The development of e-commerce is based on efficient management of goods flow and on logistics. Maintenance and technical supervision over devices and equipment are what we specialize in. We believe that thanks to our service, customers will be able to efficiently handle their logistics and the flow of goods, and thus their products will reach customers faster. This will allow them to strongly develop e-commerce areas. Our investment in DT Sp. z o.o. it is a step towards the future. In such a competitive industry, the one who does not move forward simply makes a step back.
What is the story behind choosing DT Sp. z o.o? Was the management considering other companies? Were investments in this segment also considered from a different angle, e.g. cooperation with a distribution company?
We’ve been cooperating with the owners of DT Sp. z o.o. for several years and we have noticed great potential in them. Good service quality, flexibility, ability to optimize, focus on expansion, and above all, they already gained solid experience in the industry and the courage to run their own company, were decisive in the selection of DT. These are features that remind me of Sescom in the first years of its operation. Before making a decision, we conducted a market review. Thanks to attractive prices, quality, quick responsiveness and efficiency in the execution of orders, the company can compete equally with the largest service companies in Poland. We got to know the potential of the industry, but a very important argument for choosing DT was also the human factor.
Where can you see the greatest opportunities in the context of this cooperation?
We expect new experiences that will have a positive impact on our entire business. New people, activities, markets, problems and opportunities are very inspiring. We are happy to share our knowledge and experience, but at the same time, we are open to learning. Small companies such as DT are very pragmatic at the beginning, but at the same time flexible – they can quickly adapt to the changing environment. This is a huge advantage that we value at Sescom. In addition, a small company has huge opportunities for development, especially when it knows how to use the financial or market potential of a larger partner. Since the beginning of talks with DT, we have noticed similarities in the operational areas and in approaches to clients in the context of the flexibility of operations. The combined knowledge, resources and capabilities will certainly create new perspectives in the areas in which we operate in Poland. Most of all, however, I’m counting on the synergy of market activities and on expanding the activities of the entire capital group to new markets.
How does this acquisition fit into the overall company strategy?
We have started work on a new strategy after 2020. We see an opportunity in optimizing by consolidating the services provided to our clients. To effectively offer optimization services, it is necessary to have expert competence. Tasks done by the clients on their own today may be transferred to us tomorrow, bringing significant savings to them. The core of our business is the management of ancillary services. In turn, the customers’ needs are the basis of our actions – an integrated team of specialists works together to offer them solutions tailored to their requirements. We strive to create “tailor-made offers”.
Thanks to such moves, we gain complexity. We build our own infrastructure, which helps to make many works faster and more effectively, and therefore cheaper. Due to the scaled model of our operations, we can also participate effectively in scaling the business of our clients, also abroad.
Sescom acquires a 51% stake in DT Sp. z o.o., and will be the majority shareholder of the Olsztyn-based company. Does this mean that frequent interference in the management of its operations may happen?
We have no intention of interfering in the management of DT’s activities. The DT Management Board members are great and enthusiastic entrepreneurs who know their market and industry well. We will support, not disturb. We want to guarantee autonomy in the activities of subsidiaries. We promote commitment and participation in management, we focus on the credibility and transparency of our business. We launch management mechanisms, including motivational ones, which primarily support managers in achieving better results. Cooperation within the group and complementary expertise are important for us. We really want DT to be successful.
Is Sescom planning similar investments in the next 5 years?
Yes, definitely. DT is our second acquisition project, significantly different from the first one. Such projects allow us to learn effective actions in the acquisition process. Now the most important thing will be the process of integration and supporting DT development. We will define the focuses of our attention to our new development strategy, which we will present in September 2019.
DT Sp. z o.o. has been operating in the market of service, hire and sale of forklifts since 2010. The company based in Olsztyn was formed as a result of the conversion of Dozór Techniczny Spółka Jawna R. Rzeźniak& K. Pietrulewicz in April 2019. Initially, DT offered only maintenance services in the Warmian-Masurian Voivodship, and after less than two years it was able to extend its coverage to the region of north-eastern Poland. The factor that boosted the development of the company was the start of cooperation with Sescom S.A. in 2015. Through Sescom, DT was given the opportunity to carry out service work for hypermarket chains. After 4 years, the successful cooperation allowed DT Sp. z o.o. to join Sescom Group.
The strengths of the company are listed by Radosław Rzeźniak, CEO and co-owner of DT Sp. z o.o .:
– We are a small company, but our team is a group of interesting and creative people. Thanks to commitment, knowledge and industry experience, we are able to make use of our potential. I am very positive about cooperation with Sescom S.A. There is a lot of hard work ahead of us and lots of possibilities.
The signing of the stake acquisition agreement on April 30, 2019, ends the intensive investment process, which began in April 2018. From May 1, DT Sp. z o.o., together with Sescom S.A. specialists, will start actions aimed at integrating the company with the existing structures of the Group and allowing to achieve synergy effect on the Polish market of maintenance services for retail chains. According to Radosław Rzeźniak, it is the cooperation of both companies that will help accelerate DT’s development:
– The emergence of Sescom S.A. as a business partner will allow to boost our revenues based on our capabilities and contacts. I hope that thanks to reaching the synergy effect, we will be competitive for current and future clients throughout Poland.