BaltCap invests in Fitekin and ONEA software platforms

/in /by

BaltCap Private Equity Fund III acquired Fitekin and ONEA, which are pre-accounting software platforms for invoice management and approval workflow, from Unifiedpost Group. BaltCap is backing the business in further developing the platforms’ AI and machine-learning capabilities, and expanding into new regions to help an increasing number of companies on their path to digital transformation.  

 Fitekin and ONEA offer automatisation and digitisation solutions for invoice management that streamline processes and reduce manual labour. Fitekin is a digital purchase invoice management system facilitating the management and workflow of e-invoices, PDFs, and paper invoices. ONEA creates unique, cloud-based pre-accounting solutions that provide real-time insight from financial data. Fitekin and ONEA serve customers in 13 countries across Europe. 

“The automation and digitisation solutions offered by Fitekin and ONEA are crucial in the digital transformation of companies. We see strong growth potential in this segment across Europe. With a solid market position in 13 European countries, skilled team, and experienced management, the business is well-equipped to expand their customer base and enter new markets,” Kristjan Kalda, partner at BaltCap, commented. 

 Mait Sooaru, founder and CEO of Fitek: ”Our strategic goal is to achieve a prominent market position in Europe by consistently enhancing the platforms in alignment with industry trends and market needs. Additionally, we plan to introduce new services, including AI-driven tools, to automate accounting even further. We are happy to embark on this new growth phase with BaltCap, and trust that their long-term experience in internationalising businesses helps us to reach our growth ambitions.” 

 The buy-side advisers in the transaction were Cobalt (legal) and FlowIT (technical).  

 About Fitekin and ONEA 

Fitekin is a digital purchase invoice management system facilitating the management and workflow of e-invoices, PDFs, and paper invoices. Based on Robotic Process Automation (RPA) technology, ONEA creates unique, cloud-based pre-accounting solutions that provide real-time insight from financial data. 

Fitekin and ONEA serve customers across Europe—Estonia, Latvia, Lithuania, the Czech Republic, Poland, Romania, Slovakia, Serbia, Belgium, the Netherlands, and Luxembourg. The platforms are managed and developed in Estonia, Latvia, and Belgium.  

 About BaltCap Private Equity Fund III 

 Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing. 

 

BaltCap-backed Piletilevi Group expands in Poland to become biggest player in Central Europe

/in /by

The BaltCap portfolio company Piletilevi Group has acquired a majority stake in two Polish ticket sales platforms—Kicket.com and Biletomat.pl. With this transaction, the Piletilevi Group has become the second largest ticketing company in Poland, as well as the largest player in Central Europe, brokering tickets for nearly 320 million euros per year.

 According to Sven Nuutmann, the co-owner and CEO of the Piletilevi Group, this is the largest investment in the group’s history. With the transaction the group has now acquired a 77-percent stake, and by 2026 an 83.8-percent stake in the companies purchased.

“Our goal is to become the market leader in Poland in the very near future, and offer all our customers the highest class of ticketing services. We aim to effectively merge the newly acquired companies operating Kicket.com and Biletomat.pl by keeping the best functionalities of the new partners and the Piletilevi Group platform,” Nuutmann said.

“Both new platforms are technically very advanced and help to speed up the completion of the new platform of the Piletilevi Group, in which the company has invested nearly six million euros. Piletilevi’s new platform is to be completed in the first half of 2025,” Nuutmann added.

Establishing a ticketing company with strong market power in Poland will increase the financial security of the local organisers, enhance the competition between service providers, and allow a more diverse selection of cultural events to be offered to a larger client base. “A ticketing system that has uniform standards and is connected across countries will significantly improve international cultural exchange,” Nuutmann explained.

The Piletilevi Group started expanding vigorously in Central Europe in summer 2023, when it first acquired a majority stake in one of the largest ticketing companies in Romania, Bilete.ro, and shortly thereafter in the Czech market leader GoOut.net.

The Piletilevi Group is an international ticket sales and event organisation company that operates in Estonia, Latvia, Lithuania, Romania, the Czech Republic, Slovakia, and Poland. The company operates in a market with a population of 79 million people, brokering 17 million tickets with a total value of 320 million euros annually. The Piletilevi Group employs nearly 250 people.

 

BaltCap and Draugiem Capital become majority shareholders of IGLU brand developer Pepi Rer

/in /by

BaltCap, the largest private equity fund manager in the Baltics, and investment company Draugiem Capital invest in Latvia-based multi-sector production company SIA Pepi Rer to boost the global expansion of the business. Pepi Rer is widely known for its soft play brand IGLU, floor insulation brand ProVent, as well as the production of construction and packaging materials. After the transaction, BaltCap and Draugiem Capital will become the majority shareholders of the company.

Founded in 1998 and based in Valka, Latvia, Pepi Rer is a manufacturing and e-commerce company producing a wide range of polyethylene foam and air bubble film products. The D2C exporter of the IGLU Soft Play brand of kids’ toys and packaging and construction materials exports 90% of its sales to more than 40 countries around the world. After the introduction of the IGLU brand in 2015 the company has more than doubled its revenue reaching a turnover of €13,5 million and profit of €1,7 million in 2022. The company employs 200 people.

The co-founder and co-owner of Pepi Rer, Viesturs Lucāns comments: “The greatest asset of our company is the people who work here, many of whom have been with us since day one. We also chose our investment partners carefully, after all—they are people, too. We received many offers, but the teams at BaltCap and Draugiem Group created confidence in us. I trust their knowledge and experience in backing local companies on their growth journey, and helping Pepi Rer to reach new heights both in introducing innovative technologies and entering new markets”.

Draugiem Capital investment director Dāvis Siksnāns shared the growth plans: “We see great potential to develop the IGLU brand by expanding sales both on platforms such as Amazon and the company’s website, using our 19 years of knowledge from companies such as Printful, Fast Brands and others”.

“Pepi Rer’s success has been achieved with the dedication and persistent work of the company’s founders, management team and employees. We deeply appreciate their contribution and see a great opportunity to continue this growth story. Our ambition is to make the company a leading player in its niche in the USA and other export markets, using BaltCap’s 25 years of experience in taking more than 100 local companies to the international level,” says BaltCap investment director Sandra Aile.

After the completion of the transaction, a new supervisory board will be formed with BaltCap investment directors Sandra Aile and Pēteris Treimanis, as well as Draugiem Capital investment director Dāvis Siksnāns serving as board members.

The acquisition of Pepi Rer is the second joint investment of BaltCap and Draugiem Group. In 2012 BaltCap invested €0.5 million in Draugiem Group company Vendon. After joint development, the company was acquired in 2022 by Spain’s most prominent international technology company Azkoyen. Without up to €4.0 million earnout part, the Vendon deal size reached €9.3 million.

About BaltCap Private Equity Fund III
Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

BaltCap completes the first take-private transaction by a Baltic investor on the London Stock Exchange by acquiring Xpediator

/in /by

BaltCap, the largest private equity fund manager in the Baltics, with co-investors, acquired Xpediator, a fast-growing international freight management company, after a successful bid made in April. Xpediator provides freight-forwarding, logistics, and transport support solutions in the CEE and the UK under the Delamode brand. The consortium aims to further boost the company’s core freight-forwarding offers in Europe and internationally, as well as develop UK-based businesses.

Šarūnas Alekna, a Partner at BaltCap, is content that the offer has been successfully concluded. “We are thankful to Xpediator’s shareholders and board for entrusting our vision for the company. I’m certain the new ownership structure will enable the company to capitalise on its strengths and continue its growth path,” Alekna explained.

Taking Xpediator private will enable the company to pursue additional growth opportunities with vast potential to become a leader in global supply chain solutions for our region. BaltCap will support growing Delamode’s core freight-forwarding activities in the CEE region and developing logistics operations in the UK and Romania,” Alekna explained. “We are confident that our local presence and 25 years of experience in building regional business champions will contribute to realising management’s vision for the company,” he added.

Justas Versnickas, CEO of Delamode, commented, “I’m excited to enter this new phase of development for Delamode. The new private ownership structure will allow the company to accelerate its growth strategy, and will be instrumental in building Delamode into the leading freight forwarding and logistics player in the Baltics, the CEE, and the UK. Our team is actively working on bringing new products, such as intermodal freight and green logistics solution, to our customers, and remains focused on being the best-in-class service provider in all of our markets.”

