Transaction between INVL Baltic Sea Growth Fund and Grigeo terminated
Private equity investment fund INVL Baltic Sea Growth Fund informs that due to the changes in investment strategy of Grigeo, AB group, which is one of the largest paper and wood industry groups in the Baltic States, on 30 September 2019, by the initiative of Grigeo, AB the transaction with INVL Baltic Sea Growth Fund subsidiary BSGF Salvus, UAB for investments in the cardboard and packaging business operated by Grigeo, AB has been terminated.
Investment and Shareholder Agreement, which was signed on 10 June 2019, determined that INVL Baltic Sea Growth Fund subsidiary BSGF Salvus, UAB will invest up to €30 million in several phases into Grigeo Investiciju Valdymas, UAB - owned by the sole shareholder Grigeo, AB - and will acquire up to 49.99% of the shares in the company. Grigeo Investicijų Valdymas, UAB manages the cardboard business companies of the Grigeo, AB group: Grigeo Klaipėda, AB, Grigeo Recycling, UAB, Grigeo Packaging, UAB, Latvia based Grigeo Recycling, SIA and Ukraine based AT Mena Pak.
Darius Sulnis, Managing Partner of INVL Baltic Sea Growth Fund, commented:
“Currently we are working on a number of other transactions, seeking to prudently deploy the capital of the Fund elsewhere with a strong pipeline of deals at our disposal.”
As part of the agreed terms and conditions for the termination of a deal, Grigeo, AB will pay a total sum of €1 million.
INVL Baltic Sea Growth Fund
INVL Baltic Sea Growth Fund, managed by one of the leading asset management companies in Lithuania, INVL Asset Management, aims to invest in mid-sized, attractive risk-and-return companies by providing them with capital for future growth. The Fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe. It targets majority or significant minority stakes in businesses while also actively participating in the management of investments and long-term increase in capital value.
The Fund will seek to assemble a diversified portfolio of Baltic Sea based companies, targeting deals with a ticket size of €10 million to €30 million that possess high growth potential and the ability to compete on a truly global basis (the Fund will also offer co-investment opportunities). The Fund is focusing on growth capital, buyout, and “buy and build” investments. The expected life cycle of the Fund is 10 years from the point of initial closing.
In February 2019, a first close of the INVL Baltic Sea Growth Fund was announced at €106 million. The European Investment Fund (EIF), a part of the European Investment Bank (EIB), has become a major investor for the fund. The EIF has committed to invest up to €30 million with support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the Junker Plan), as well as allocating resources from the Baltic Innovation Fund, the "fund of funds" initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia respectively. Cooperation aims to increase capital investment in small and medium-sized enterprises in the Baltic States with high growth potential.
INVL Asset Management
INVL Asset Management is part of the Invalda INVL, one of the leading asset management groups in the Baltic region. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments. Over 200,000 clients in Lithuania and Latvia and international investors have entrusted the group with more than €900 million of assets under management. Active since 1991 and with a solid track record, Invalda INVL boasts 28 years worth of experience in managing private equity assets in the Baltic countries and CEE landscape while developing companies into best-in-class market leaders.