INVL taps biggest PE fund in Baltics to buy recycling, waste collection busines Eco Baltia

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INVL has tapped the biggest private equity fund in the Baltic region to buy a controlling stake in plastic recycling and waste collection major Eco Baltia.

The deal for a roughly 52% stake sees the European Bank for Reconstruction and Development retain its 30.5% stake, Maris Simanovičs, chairman of the Eco Baltia management board, keep a 16.68% stake.

INVL closed its Baltic Sea Growth Fund on €165m in February. The firm has said it plans to build an eight to 12-strong portfolio using the fund.

Fund partner Vytautas Plunksnis said, “We plan to invest significant capital into Eco Baltia’s recycling capabilities and establish it as a clear market leader of the circular economy in the Baltic region, through the delivery of high quality and sustainable recycling services.

“The world we live in is now using more resources than the planet can produce and so reusing what we have in a sustainable manner is of critical importance.

“We intend to focus on food grade recycled plastics capacities expansion that will ultimately contribute to a reduction in carbon footprint and promote environmental sustainability.”

Eco Baltia’s group revenues increased by 9% last year to €70.6m, with more than 60% of its revenues coming from the recycling sector alone.

Deimantė Korsakaitė, executive partner at the Baltic Sea Growth Fund, said, “Investing in proven, leading Baltic companies which clearly demonstrate further growth potential is one of the Fund’s core investment themes.

“Eco Baltia sits at the forefront of the circular economy for the Baltic region and therefore meets this criterion.

“This deal represents the third company to join our portfolio and will allow us to capitalise on the growing importance of environmental concerns by focusing on both recycling and lifestyle sustainability enhancement measures.”

Last year INVL tapped its Baltic Sea Growth Fund to buy a majority stake in local industrial company Montuotojas.

The company is focused on metal processing and industrial construction services including the erection and maintenance of industrial structures used by the energy, oil and chemical sectors, among others.

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