The acquisition was completed by a consortium led by BaltCap, including Xpediator’s largest shareholder, Cogels Investments Limited, the investment vehicle of Stephen Blyth’s family (the former CEO of Xpediator), and Justas Versnickas.

This transaction is remarkable for the Baltics, as it is the first take-private transaction by a Baltic investor on the London Stock Exchange.

Piletilevi Group to acquire a majority stake in GoOut.net, the largest ticket sales platform in the Czech Republic

/in /by

The leading Baltic ticket sales company Piletilevi recently announced the acquisition of one of the largest Romanian ticketing platforms Bilete.ro. Now Piletilevi continues its expansion and announces the acquisition of a majority holding in GoOut.net, the Czech market leader.

According to Piletilevi Group CEO Sven Nuutmann, the acquisition of GoOut.net is an important step in the company’s strategy to expand to new markets, strengthen its position in the Baltics and take steps to achieve a leading position as a ticket sales platform in Central Europe as well. “GoOut.net has an excellent young and professional team with whom we can start implementing a common growth strategy. In addition, we can successfully combine the competencies and development activities of our companies’ IT development teams,” Nuutmann said.

Both acquisitions by Piletilevi Group were funded with the assistance of SEB Bank. “The expansion of Estonian companies into international markets revitalizes our economy, and as a financial partner, we fully support the ambitions of such companies,” described Allan Parik, CEO of SEB.

Piletilevi Group acquires an 80% stake in GoOut.net, the Czech Republic’s most visited ticketing platform. With this transaction, Piletilevi gains a foothold also in Poland, Slovakia and Germany. The recent transactions in Romania and the Czech Republic increase Piletilevi’s volume of annually issued tickets to 15 million and the mediated ticket turnover to 210 million euros still this year. In the next three years, the company plans to increase ticket sales to 300 million euros.

According to Nuutmann, with nearly 11 million residents, the Czech Republic has a diverse cultural landscape, and the partnership with GoOut.net gives Piletilevi Group the opportunity to offer great events and experiences to a wide audience. “I am sincerely glad that Lukáš Jandač, continuing as the CEO of GoOut.net, did not seize the opportunity to sell his entire stake and will remain a significant shareholder. The GoOut.net team will continue their daily independent operations, and nothing will change for their existing clients and partners,” Nuutmann said.

According to Lukáš Jandač, who will continue as a shareholder and managing director of GoOut.net, joining the Piletilevi Group is a very exciting opportunity for them. “Piletilevi Group is a well-known ticket mediation company with more than 26 years of experience, they already have existing relationships with international agents and artists. We highly appreciate the investment capacity of Piletilevi Group, including the nearly six million euros invested in the new ticket sales platform. Now we can also contribute to it,” Jandač said.

The parties are not disclosing the price of the transaction. Nuutmann added that Piletilevi Group is not ruling out new transactions in markets where it has already established a foothold, and the company is also looking for opportunities to further expand geographically.

BaltCap-backed Piletilevi Group expands to Romania

/in /by

BaltCap portfolio company Piletilevi Group, the largest ticket sales platform in the Baltic states, is acquiring a majority stake in Bilete.ro, the leading ticketing company in Romania. Piletilevi Group is acquiring an 80.2% stake, with 19.8% retained by the current shareholders of Bilete.ro, Andreea Pop, Ion Stanciulea and Razvan-Teodor Opran. Pop will continue as the CEO of the company.

Bilete.ro has been operating in the Romanian market for 17 years, selling over 1.5 million tickets per year. With 40 employees, the company sells tickets in the online environment bilete.ro, which has 1 million visits a month at 1,600 partner sales points across the country, with more than 300 customers in all fields of events. The main areas served are sports, electronic music festivals, children’s entertainment, and theatre. Bilete.ro is also an official partner of the Romanian Football Federation.

According to Sven Nuutmann, the co-owner and CEO of Piletilevi Group, expanding the business outside the Baltic countries has been planned for some time, but the global COVID-19 crisis and the war in Ukraine put the expansion on hold. Entering Romania, with a population of 20 million, now marks the beginning of Piletilevi Group’s geographical expansion.

“We see excellent cooperation opportunities with the founders and management of Bilete.ro for growing the business. We can create synergies and offer a better service to both Romanian and Baltic event organizers as well as ticket buyers,” Nuutmann said.

“We are thrilled to bring the latest software solutions of the ticketing world to the Romanian market. We plan to contribute to the development of organizers’ self-service environment and analytical reports and offer event organizers the best marketing opportunities based on our long-term experience,” Nuutmann said, adding that Piletilevi Group continues to seek further expansion opportunities both in Romania and the neighbouring countries.

Andreea Pop, the CEO of Bilete.ro said the 26-year experience of Piletilevi Group, which sells nearly 7.5 million tickets to more than 30,000 events a year, is invaluable. “Piletilevi is well-known among the largest organizers in Europe and the world. Its entry to the Romanian market will definitely improve the chances of local organizers in bringing an increasing number of concerts of well-known foreign artists to Romania,” Pop commented. 

Pop emphasized the relevant experience of Piletilevi Group when mediating the world’s top artists such as Metallica, Rammstein, Ed Sheeran, Måneskin, Imagine Dragons, The Weeknd, Depeche Mode and many others. In addition, Piletilevi has been a partner to outstanding sports events such as the basketball EuroLeague Final Four tournament in Kaunas, the Rally Estonia WRC stage and the Biathlon World Cup stage held in Otepää, Estonia, last year.

The transaction will be completed following the approval of relevant authorities; the transaction value has not been disclosed.

BaltCap-backed Adoro acquires Latvian elderly care operator and expands its reach in Latvia’s care sector

/in /by

BaltCap, the largest private equity fund manager in the Baltics, through its portfolio company Adoro, signed an agreement to acquire a 100% stake in Senior Baltic SIA, which operates the Latvian elderly care facility Dzintara Melodija. The add-on investment is part of Adoro’s strategy to build a leading social and healthcare chain that provides high-quality care services in Latvia.

BaltCap entered the Latvian social and healthcare sector in November 2022 by acquiring the social care centre Dzīves Ābece in Riga. BaltCap’s subsidiary Adoro plans to establish several new social care facilities in Latvia over the next five years with a total of 500+ beds. Given the significant lack of high-quality senior care services in Latvia, the general trend of an aging population, as well as the current situation of high occupancy rates in state and municipal social care facilities, BaltCap as an investor sees potential in this area.

Dzintara Melodija is a modern elderly home with 202 beds that opened in Riga, the capital of Latvia, in 2013. The 5830 m2 4-floor facility is a purpose-built institution for elderly care. It incorporates all relevant features, including special-purpose rooms for care and leisure, elevators, wide corridors, and single and double rooms for the residents. Dzintara Melodija employs more than 70 medical, nursing, and care specialists.

Juris Parups, Investment Director at BaltCap, stated, “Our ambition is to build Adoro into a leading elderly care chain in Latvia and introduce new high-quality services in this field to ensure the health, well-being, and comfort of seniors. Acquiring Dzintara Melodija, which adheres to the highest care standards in the industry, and joining forces with its experienced management team is a crucial step in this direction.”

Uldis Priedītis, CEO of Adoro, had this to say about the expansion plans: “With the acquisition of Dzintara Melodija, we will be able to provide high-quality care for up to 300 people in the Adoro network. Adoro is Latin for respect, admiration, love, and honour – these are the core values that shape our attitude towards both the residents and our employees. We plan to offer not only residential and home care but also rehabilitation, physiotherapy, and other short-term healthcare services.”

The deal’s completion is subject to the approval of the Latvian competition authorities.

In recognition of its investments in the sector, BaltCap received the 2022 Sustainability Award of the Year from the Latvian Business Angel Network (LatBAN) and the Latvian Private Equity and Venture Capital Association (LVCA for its investment in the social care company Dzīves Ābece.

BaltCap has notable experience in the care sector. BaltCap Growth Fund has active investments in Estonia’s leading elderly care chain Pihlakodu and in Lithuanian-based private nursery hospital and rehabilitation centre, Gemma.

