INVL Baltic Sea Growth Fund signs agreement for the acquisition of
Galinta Group
INVL Baltic Sea Growth Fund, the leading private
equity fund in the Baltics, today announces the signing of an
agreement for the acquisition of 100% of the shares of Galinta
Group. Galinta Group is one of the largest producers of buckwheat
in Europe as well as one of the leading producers and traders of
flakes, rice, and other groats in the Baltic region.
The transaction is expected to be completed at
the beginning of 2024 subject to permission from the Competition
Council of the Republic of Lithuania.
In 2022, Galinta Group generated ~EUR 38.5
million of revenues. Buckwheat production capacity reached
1,000-1,500 tons per month, packaging - around 8 million units per
month. Galinta Group currently employs more than 100 people in
Lithuania.
Marijus Mazuch, a shareholder of the Galinta
group of companies, commented:
“Galinta Group has been successfully operating
in the market for more than two decades and holds a significant
position for the production of groats and flakes as well as
commercial activities across the Baltics and Europe more broadly. I
strongly believe this transfer to professional investors will now
allow the group to continue growing and further strengthen its
already impressive market."
Deimantė Korsakaitė, Managing Partner of INVL
Baltic Sea Growth Fund, commented:
"We believe that the plant-based food sector has
strong potential for growth and Lithuania demonstrates a
competitive advantage in the field of food processing, especially
in the grain segment. Therefore, it has represented one of the
strategic sectors we have looked at for potential investment since
the fund’s establishment. We are glad to be entrusted with the
further growth and development of this successful family-built
business, which in more than twenty-five years has become the
undisputed market leader with its brands are well-known amongst the
buyer community. The business has the potential for rapid growth by
both increasing volumes in existing markets and expanding into the
new ones as well as the launch of new product segments. We strive
to grow regional leaders and provide consumers with high-quality
and healthy food at affordable prices thus we are actively working
with other acquisitions in this area as economies of scale and
possible synergies are the essential condition for ensuring
business competitiveness internationally, modern and efficient
production, and the development and introduction of new products
into the markets."
D. Korsakaitė concluded:
"Sustainability is gaining more and more
leverage in society today. Therefore, post-acquisition we will not
only target product development but also strengthen
sustainability-related initiatives in the company's day-to-day
activities. We strongly believe that incorporating sustainability
initiatives into the business model encourages management to follow
a path of innovation and adopt sustainable yet effective business
solutions."
Galinta Group will be the 9th portfolio
investment for the INVL Baltic Sea Growth Fund. The launch of the
INVL Private Equity Fund II has now been formally actioned, with
the target of attracting EUR 300 million from investors.
Galinta was advised by integrated business
services group Lewben. The legal advisors of INVL Baltic Sea Growth
Fund were law firm "TGS Baltic" and its financial advisors were
EY.
About INVL Baltic Sea Growth
Fund
With a size of EUR 165 million, the INVL Baltic
Sea Growth Fund the leading equity fund in the Baltics. The
European Investment Fund (“EIF”) is its anchor investor.
The EIF, which is a part of the European
Investment Bank, has committed EUR 30 million with the support of
the European Fund for Strategic Investments (a key element of the
Investment Plan for Europe, or ‘Junker Plan’) whilst also
allocating resources from the Baltic Innovation Fund, a “fund of
funds” initiative developed in cooperation with the governments of
Lithuania, Latvia and Estonia. The initiative aims to increase
capital investment in high-growth potential small and medium-sized
enterprises in the Baltics.
The fund seeks to assemble a diversified
portfolio of companies, targeting majority or significant minority
stakes through investments ranging from of EUR 10 million to EUR 30
million. These companies must demonstrate high growth potential and
an ability to succeed in conditions of increasing global
competition and market volatility.
The fund is focused on the Baltic countries and
neighbouring regions including Poland, the Nordics, and Central
Europe. The fund has invested in eight companies to date, focusing
on sectors including healthcare, medical rehabilitation, civil
engineering, plastic recycling, environmental resource management,
veterinary services, and the manufacturing of cosmetics and hygiene
products.
The fund is managed by INVL, the leading Baltic
investment management and life insurance group. The group’s
companies manage pension and mutual funds, life insurance
directions, individual portfolios, private equity as well as other
alternative investments. More than 300,000 clients in Lithuania,
Latvia and Estonia plus international investors have entrusted the
group with the management of over EUR 2 billion of assets. With a
track record spanning 30 years, the group has strong expertise and
experience in managing private equity assets and building true
market players that are leaders in their respective fields in the
Baltic countries and across Central and Eastern Europe.
Important information
This is a marketing communication of an
information nature, which is not and shall not be construed as an
offer to purchase investment units of a collective investment
undertaking, an investment recommendation, or investment research,
as it is not designed to take into account the investment
objectives, financial situation, or needs any individual
investor.
When investing, the investors assume the risk
associated with the investment. The value of investments can both
rise and fall, and an investor may recover less than he/she/it has
invested. Past investment results do not guarantee the same results
or profitability in the future. Past performance is not a reliable
indicator of future performance. Before making a decision to
invest, potential investors should, on their own or with the help
of investment advisers, assess the suitability of the investment
for them along with the taxes and fees related to the investment,
consider all the risks related to the investment, and carefully
read the rules, prospectus and other documents of the respective
collective investment undertaking.
Units of this collective investment undertaking,
mentioned in this press release may only be distributed to
professional investors (clients) as defined in the Law on Markets
in Financial Instruments of the Republic of Lithuania, as amended
and supplemented from time to time, and may not be distributed and
transferred to any other clients.
Person authorized to provide additional information: Deimantė
Korsakaitė the Executive Partner of the INVL Baltic Sea Growth Fund
E-mail: deimante.korsakaite@invl.com
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