Eco Baltia of INVL Baltic Sea Growth Fund finalizes


Eco Baltia, the largest Baltic environmental and waste management group, backed by private investor INVL Baltic Sea Growth Fund and the European Bank for Reconstruction and Development (EBRD), bought 85% of the shares of Ecoservice, a leading environmental management company in Lithuania, thereby strengthening its position in the Baltic States and in Eastern Europe.

The stake was acquired from BaltCap Private Equity Fund II. Financing for the transaction in excess of € 20 million was provided by Luminor, the third largest financial services provider in the Baltic States.

This agreement further strengthens Eco Baltia’s leadership position in the wider region, with combined annual revenues from Eco Baltia and Ecoservice expected to reach EUR 124 million with EBITDA of EUR 24 million for 2021.

Māris Simanovičs, Chairman of the Board of Eco Baltia, said:
“This agreement represents one of the most important achievements in the history of Eco Baltia. Having partnered with such an important player in the market as Ecoservice, we can now plan an even faster growth path for our business, as we aim to provide the best possible services to our customers in Latvia and Lithuania respectively. Working with Ecoservice will also significantly improve our waste collection and sorting capabilities, which will ultimately result in more recyclable raw materials being sent for processing. This agreement is therefore an important step not only for us, but also for our circular economy and our industry on a truly national level. ”

Vytautas Plunksnis, partner of the INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board of Eco Baltia, said: “The merger of these companies creates a real dynamic in the development of the environmental management and recycling sector for the Baltic region. It will facilitate the creation of powerful regional champions, attractive to both strategic partners and financial investors. Eco Baltia’s long-term goal is to expand its recycling capacity, and this agreement is a way to achieve that goal in a shorter time frame. We are eager to update the market with new developments and business flows in environmental management and recycling spaces in due time. “

Andrius Načajus, Head of Corporate Banking at Luminor, added:
“Luminor has worked with Eco Baltia for 10 years and we are extremely proud to have provided the financing for this transaction. Eco Baltia is a forward-thinking company backed by strong and professional shareholders who align with our own ESG priorities, and this agreement allows it to maximize its positive impact on the environment through the development of the circular economy. We look forward to maintaining our strong relationships and supporting the development of the business over the coming years as they grow. “

Saulius Budrevičius, Executive Director and Co-Owner of Ecoservice, said:
“This is an important time for us as a company and for the long-term development of our industry as a whole. Working towards a circular economy is one of the key objectives of the EU’s Green Deal and after joining forces with a very experienced environmental service provider in a neighboring country, we will now be able to make further progress towards these major objectives. , including expanding waste management and recycle even further. In partnership with Eco Baltia, we will continue to expand our range of services offered, and with the shared operational expertise of both companies, we will now be able to offer a more comprehensive range of services to our Lithuanian customers.

The Ecoservice group consists of several companies operating in sectors such as household waste management, recycling and collection of construction waste as well as other environmental services. The company employs around 900 people in Lithuania and achieved a turnover of 35 million euros last year.

In 2020, Eco Baltia’s turnover increased by 6% to € 75 million. The group offers a full range of waste management services, from collection and sorting to logistics, wholesale and recycling of secondary raw materials, employing around 900 people in Latvia. The main Eco Baltia companies in the existing portfolio include PET Baltija (the largest recycler of PET bottles in the Baltics), Eco Baltia empty (waste manager), Latvijas Zalais punkts (producer responsibility organization – Green Dot) and Nordic Plast (PE / PP recycler).

Following the acquisition of Ecoservice, Eco Baltia intends to increase the volume of recyclable materials it manages and to extend the treatment of construction waste, already implemented by Ecoservice in Lithuania. As this offer develops in Latvia, Eco Baltia will be able to provide a full range of these services, from the collection and transport of construction waste to its treatment. There are also plans to expand portable toilet rental operations in Latvia and associated waste collection services.

The shareholders of Eco Baltia are INVL Baltic Sea Growth Fund (52.81%), the European Bank for Reconstruction and Development (30.51%) and the management of the company (16.68%).

INVL Baltic Sea Growth Fund
INVL Baltic Sea Growth Fund, with a total size of EUR 165 million, is the leading private equity fund in the Baltic States, with the European Investment Fund (“EIF”) being its main investor.

The EIF has committed 30 million euros with support from the European Fund for Strategic Investments, a key part of the Investment Plan for Europe (or the “Junker Plan”), as well as the allocation of resources from the Baltic Innovation Fund, the “fund of funds” developed in cooperation with the Lithuanian, Latvian and Estonian governments. The aim is to increase capital investment in small and medium-sized enterprises with high growth potential in the Baltic States.

The Fund seeks to build a diversified portfolio of companies, targeting transactions with large majority or minority holdings and writing tickets of 10 to 30 million euros, which exhibit high growth potential and the ability to compete on a truly global.

The Fund focuses on the Baltic States and the neighboring regions of Poland, Scandinavia and Central Europe in particular. The Fund has so far invested in four companies in the healthcare and civil engineering sectors.

The Fund is managed by one of the leading Lithuanian asset management companies, INVL Asset Management, which is part of the Invalda INVL group.

INVL asset management
INVL Asset Management is part of Invalda INVL, one of the leading asset management groups in the Baltic region. Group companies manage pension funds and mutual funds, alternative investments, individual portfolios, private equity assets and other financial instruments.

More than 240,000 clients in Lithuania and Latvia and international investors at the end of 2020 entrusted the group with more than € 1.2 billion in assets under management. Active since 1991 and with a solid background, Invalda INVL has 30 years of experience in managing private equity assets in the Baltic States and the Central and Eastern European landscape while developing businesses for make top-notch market leaders.

Contact person for more information:
Vytautas Plunksnis, partner of the Baltic Sea Growth Fund INVL
Email: [email protected]

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