BaltCap to acquire a majority stake in Hansab, the leading Baltic automation services provider

/in /by

BaltCap, the largest private equity manager in the Baltics, through its Private Equity Fund III, has agreed to acquire a 70% share in the leading Baltic automation services provider Hansab Group. Hansab has a strong presence in the Baltics, backed by BaltCap’s investment and expertise, the company plans to expand outside the region and diversify its service portfolio.

Founded in 1991, Hansab develops and provides security, cash handling, point of sales, parcel handling, queuing, parking and other automation solutions and services to its B2B customers in logistics, finance, public, retail and other sectors. The company operates in Estonia, Latvia, Lithuania and Finland, with 18 offices and service points across the region.

“Hansab is an established business that has developed a high quality and efficient service model in the fast-growing area of automation,” commented BaltCap partner Kristjan Kalda. “We see many avenues to grow the business further, using BaltCap’s long-term experience in taking Baltic companies to international arena.”

Aigar Urva, founder and CEO of Hansab Group, added: ”During the past 32 years, we have successfully grown the company organically. Now we intend to accelerate the development and enter new fields of activity and territories. We are happy to join forces with BaltCap, a financially strong and effective partner, helping us fulfill our growth strategy.”

The transaction will be completed in the coming months subject to the approval of the competition authorities in the Baltic countries and obtaining other required permissions related to the business.

After the completion, Aigar Urva will move to the supervisory board, and Janno Kallikorm, CEO of AS Hansab Estonia, will become the new CEO of Hansab Group.

The transaction has been advised by Cobalt Legal and Sorainen. The transaction value and other details were not disclosed.

About BaltCap Private Equity Fund III

Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

BaltCap invested in the Estonian Digital Book Centre to back its growth in the Baltics

/in /by

The main goal of the investment is to enter the Baltic market as well as further develop the company’s technology platform and services, providing customers with modern solutions for e-books and audiobooks.

The Estonian Digital Book Centre (EDRK) has pioneered the market for e-books and audiobooks since 2009 when it started selling e-books in cooperation with resellers Rahva Raamat and Apollo. New solutions for publishers and readers are constantly being developed to make reading as accessible and comfortable as possible.

In cooperation with telecoms provider Elisa, EDRK launched a subscription-based reading model and a self-reader for listening to e-books, and together with Tallinn Central Library, the first e-book lending platform in Estonia, was developed. The Estonian Digital Book Centre’s IT platform is also used in Lithuania.

Oliver Kullman, Partner at BaltCap, comments on the investment: “EDRK has a relevant role in the Estonian market as the forerunner of book digitalization. We see growth opportunities across the entire value chain, which we believe will benefit all market participants. I trust BaltCap’s long-standing experience in developing businesses in the Baltics and its extensive international network provide new windows for growth to EDRK.”

Ain Lausmaa, the CEO of EDRK, further comments on the way forward: “In cooperation with BaltCap, we plan to expand our activities in the Baltics and bring new features to the Estonian market. There will be no changes in the management of the Estonian Digital Book Centre; we will continue being a reliable partner for publishers, resellers and libraries.”

BaltCap entered through its Private Equity Fund III, which acquired 43% of the company.

BaltCap makes a recommended cash offer to acquire AIM listed Xpediator Plc

/in /by

BaltCap, the largest private equity fund manager in the Baltics, with co-investors made an offer to acquire Xpediator, a fast-growing international freight management company currently listed on the AIM Market of the London Stock Exchange. Xpediator provides logistics, transportation services and transport support solutions in the CEE and the UK. The consortium aims to further boost the company’s core freight forwarding offering in Europe and internationally and develop the UK based businesses.

Established in 1988, the company has evolved into an integrated freight management business, with well-established and successful customs clearance, multi-modal transport, storage, fulfilment and distribution operations in its key markets in the UK and Europe, with specific expertise in CEE countries. Xpediator operates through three segments: Freight Forwarding, Logistics & Warehousing, and Transport Support Services. The company offers freight forwarding and transport solutions by road, ocean, and air, as well as stock management, short- and long-term warehousing, and on-site packing services. Xpediator group employs over 1,500 people across the UK, Bulgaria, Lithuania, Estonia, Macedonia, Montenegro, Moldova, Romania and Serbia, operating from over 35 sites in these and other countries.

Šarūnas Alekna, Partner at BaltCap comments on the offer: “The announced offer provides an opportunity for Xpediator shareholders to realise an attractive premium in cash despite a turbulent macro environment. Xpediator has well-established operations in the UK, the Baltics and the rest of Central and Eastern Europe, BaltCap would be excited to join Xpediator on its journey. We trust that our local presence and experience in building regional business champions will be instrumental in developing a leader in global supply chain solutions.”

The offer is made by a consortium led by BaltCap, including Xpediator’s largest shareholder Cogels Investments Limited, the investment vehicle of Stephen Blyth (former CEO of Xpediator), and Justas Versnickas, the Managing Director of, and 20% shareholder in, Delamode Baltics, a subsidiary of Xpediator.

Further information on the offer is provided within the Rule 2.7 Announcement published by Xpediator through RNS and made available on BaltCap’s website under Newsroom > Public Announcements.

BaltCap enters the Latvian social and healthcare sector

/in /by

BaltCap Private Equity Fund III (BPEF III), through its subsidiary Adoro, has signed an agreement to acquire the assets of Dzives Abece, a social care center in Latvia. With the investment, BaltCap aims to diversify the range of high-quality care services in Latvia for seniors and other client groups, such as post-treatment rehabilitation and dementia patients. Uldis Prieditis, a seasoned management professional, will serve as Adoro’s CEO. 

Acquiring the assets of Dzives Abece is BaltCap’s first step in establishing a social and healthcare chain that provides high-quality care services across Latvia. Founded in 2018, Dzives Abece is a “family-type” service provider operating a 97-bed facility in Riga.

Juris Parups, Investment Director at BaltCap, explained that the aging population is driving the increased demand for elderly care services. “We see a significant gap in high-quality services for seniors in Latvia. Latvian municipalities, including Riga, have long waiting lists for social care. Our ambition is to build Adoro into a leading elderly care chain in Latvia and introduce new high-quality services in the social care sector,“ Parups explains.

Uldis Priedītis, CEO of Adoro, welcomes BaltCap’s initiative to invest in the social and healthcare sector and promote its development in Latvia. “According to our current plans, three new social care facilities with more than 500 beds will be established within the next five years.” Priedītis adds while revealing the growth plans that Adoro has in mind, ”In addition to elderly care services,  these facilities will offer rehabilitation, physiotherapy, and other short-term healthcare services.”

BaltCap has notable experience in the care sector, considering BaltCap Growth Fund’s active investments in Estonia’s leading elderly care chain Pihlakodu and the Lithuanian-based private nursery hospital and rehabilitation center Gemma.

About BaltCap Private Equity Fund III

Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

BaltCap buys the largest bookstore in Estonia, Rahva Raamat

/in /by

BaltCap Private Equity Fund III (BPEF III) has signed an agreement to acquire Rahva Raamat, the largest integrated book retailer, publisher, and distributor in Estonia. The fund’s aim is to further boost the company’s growth across the Baltics and to make people’s reading and listening choices even more diverse and accessible through faster digitization of Rahva Raamat’s products and services. The transaction will be completed in the coming months, following approval from the Estonian Competition Authority.

The acquisition of Rahva Raamat complements the recent purchase of Lithuania’s largest publishing house, Alma Littera, and Pegasas bookstores. The aim of the acquisitions is to create a leading pan-Baltic publishing and bookstore chain with a focus on digital product offerings and new book formats.

Rahva Raamat has a diversified value offering – it has a large online bookstore and 12 stores in eight cities, 3 of which are concept stores with cafes. Rahva Raamat`s flagship store in the capital of Estonia, Tallinn, recently received the Bookstore of the Year award at the world-renowned London Book Fair. Rahva Raamat also supplies 250 retail stores across Estonia, including market leaders such as Coop, Rimi, Prisma, Maxima and Selver.

