INVL Baltic Sea Growth Fund (“the Fund”), one of the largest private equity investment funds in the Baltic region is pleased to announce that Eco Baltia, the largest environmental and waste management group in the Baltics, backed by the Fund and the European Bank for the Reconstruction and Development (“EBRD”) has agreed a deal to acquire at least an 85% stake in the leading Lithuanian environmental solutions company, Ecoservice.
[soros]Q1 2021 hedge fund letters, conferences and more
Eco Baltia – Ecoservice Deal
The deal will formally close subject to securing the necessary approvals from the Lithuanian Competition Council. The financial details were not disclosed and the seller is BaltCap Private Equity (via Fund II).
The Ecoservice Group consists of several companies operating in sectors including household waste management, recycling and construction waste collecting as well as other environmental based services. The company employs in the region of 900 employees in Lithuania and last year had revenues of €35mn.
In 2020, the Eco Baltia Group revenues grew ~6.1% to €75mn. Eco Baltia is offering a full range of waste management services from collection and sorting to logistics, wholesale, and recycling of secondary raw materials. The Group employs around 900 people in Latvia with leading companies in the existing portfolio including PET Baltija, Eco Baltia Vide, Latvijas Zalais punkts and Nordic plast.
Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory board at Eco Baltia, commented:
“INVL Baltic Sea Growth Fund invested in Eco Baltia in 2020 and we are aiming to significantly grow the company both organically and through acquisitions, focusing on two segments specifically – PET recycling and waste management. This is a significant development for the Company in terms of capability and will be instrumental in achieving these goals.”
Eco Baltia was advised by Sorainen (legal) and EY (financial & tax due diligence). Selling shareholders of Ecoservice were advised by TGS Baltic (legal), PWC (financial & tax vendor due diligence) and Superia (M&A).
