BaltCap Private Equity Fund III operated by BaltCap, the largest private equity fund manager in the Baltic states, has signed an agreement to acquire Krekenavos Agrofirma, one of the largest meat processing companies in Lithuania.
© DELFI / Šarūnas Mažeika

The transaction is subject to competition clearance, expected within 1-2 months.

It will the first investment made by the 136-million-euro BaltCap Private Equity Fund III (BPEF III), established earlier this year.

"The meat processing sector has always been active, however, not very attractive for investment due to overcapacity and a highly fragmented market. Some fundamental changes have taken place in the sector recently and now we see great potential both in export markets and in Lithuania, where Krekenavos Agrofirma is a leading player," Sarunas Alekna, a partner of BPEF III, said.

With the Competition Council's approval still pending, BaltCap representatives refrain from commenting on the size and value of the stake in Krekenavos Agrofirma they plan to acquire.

Krekenavos Agrofirma posted 114.514 million euros in sales last year, down 0.1 percent, and its net profit rose 20.6 percent to 5.372 million euros.

Edvervita, owned by Julija and Eduardas, the children of Viktor Uspaskich, founder and leader of the Labor Party, own 100 percent of Krekenavos Agrofirma.

BaltCap Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic companies following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (EIF), which invested through Baltic Innovation Fund 2 (an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF), the European Bank for Reconstruction & Development (EBRD), the Nordic Environment Finance Corporation (NEFCO), LHV pension funds, SEB pension funds from Estonia, Latvia and Lithuania, eQ Asset Management and also family offices.

The new fund will aim to make 8 to 10 platform investments in the Baltic and Nordic countries with enterprise value of these companies typically being between 10 to 50 million euros.

BNS
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