Oliver Kullman, Partner at BaltCap, says Rahva Raamat is a successful omnichannel book business in Estonia. “The main strengths describing Rahva Raamat are client focus and being a frontrunner in IT and digital solutions. Already in 2005, they launched their first e-store in Estonia, and in 2015 they created the first-of-its-kind app in the segment. In addition, it is important for us to contribute to the company’s ambition to get people to read more and thus enrich their worldview.”

“We see a lot of growth potential for book retail and publishing. BaltCap’s long-standing experience in growing businesses in the Baltics and its extensive international network create a solid platform for ambitious plans for Rahva Raamat in collaboration with the leading Lithuanian publishing house Alma Littera Group,” added Kullman.

Viljar Ots, a Member of the Board at Rahva Raamat, said that when the current owners acquired the company in 2004, their vision was to develop Rahva Raamat into the best bookstore in Europe, and this has been achieved now. “We are extremely satisfied that the business concept we initiated has been successful, and that the new owners see vast potential in internationalizing it. We could not have done it on our own. The time is now ripe to start a new and ambitious chapter in Rahva Raamat’s growth journey. Thus, we are glad to pass the baton to BaltCap. I am very grateful to all our employees, who have been devoted to Rahva Raamat, its brand and its values over the years and who have helped us rise to the level of Europe’s best bookstore,” Ots added.

About BaltCap Private Equity Fund III

Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

BaltCap to acquire Alma Littera Group, the leading publishing house & omnichannel book retailer in the Baltics

/in /by

BaltCap Private Equity Fund III (BPEF III) signed an agreement to acquire Alma Littera publishing house, Pegasas bookstores, and related group companies to further back the growth of the largest publishing house & omnichannel book retailer in the Baltics. The current management team will continue with the company. The transaction is subject to competition clearance.

“We are investing in a company with a long history, proven track-record and well-established brands in the Lithuanian book publishing and retail markets. The sector is still fragmented, and we believe the companies of Alma Littera Group are positioned to capture further growth. We see opportunities in digital distribution and new book formats, which create new incremental consumer occasions,” said Oliver Kullman, Partner at BaltCap.

Founded in 1990 in Lithuania, Alma Littera Group is the largest integrated general book publisher and retailer based in Lithuania, operating via publishing house UAB Alma littera, wholesaler UAB Alma littera sprendimai, book retailer UAB ALG knygynai, 3PL logistics provider UAB ALG logistika, and book e-commerce website UAB Knygų Klubas.

Arvydas Andrijauskas, founder and shareholder of the Alma Littera Group, says that the interest from an international fund manager like BaltCap shows they have succeeded in building an attractive and sustainable business. Andrijauskas trusts BaltCap’s long-term experience and professional team will guide the company towards achieving ambitious growth goals both in Lithuania and abroad.

The buy-side advisers in the transaction were Ellex and Persense. The transaction value and other details have not been disclosed. The transaction is subject to competition clearance – BaltCap has already applied to the Competition Council and the deal is expected to be approved within 1-2 months.

About BaltCap Private Equity Fund III

Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

BaltCap and Nalka sell INTRAC to United Partners Investments

/in /by

BaltCap Baltic Investment Fund III sells INTRAC Group, a leading distributor of machinery for forestry, construction, agriculture and industry in the Baltics, to United Partners Investments (UPI), a Baltic investment company. As a result of the transaction, UPI will acquire 100% of INTRAC Group, including shares of Nalka Invest and minority shareholders.

INTRAC Group is an exclusive importer and distributor of world-leading producers of heavy machines in Estonia, Latvia and Lithuania. The group represents John Deere Forestry, Manitou, Doosan and Case earthmoving machinery, Bomag and Massey Ferguson, as well as other brands. INTRAC Holding AB is the parent company of the INTRAC group of companies with HQs located in Stockholm.

Peeter Saks, the Managing Partner at BaltCap, says that INTRAC grew more than four times through the holding period. “Developing INTRAC has been a journey of numerous achievements but also challenges including several crisis periods and market shifts. I am content that together with the company management we have succeeded in building INTRAC into the leading heavy machinery trader in the Baltic region.” Saks added he is thankful to the management team for their dedication and grit through these years.

Marko Tali, the Investment Manager at United Partners Investments, says that the INTRAC group is an attractive investment with substantial further growth potential. „Acquiring INTRAC allows UPI to create synergies between light and heavy machinery distribution market in the Baltics,” Tali added.

Carl Leijonhielm, the Managing Director of INTRAC Group, says: “From INTRAC side, we want to thank BaltCap and Nalka for the long cooperation. Over the last 20 years. we have together continued to develop the company keeping the group’s leading position in the Baltic heavy machinery business, and we are confident that we can take the company to an even higher level in cooperation with United Partners.”

The transaction has been advised by Aureus Capital Consulting. The transaction value and other details were not disclosed. Completion of the deal is subject to regulatory approvals.

BaltCap signs agreement to sell Uprent to Renta, the fastest growing Nordic equipment rental company

/in /by

BaltCap Private Equity Fund II (BPEF II) signed an agreement to sell SIA Uprent Group – a leading specialized pumping company providing dewatering and bypassing solutions in the Baltics and Poland – to Renta Group Oy. Renta Group is a Finnish construction machinery and equipment rental company with over 100 depots and 1,000 employees in Scandinavia and Europe. BaltCap will sell Uprent Group together with its minority shareholders. Renta Group will acquire 100% of the company.

BPEF II invested in Uprent Group in 2016. During the investment period, the company successfully expanded its network of depots in the Baltics and Poland and broadened the range of service offerings, introducing new and sustainable technological solutions in the market of pumping services.

Sandijs Abolins-Abols, Partner at BaltCap, said that backing Uprent was a unique opportunity to work with a determined management team and founders and develop the company into the leading player in the Baltic and Polish markets. “The team had a very clear strategic growth objective to become a go-to-market player in pumping solutions specializing in high value-added services for dewatering and bypassing needs. We were fortunate to be a part of the transformation, during which the company expanded its geographic reach and grew professionally. We are grateful to the management and founding partners for making this investment successful,” Sandijs Abolins-Abols added.

Kari Aulasmaa, CEO of Renta Group, commented, “We consider specialized pumping a highly attractive niche rental segment, where Uprent is the clear market leader in the Baltics and Poland. We are delighted to join forces with this high-quality company where we see a talented team and significant further growth potential.”

Martins Egle, CEO at Uprent, underlined the importance of having an experienced and professional partner like BaltCap. “BaltCap´s experienced team guided us through the crucial development phase of the company that contained both ups and downs in the market,” Egle commented. “We consider this transaction a high evaluation of our success until today. Being aligned with Renta Group in the future provides us with excellent opportunities to expand geographically and further develop our product range, technical capabilities and professional expertise,” Martins Egle added.

The sell-side advisers in the transaction were Superia (financial) and Cobalt (legal). The transaction value and other details were not disclosed.

BaltCap-backed FCR Media becomes the largest digital marketing player in Benelux

/in /by

FCR Media acquires Youvia in the Netherlands.

FCR Media and Youvia have a common niche in the market—both offer professional digital marketing and social media tools and services to help self-employed people and SMEs win new customers and increase their business. The one-stop shop concept of digital marketing solutions includes a wide range of products, including online listing, websites & web shops, SEO, SEA, social media marketing and review management.

Jon Martinsen, CEO of FCR Media says the acquisition is a logical step for both companies. “The mission of FCR media and Youvia match perfectly – we both support SMEs and businesses to successfully adapt with continuous changes in media and marketing in the digital age. We see great synergies in the merger that help us to serve our customers and markets even better, ” Martinsen comments.

Simonas Gustainis, Managing Partner at BaltCap comments that BaltCap is excited about FCR’s acquisition that expands FCR’s operations in Benelux from Belgium to the Netherlands. “Youvia will strengthen FCR’s position as a partner to Benelux SMEs and speed up the roll-out of new solutions that FCR has developed specifically for the SME SaaS market,” Gustainis emphasised.

About FCR Media
FCR Media is the largest Belgian digital marketing agency for SMEs and the self-employed and has activities in Belgium, Czechia, Croatia & Romania. The company has many years of experience in the SME market with a team of experienced experts creating and optimizing websites, Google and Facebook ads and providing other digital marketing services. FCR Media has 270 employees and ca 26,000 customers.
https://fcrmedia.be/

About Youvia
Youvia, formerly DTG (De Telefoongids & Gouden Gids), offers suitable online marketing for various SMEs. The company works on online presence, findability and reach as well as the online reputation of their clients.
https://www.youvia.nl

BaltCap sells Baltic property manager BPT Real Estate to leading European property house Newsec 

/in /by

BaltCap Private Equity Fund II (BPEF II) sells a 95% majority stake in AS BPT Real Estate, one of the largest property management companies in the Baltics, to Newsec, a leading full-service property house offering property asset management and advisory across Northern Europe. This is the 6th exit of BPEF II.

BaltCap acquired BPT Real Estate (BPT) in 2015. During the holding period, the company has established itself as one of the leading independent commercial property service providers in the Baltics, with offices in Tallinn, Riga and Vilnius. BPT serves as a partner to commercial real estate investors, owners and tenants and provides a full range of real estate services, including property management, project management, technical consulting and construction supervision services.

In 2016 BPT Real Estate expanded its business into providing co-working and flexible office space solutions through subsidiary Workland which was spun off from BPT in 2019. After exiting BPT, BaltCap, together with Indrek Hääl, the former CEO of BPT Real Estate, will continue with the active development of Workland.

Sarunas Alekna, Partner at BaltCap, said he is content that BPT Real Estate will become a building block for the region’s largest real estate management company. „As usual with our exits, we’re transferring a strong business to a strategic investor with a clear vision for further development. I trust that combining BPT’s market presence and Newsec’s service offering, property owners will benefit from even higher value-add services. BaltCap will now concentrate on Workland, the provider of co-working and flexible workspace solutions, for which we see great potential,“ commented Alekna.

Ugnius Meidus, CEO of Newsec in the Baltics, says acquiring BPT Real Estate is a strategic step for the Newsec group to establish itself in all three Baltic markets and significantly bolster its position in the region.

“After the transaction, Newsec will have more than 84 commercial real estate properties under management in the Baltic countries with a total area of 880,000 square metres, and a team of 74 professionals. With the acquisition of BPT Real Estate, we will become the biggest independent real estate management company in the Baltics and will be able to offer clients the highest level of competence and expertise in the entire region. We will ensure this by implementing uniform operating standards, processes and quality management certification solutions, and by digitalizing services,” commented Meidus, who following the transaction will also be the acting CEO of BPT Real Estate.

TGS Baltic was an advisor to BPEF II in the transaction. The value of the transaction is not disclosed.

 

Additional information:

Sarunas Alekna
BaltCap, Partner
Phone: +370 6868 9242

sarunas.alekna@baltcap.com
www.baltcap.com

BaltCap backed Ridango acquired LIT Transit to become a global challenger in public transport mobility solutions

/in /by

BaltCap portfolio company Ridango acquired a 100% stake in LIT Transit, a Slovenian based firm providing IT solutions for public transportation. The new group now operates in more than 25 countries and makes the service provided by transport agencies and operators simpler and more convenient, with end-users being the ultimate beneficiaries.

Ridango is an Estonian company specializing in the development of systems for public transport ticketing as well as payments and RTPI solutions.

“Our joint ambition is to become one of the leading providers of public transport mobility technology systems globally by 2026. The acquisition of LIT Transit is an important milestone, as they’re leading players in the public transport real-time industry,” commented Erki Lipre, the Chairman of the Management Board of Ridango.

Lipre explains Ridango’s main focus has been account-based ticketing and payments in the Baltic and Nordic markets. “In 2012 we launched the first sizeable account-based ticketing solution in Europe and Ridango was the first to bring contactless bank card payments into public transport in the region. The current transaction will significantly increase our global reach and the number of markets we operate, as well as provide very strong expertise in real-time and ticketing solutions,” Lipre adds.

“I believe Ridango and LIT share a common goal simplifying the complex processes in public transport through technology and we are both committed to enhancing public transportation worldwide,” said Bogdan Pavlič, CEO of LIT Transit. “Our team is very excited about joining Ridango and the ability to bring even more knowledge and resources to all customers.”

Ridango is operating in Estonia, Sweden, Finland, Lithuania, Norway, Ukraine, and Greenland.

Following the acquisition of LIT Transit, the group now offers its ticketing, transit management (AVL/CAD/RTI) and payment solutions in countries and cities like Singapore, Hong Kong, India, Saudi Arabia, Australia, Qatar, New Zealand, Oman, and many more.

“The market is moving fast, and we are well placed to move along with it. A strong team and largescale product development play an important role here, so that every customer’s experience is world-class,” said Lipre. “LIT Transit has a strong team and the product portfolio of the two companies complement each other perfectly. Bogdan Pavlič and Rado Skender, the cofounders of LIT Transit, will join our leadership team at the group level.”

The legal advisors for the transaction were Šelih & Partnerji (Slovenia) and RASK Law Firm (Estonia). Due diligence was performed by PwC. The transaction was financed by SEB Bank.

Ridango is headquartered in Tallinn, Estonia and is an intelligent transportation solutions provider founded in 2009. Being one of the most proven account-based ticketing and contactless bank card acceptance providers for public transport globally, Ridango has successfully executed projects in Nordic countries and the CEE region.

LIT Transit was founded in 2012 in Slovenia and has customers in Hong Kong, Singapore, India, Middle East, Mexico, etc. Among other solutions, LIT has a leading Transit Management System and a world-class ETA prediction engine.

Piletilevi Group’s CEO Sven Nuutmann on acquiring Tiketa

/in , /by

BaltCap backed Piletilevi Group, an international group of companies engaged in ticketing and event planning, announced the completion of the acquisition of Lithuanian ticketing services provider Tiketa. We had a chat with Sven Nuutmann, the CEO and shareholder of Piletilevi Group, to ask about the add-on investment and growth plans of the group.

What role does Tiketa play in the growth plans of Piletilevi Group?

Following a challenging year, the acquisition of Tiketa is a step towards planned expansion and digitalization of our group’s services portfolio. With the acquisition and product integrations, Piletilevi will significantly expand and strengthen its services. The unified platforms and market development will create new opportunities for numerous counterparts – consumers, event organizers, promoters, venues, and employees.

What are the next milestones for Piletilevi Group?

Piletilevi Group’s aim is to lead a rapid market recovery in live events businesses after the Covid-19 pandemic. Strengthening the organizational and digital capabilities in event management are the key triggers to innovation which, we believe, will bring customers and partners a better user experience, more quality events and therefore best value in the region.

What will you focus on in the coming years?

We plan to invest more than 5 million euros into our IT environment in 3 years, consolidating the three Baltic countries markets assets and efforts.

We will focus on building a unified software platform and digital marketplace development, which will create a basis for best consumer value, culture development and will also drive sustainability of the sector. For us it is important to remain close to the ticket buyer and provide high security, modern additional services and constantly improve user-friendliness.

The attention is on a user-friendly self-service environment for partners, integration of dynamic pricing, marketing and sales analytics. We build on many years of experience of Piletilevi Group, international know-how, and continuous research.

You recently announced that Lithuanian Competition council required post-completion merger filing concerning the add-on, why did this happen?

The Lithuanian Competition Council can use their discretionary power to ask for a post-closing merger filing, even if the deal does not exceed the set transaction thresholds (as in case of Tiketa). We will of course cooperate with the council and present the needed information and our views.

BaltCap backed Workland buys UMA centers in Tallinn and Vilnius

/in /by

BaltCap portfolio company Workland, a fully serviced offices and coworking centers group, is expanding its network by taking over two strategic UMA locations in Tallinn and in Vilnius. With the acquisition, Workland Group will secure its position as the market leader in the Baltics, offering unique coworking and office space solutions in all Baltic capitals.  

According to Workland founder and chairman of the board Indrek Hääl, expanding the network of centers is a logical step in the current market situation. “Demand for coworking centers and fully serviced offices is growing, primarily owing to the flexibility and cost-effectiveness it offers to the clients.” 

With the transaction, Workland secures its position as the market leader in the number of workstations in the Baltics. As a result of the acquisition, nearly 450 workstations will be added to the current 1,200 in Estonia, Latvia and Lithuania, which will lead to a 40% increase. The acquired centers will start to operate under Workland brand.  

The increasing popularity of the coworking centers has been significantly influenced by Covid-19 related changes in working life. “Coworking centers allow the tenant to pick a suitable contract period, select the number of desks according to the changing needs and the growth rate of the business. This enables to successfully combine home and city office while optimizing the costs for teams that work partly remotely,” Hääl explained. 

Forecasts indicate that 30% of all office space will be consumed flexibly by 2030.  “In 15-20 years, this number could even be higher, the pandemic has significantly accelerated it. Never before have we seen such a rapid increase in interest towards Workland services as in the last year,” says Hääl. “As a next step, we are developing a collaboration model with commercial building owners and developers to expand even more vigorously and bring a flexible office concept solution to every major commercial building.” 

BaltCap backed Workland Group is the largest network of coworking spaces in the Baltics with 10 centers – four in Tallinn, one in Riga, four in Vilnius and one in Kaunas. Workland’s mission is to provide inspiring workspaces on flexible terms with professional support services and a community that supports the company’s growth. 

 

Additional information:

Šarunas Alekna
Partner, BaltCap Private Equity Fund II
Phone: +370 6868 9242
sarunas.alekna@baltcap.com
www.baltcap.com 

BaltCap sells the leading Estonian waste management company Eesti Keskkonnateenused

/in /by

BaltCap Private Equity Fund II (BPEF II) sells 75% majority stake in AS Eesti Keskkonnateenused, the leading waste management company in Estonia, to OÜ MBA Investeeringud.

BaltCap acquired Eesti Keskkonnateenused in 2015. During the six-year holding period, the company invested heavily into expansion of services organically and by M&A. Through 5 significant add-on acquisitions the company has expanded into treatment and collection of secondary raw materials and road cleaning, and has strengthened its position as the leading provider of waste management and municipal services in Estonia.

Eesti Keskkonnateenused and its group companies provide a wide range of waste management services including collection, transportation of municipal solid waste, construction waste, as well as recycling and resale of secondary raw materials. EKT increasingly engages in cleaning of streets and public areas and hazardous waste collection and treatment.

Peeter Saks, Managing Partner at BaltCap is content that during BaltCap’s ownership EKT strengthened its position as a market leader and expanded its service range.

“EKT has achieved many relevant milestones over the last six years. The company has more than doubled its revenues and has successfully diversified into new business lines. Two new important initiatives, the construction of a biogas plant and expansion of the hazardous waste treatment plant, will be completed in the coming years. Therefore, we are happy that current EKT management will continue to build the business further and are thankful to Argo Luude and management team for their contribution,” Saks comments.

Argo Luude, the CEO and co-owner of EKT emphasized that BaltCap had a crucial role in EKT´s growth journey. “The strategic backing of BaltCap enabled us to expand activities of EKT, providing necessary resources and know-how. We are thankful to BaltCap for the partnership,” Luude says.

Superia and TGS Baltic were advisors to BPEF II in the transaction. The deal was financed by LHV Bank and private bond investors.

OÜ MBA Investeeringud is a company owned by Argo Luude, the co-owner and CEO of EKT, as well as Mihkel Õnnis and Bruno Tammaru, also co-owners and members of the Management Board of EKT.

 

Additional information:

Peeter Saks
Managing Partner
peeter.saks@baltcap.com
www.baltcap.com 

BaltCap has agreed to sell Ecoservice to Eco Baltia, the largest environment management group in the Baltics

/in /by

BaltCap Private Equity Fund II (BPEF II) has agreed to sell Ecoservice, the leading player in waste management industry in Lithuania, to Eco Baltia Group, the largest environment management group in the Baltics backed by private equity fund INVL Baltic Sea Growth Fund and European Bank for the Reconstruction and Development. Saulius Budrevičius, CEO and co-owner of Ecoservice will continue in his current role. 

BaltCap acquired Ecoservice in 2014. During the seven-year holding period the company modernized its vehicle fleet, strongly extended the range and geography of services through 5 add-on acquisitions and strengthened its position as the leading waste management company in Lithuania. 

Currently, Ecoservice is servicing more than 40% of the country’s territory. The company engages in collection, transportation, sorting and processing of different types of waste, city cleaning and street maintenance, and providing a wide range of other environmental services across Lithuania.  

Šarunas Alekna, Partner at BPEF II says he is content that during BaltCap’s ownership Ecoservice solidified its position as the leading and most modern provider of environmental services in Lithuania. “It has been a privilege to partner with Ecoservice´s management team and contribute to its growth journey. It is important for us that the new owner has a vast experience in the sector – we are excited to witness the further growth of the company,” Alekna comments. 

Saulius Budrevičius, the CEO and co-owner of Ecoservice emphasized BaltCap’s essential role in the company’s growth. “The strategic backing of BaltCap enabled us to expand activities of Ecoservice from 14 to 25 municipalities and volume wise almost double the scope of environmental services. We also grew the family of Ecoservice employees almost 2-fold during the last 7 years. We look forward to further expanding the range of our services and contributing to the creation of circular economy in Lithuania in partnership with Eco Baltia,” Budrevičius said. 

Maris Simanovičs, Chairman of the Board at Eco Baltia, commented, “This deal strengthens Eco Baltia’s market position as the largest environmental management group in the Baltics while also entering a new geography in the form of the Lithuanian market. With this acquisition, our combined revenues will grow by over 50% to more than €100m. Combining with Ecoservice will enable us to offer new product lines and services for clients both in Latvia and Lithuania. As the circular economy continues to grow in the Baltics, Eco Baltia is well positioned for the next chapter of growth for the Group.” 

Superia, PWC and TGS Baltic were advisors to BPEF II in the transaction. 

 

Additional information:

Šarunas Alekna
Partner, BaltCap Private Equity Fund II
Phone: +370 6868 9242
sarunas.alekna@baltcap.com
www.baltcap.com

BaltCap closes the third buyout fund at record size 

/in /by
  • BaltCap Private Equity Fund III (“BPEF III”) held the final close at hard cap, raising €177 million (incl. co-investment facility) – the largest Baltic private equity fund 
  • BPEF III contributes to further integration of the New Nordics having the mandate to invest both in the Baltics and the Nordics  
  • BPEF III commits to sustainability – makes positive environmental and social impact top priority across investment portfolio 

BaltCap Private Equity Fund III (BPEF III) aims to make up to 10 platform investments in the New Nordics and continues the proven buy-and-build strategy of its predecessor funds. BPEF III targets mature enterprises in the Baltics and Nordics with enterprise values between €10 to €100 million.

The support of BaltCap’s longstanding investors was complemented by a significant number of new investors encompassing top-tier international institutional investors, fund-of-funds and family offices. For the first time in BaltCap’s buyout funds history, high-net-worth individuals committed to the fund.

“We are proud of the performance of our BPEF II fund portfolio and believe that there is value in the New Nordic region we have yet to unlock. We are grateful for the strong vote of confidence from our investors and welcome fund-of-funds, pension funds and family offices as new investors. We are excited to continue creating value for our existing and new partners with grit and confidence,” commented Martin Kõdar, Managing Partner at BaltCap.

BaltCap’s strategy is to partner with top management teams and transform local companies into international business champions. “Closing BPEF III gives us a fresh mandate to further our mission and take New Nordic companies to the global market. The successful closing marks another milestone in our growth story, manifesting BaltCap’s position as the largest private equity firm in the Baltics,” Simonas Gustainis, Managing Partner at BaltCap comments.

Peeter Saks, Managing Partner at BaltCap, emphasizes that BPEF III broadens the scope of BaltCap target markets and in addition to the Baltics focuses also on Finnish and Swedish companies with a Baltic nexus.

“The Nordic and Baltic economies are increasingly forming an integrated market, the New Nordics. It is a technology-driven and synergy-providing business environment that opens up innovative business opportunities. BPEF III seeks to further facilitate business integration in the New Nordics,” Saks explained.

BPEF III is committed to make investments with a positive impact on environmental, social and governance matters. BaltCap has prioritized building sustainable businesses since its founding in 1995.  ESG factors are fully integrated into the operations of BaltCap and its portfolio companies. BaltCap has a 10-year track record of reporting ESG performance.


About BaltCap Private Equity Fund III 
BaltCap Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. The investors of BPEF III include the European Investment Fund (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 family offices. The EIF’s investment is made on behalf of Baltic Innovation Fund 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and the EIF, as well as benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

About BaltCap 
BaltCap strives to build the New Nordic companies into internationally recognized business champions. We partner with top management teams and entrepreneurs, helping them to achieve their ambitions and deliver transformational growth, both regionally and internationally. Our approach has enabled BaltCap to become the most experienced and largest private equity investor dedicated to the Baltic region, covering buyout, growth capital, infrastructure and venture capital. Since our foundation in 1995, BaltCap has raised multiple generations of private equity funds with aggregate capital of over €650 million backed by institutional investors. We have invested in about 100 companies across a wide range of industry sectors and stages of development. Our team of 34 investment professionals covers the region through 6 offices in Tallinn, Riga, Vilnius, Warsaw, Helsinki and Stockholm.


Additional information:

Martin Kõdar
Managing Partner
+372 665 0280
martin.kodar@baltcap.com
www.baltcap.com

BaltCap sells Qvalitas and Unimed to leading Nordic healthcare company Mehiläinen

/in /by

BaltCap Private Equity Fund II (BPEF II) sells the Estonian private healthcare companies – occupational healthcare provider Qvalitas Arstikeskus and dental care chain Unimed Grupp – to Mehiläinen, the leading private provider of health care and social services in Finland. BaltCap exits through selling its holding company DenCap, Mehiläinen acquires 100% of the companies.

BPEF II invested in Unimed and Qvalitas in 2015 and 2016, respectively. During the investment period, both companies successfully expanded their nation-wide clinic networks, upgraded medical equipment and IT-solutions and strongly improved their service offering.

Martin Kõdar, Managing Partner at BaltCap said they had a unique opportunity to back Unimed in becoming a leading player in Estonian dental healthcare and help Qvalitas to expand its reach as an occupational healthcare provider.
“Under our ownership, both companies have become vital countrywide service providers shaping the long-term development of health care sector in Estonia. We are grateful to the managements and medical professionals of Qvalitas and Unimed for their contribution and grit,” Kõdar emphasizes. “We also recognize the co-investors EIF, eQ Private Equity and healthcare industry expert Erki Mölder for their support and contribution in making this investment a success,” Kõdar adds.

“The entrance of Mehiläinen marks an important milestone for the Estonian healthcare market and will widen the service offering to patients and to the entire Estonian healthcare,” Oliver Kullman, partner at BaltCap says. “We value the long-term expertise of Mehiläinen in combining traditional medical operations and digital services and trust their vision as a strong strategic partner to Qvalitas and Unimed,” Kullman adds.

Janne-Olli Järvenpää, Mehiläinen’s CEO comments, “Both Qvalitas and Unimed are leaders in their fields in terms of revenue, quality and customer satisfaction. We have been following the development of the companies’ operations for years and have been impressed by both the competence of their experts and the ability of their management to develop the operations. In the future, Mehiläinen’s resources and competence in areas such as combining traditional medical clinics and digital services will support the continuous development of the companies’ quality and customer service.”

Marja-Liisa Alop, the CEO of Unimed emphasized BaltCap´s role as excellent partner with essential role in the company´s growth journey. “We were incredibly lucky to have an owner like BaltCap. Their experienced team guided our way out of a very difficult situation and helped to make a remarkable turnaround in Unimed´s development. The strategic backing of BaltCap enabled us to invest in new and existing clinics and was also critical when coping with the Covid-19 crisis. We look forward to working with Mehiläinen to further improve our patients’ satisfaction and provide the best working conditions to our team of professionals.”

“Together with BaltCap, we have greatly matured as a company and a team while going through a significant growth phase. I would like to thank BaltCap team for their partnership and trusting cooperation,” Tõnu Velt, the CEO of Qvalitas says. “We are excited to continue our growth and further our mission with a respected industry leader from the Nordics,” Velt added.

The sell-side advisers in the transaction were Superia (financial), Ellex Raidla (legal) and KPMG.  The transaction value and other details are not disclosed. Completion is subject to regulatory approvals.

About BaltCap Private Equity Fund II 

BaltCap Private Equity Fund II (BPEF II) is a buyout fund that makes equity investments in innovative companies based in the Baltic region focusing on buy-and-build opportunities. BPEF II was established in cooperation with the European Investment Fund (EIF) involved in the project through the Baltic Innovation Fund (BIF). The BIF is an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF. The other investors of BPEF II include the EBRD, Baltic pension funds, fund-of-funds and family offices.

 

Additional information:

Martin Kõdar
Managing Partner
+3726650282
martin.kodar@baltcap.com
www.baltcap.com

BaltCap to acquire Baltic Ticket Holdings, the leading ticketing company in the Baltics and Belarus

/in /by

BaltCap Private Equity Fund III (BPEF III) acquires majority in Baltic Ticket Holdings OÜ to further back the growth of the ticket selling network in the Baltics and beyond. A minority share is acquired by co-investor Sven Nuutmann, who will serve as group CEO. The current management team will continue with the company. The transaction is subject to competition clearance.

Founded 1997 in Estonia, Baltic Ticket Holdings (BTH) is the largest ticketing services provider in Estonia, Latvia, Lithuania and Belarus operating Piletilevi AS, Bilesu Serviss SIA, Nacionalinis bilietu platintojas UAB and Kvitki Bel as the main platforms.

BTH main line of business is ticket sales through digital platforms and a network of over 700 physical sales points. In 2019, over 6 million tickets to more than 36,000 events were intermediated. In addition, BTH offers marketing and consultation services. BTH has experience in serving a wide range of cultural and sports events, also including the largest events in the region with more than 100,000 participants.

Co-investor Sven Nuutmann will also be serving as group CEO. Nuutmann is a seasoned expert in the media industry and he brings extensive experience in building companies as a CEO. „This investment allows to further develop BTH platforms and improve its service offering. The business and the management team are familiar to me and thus, provide a smooth transition into my new role. I’m eager to start a new chapter of BTH growth story with the current team,” Nuutmann commented.

Jaanus Beilmann, longtime member of BTH management board says the investment assures international competitiveness of the Estonian rooted BTH. He is excited to partner up with the new owners. „Sven and BaltCap team have a great track record of developing successful strategies for digital businesses. Building on their extensive experience and having access to BaltCap’s international platform with presence across the New Nordics will lead BTH´s future success,” Beilmann assures.

Oliver Kullman, partner at BaltCap sees growth potential in the market and values BTH track record in digital ticketing solutions. “Although 2020 was a rough year for culture and entertainment, we believe the market will quickly recover once Covid-19 restrictions are eased. We plan to use the recovery phase to invest in upgrading the company’s digital products and solutions,” Kullman comments. “I look forward to working with the current management team, who have developed the group to its current position, and welcome Sven’s extensive experience that will help develop BTH further,” Kullman adds.

The buy-side advisers in the transaction were Cobalt, PwC and Civitta. The transaction value and other details have not been disclosed.

About BaltCap Private Equity Fund III

Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

 

About BTH

Baltic Ticket Holdings OÜ is the holding company operating AS Piletilevi, Bilesu Serviss SIA, Nacionalinis bilietu platintojas UAB, Kvitki Bel companies in Estonia, Latvia, Lithuania, and Belarus, respectively.  The company provides ticketing services via its websites (www.piletilevi.ee, www.bilesuserviss.lv, www.bilietai.lt and www.kvitki.by) as well as more than 700 sales points.

Read more https://www.piletilevi.ee/eng/bth/

 

Additional information:

Oliver Kullman
BaltCap, Partner
+372 56 463 642
oliver.kullman@baltcap.com
www.baltcap.com

Sven Nuutmann
+372 513 2881
sven.nuutmann@gmail.com

 

BaltCap portfolio company Coffee Address completed the acquisition of Kafe-Serviss

/in /by

Coffee Address Holding, the leading vending and coffee service company in the Baltics operating under the Coffee Address brand, has completed the acquisition of another vending operator in Latvia – SIA Kafe-Serviss.

Sandijs Abolins-Abols, partner at BaltCap is content that an important transaction has been closed despite covid-19 related circumstances.

“The transaction was signed in December 2019 and closed almost a year later, on November 17, 2020. Covid-19 pandemic impacted decision-making timeline of approval by the Competition Council of the Republic of Latvia and macro-economic uncertainty impacted finalization of the deal. The dedication and perseverance of the Coffee Address team has been remarkable in finalizing the transaction,” Abolins-Abols commented.

“Joining forces with Kafe-Serviss team will enable us to create considerably better product and service offering for our existing and future customers in the Latvian market,” said Viktorija Meiksane, the board chairwoman of Coffee Address Holding.

“I am happy that both parties believed in mutual benefits of the transaction to the end and were able to successfully overcome the covid-19 related challenges,” Meiksane added.

Coffee Address is the leading vending and coffee service company specializing in office and on-the-go coffee in the Baltics. It is a market leader in the Baltics providing self-service premium coffee and convenience food solutions by serving over 250,000 cups of coffee a day. Coffee Address has been in the business since 1993. The company is actively consolidating the Baltic market – since 2017, Coffee Address has acquired Estonian company Vending Automaadid OÜ, Lithuanian company Pardavimo Automatai UAB and Estonian company 7Kohvipoissi OÜ.

The transaction was advised by Oaklins’ Latvian team, transaction value has not been disclosed.

 

For more information please contact:

Sandijs Abolins-Abols
Partner
Phone +371 6735 6396
sandijs.abolins-abols@baltcap.com
www.baltcap.com

BaltCap portfolio company Coffee Address to acquire 7Kohvipoissi

/in /by

Coffee Address Holding, a vending and coffee service company in the Baltics operating under the Coffee Address brand is to acquire Estonian vending and coffee service company 7Kohvipoissi.

“Estonia has a rapidly developing coffee service and vending market. This transaction lets us better use opportunities provided by the current market situation,” said Coffee Address Holding Board Chair, Viktorija Meiksane. “Joining forces with the 7Kohvipoissi team will enable us to create considerably better service and product offering for our existing and future customers in the Estonian market,” Meiksane added.

Vallo Tonsiver, the CEO of 7Kohvipoissi commented: “The transaction allows to optimize the company’s operations and make the processes more efficient. We trust that under the management of an active owner such as BaltCap, the service field we have developed so far has a huge development potential.”

Coffee Address is the leading vending and coffee service company specializing in office and on-the-go coffee in the Baltics. It serves over 250,000 cups of coffee a day, and has been in the business since 1993. The company is actively consolidating the Baltic market – since 2017, Coffee Address has acquired Estonian company Vending Automaadid OÜ and  Lithuanian company Pardavimo Automatai UAB.

The transaction value has not been disclosed.

For more information please contact:

Sandijs Abolins-Abols
Partner
Phone +371 6735 6396
sandijs.abolins-abols@baltcap.com
www.baltcap.com

 

BaltCap acquires leading Lithuanian meat processing companies Krekenavos Agrofirma and Mėsa LT

/in /by

BaltCap Private Equity Fund III (BPEF III) has completed the acquisition of the largest Lithuanian meat processing companies Krekenavos Agrofirma and Mėsa LT.

BPEF III has financed acquisition of Krekenavos Agrofirma through Mesa LT and became majority owner of the joint company. Linas Grikšas, CEO at Krekenavos Agrofirma participated in the transaction by acquiring minority stake. The transaction has been cleared by the Competition Council in March this year. This is the first investment by EUR 126 million BPEF III fund which has been established by BaltCap in 2019.

“This is a classical BaltCap deal fully in line with the fund’s “buy-and-build” strategy. We are investing in a sector with a great potential for consolidation and a company with the ability to grow into a regional champion,” said Šarūnas Alekna, partner at BPEF III fund. “We’re partnering with a professional management team, which has demonstrated ability to sustain business integrity and adapt to changing environment even in the face of global crisis. The deal has been closed despite the COVID-19 related lockdown and I believe it transmits positive message to the whole market that life does not cease,” Alekna added.

Linas Grikšas, the CEO of Krekenavos Agrofirma, noted that COVID-19 pandemic had affected the food industry less than other sectors, however disrupted supply chains and changing consumer preferences bring challenges for the entire industry. “”In the right place at the right time” is a very appropriate saying for this transaction. I am sure that the long-term experience and professional know-how of the BaltCap team will lead us to further growth. It is important to have a reliable partner when facing the challenges in the new reality,” Grikšas commented.

AB Swedbank provided the loan of EUR 16 million for the acquisition and refinancing of existing liabilities. Antanas Sagatauskas, Head of Corporate Banking at Swedbank, says that even in a turbulent time the bank strives to support and strengthen Lithuanian businesses. “We are happy to play a major role in financing the acquisition of one of the largest and most important meat processing companies in Lithuania. It is important that an agreement has been reached in quite a complicated period for Lithuania and the whole world,” Sagatauskas said.

TGS Baltic acted as a legal advisor for BaltCap.

Krekenavos Agrofirma recorded sales revenue of EUR 122 million last year and has a net profit of EUR 4.7 million. Mėsa LT’s revenue in 2019 amounted to EUR 0.7 million.

BaltCap Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. BPEF III was established in co-operation with European Investment Fund (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. EIF has invested through Baltic Innovation Fund 2 (BIF 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF) and EIF’s investment in BPEF III also benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

Krekenavos Agrofirma is one of the largest agricultural companies in Lithuania with more than 20 years history in the business and one of the largest and most modern meat processing plants in the Baltic States. The company is located in Mantviloniai village, Kėdainiai district and has an area of more than 20 thousand sq. m. It is a growing company continuously improving and investing in the latest production technologies, new equipment, as well as the systematic improvement of work safety and competence of employees. Mėsa LT holds several well known brands in meat category.

Additional information:

Sarunas Alekna
Partner, BaltCap Private Equity Fund III
Phone: +370 6868 9242
sarunas.alekna@baltcap.com
www.baltcap.com

Coffee Address to acquire Latvian vending and coffee service company SIA Kafe-Serviss

/in /by

BaltCap portfolio company Coffee Address Holding, a vending and coffee service company in the Baltics (operating under Coffee Address brand) will join forces with another vending operator in Latvia – SIA Kafe-Serviss.

“Latvia has a rapidly developing coffee service market. The same can be said about vending and with this transaction we will be able to better use opportunities provided by the current market situation. Joining forces with Kafe-Serviss team will enable us to create considerably better product and service offering for our existing and future customers in Latvian market,” the board chairwoman of Coffee Address Holding Viktorija Meiksane said in a press release.

The transaction is pending approval of the Competition Council of the Republic of Latvia.

The value of the deal has not been disclosed.

Coffee Address Holding is owned by private equity company BaltCap.

 

For additional information please contact:

 

Sandijs Abolins-Abols
Partner,BaltCap
Phone +371 6735 6396
sandijs.abolins-abols@baltcap.com
www.baltcap.com

Viktorija Meiksane
Baltic Coffee Holding
Phone +371 2911 7768
Viktorija.Meiksane@coffeeaddress.com
www.coffeeaddress.lv

BaltCap has signed an agreement to acquire Krekenavos Agrofirma

/in /by

BaltCap Private Equity Fund III has signed an agreement to acquire Krekenavos Agrofirma, the largest meat processing company in Lithuania. The transaction is subject to competition clearance – BaltCap has already applied to the Competition Council and the deal is expected to be approved within 1-2 months.

This will be the first investment made by BaltCap Private Equity Fund III (BPEF III), the fund that had its first close of EUR 126 million 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. Strong management team and market potential allow us to expect value growth and provide various opportunities for development,” said Šarūnas Alekna, Partner of BPEF III.

The deal is in line with the fund’s buy-and-build strategy.

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.

For more information please contact:

Sarunas Alekna
Partner, BaltCap Private Equity Fund III
Phone: +370 6868 9242
sarunas.alekna@baltcap.com
www.baltcap.com

Estonia
 Skyon, Maakri 30, 24th floor / Tallinn 10145
Phone: +372 665 0280 / Fax: +372 665 0281

Latvia
Jaunmoku 34 / Riga LV-1046
Phone: +371 6721 4225

Lithuania
J.Jasinskio 16b / Vilnius LT-03163
Phone: +370 5 254 6713

Poland
WeWork, Krucza 50 / Warsaw 00-025