INVL Baltic Sea Growth Fund Strengthens Portfolio with Pehart Group

INVL Baltic Sea Growth Fund Completes Acquisition

INVL Baltic Sea Growth Fund, recognized as the leading private equity fund in the Baltics, has successfully finalized its investment in Pehart Group, a top producer of household and industrial paper products in Romania. This strategic acquisition was made possible through a financing package exceeding EUR 150 million, facilitated by a consortium including the International Finance Corporation (IFC), Banca Transilvania, and ING Bank Romania. This funding not only supports the transaction but also aims to spur further development within Pehart Group.

Partnership with Abris Capital Partners

The recent transaction involves Abris Capital Partners, who previously held ownership of Pehart Group. This successful collaboration is expected to drive numerous enhancements in the company's capabilities and market reach. Vytautas Plunksnis, a Partner at INVL Baltic Sea Growth Fund expressed enthusiasm regarding the investment, stating the intention to bolster Pehart Group's manufacturing capacities and pursue additional acquisition opportunities. This growth-focused initiative underscores a commitment to maintaining the company’s strong market position.

Comments from Company Leadership

Gabriel Stanciu, the CEO of Pehart Group, shared insights about the partnership with INVL Baltic Sea Growth Fund, acknowledging the alignment with their development plans. The collaboration is viewed as an opportunity to enhance Pehart's market leadership and encourage innovation within the company’s offerings. Stanciu highlighted ongoing commitments to investing in advanced technologies and expanding into new international markets.

Abris Capital Partners' Perspective

Adrian St?nculescu, Partner and Head of Romania at Abris Capital Partners, noted the significance of the partnership formed over the years. The collective efforts have transformed Pehart into a formidable regional entity, displaying the values and growth achieved during their tenure. The partnership with INVL Baltic Sea Growth Fund is anticipated to further the rapid growth trajectory of Pehart.

Financing and Economic Impact

The financing led by IFC, a member of the World Bank Group, highlights a commitment to fostering sustainable economic development while addressing Romania’s energy challenges. Marcelo Castellanos, IFC’s Senior Country Manager for Southeastern Europe, emphasized the importance of supporting Pehart in the green transition, job creation, and climate goals. This investment also reaffirms the role of private capital in driving significant economic advancements.

Sustainable Growth Strategy

Pehart Group is dedicated to continuous improvement and sustainability within its business practices. With a rich history of 187 years, it ranks among Southeast Europe's largest paper manufacturers, producing various products from toilet paper to industrial jumbo rolls. The company’s revenue hit EUR 165 million in 2024, employing over 550 individuals. The diversification of Pehart's product portfolio, including the launch of the SOVIO brand aimed at the Away-from-Home sector, represents a strategic move to capture new market segments.

Commitment to Innovation

INVL Baltic Sea Growth Fund is poised to support Pehart's ambitions for sustainable growth and market expansion. Deimant? Korsakait?, Managing Partner at INVL Private Equity Fund II, remarked that the acquisition marks a pivotal milestone for the fund, solidifying a diverse portfolio that spans multiple regions. The focus on strategic investments within the area reflects the ambition to elevate companies with high-growth potential.

About INVL Baltic Sea Growth Fund

With a fund size of EUR 165 million, the INVL Baltic Sea Growth Fund is at the forefront of private equity in the Baltics, driven by an anchor investment from the European Investment Fund (EIF). The empowering collaborations are aimed at fostering growth via investments in innovative, high-purpose small and medium-sized enterprises across the Baltic region. This fund is managed by Invalda INVL, a top asset management group surpassing EUR 1.9 billion in assets under supervision.

Frequently Asked Questions

What is the significance of the acquisition by INVL Baltic Sea Growth Fund?

The acquisition of Pehart Group enhances INVL Baltic Sea Growth Fund's investment strategy and expands its footprint in the sustainable paper products sector.

Who provided financing for the Pehart Group acquisition?

A consortium including the International Finance Corporation (IFC), Banca Transilvania, and ING Bank Romania provided financing exceeding EUR 150 million for the acquisition.

What is the main focus of Pehart Group's future strategy?

Pehart Group intends to invest in new technologies, diversify its product offerings, and expand its international presence to strengthen its regional leadership.

How does the acquisition impact economic growth in Romania?

The transaction is expected to create jobs, promote innovation, and support Romania’s economic advancement through sustainable practices.

What is the history of Pehart Group?

Pehart Group has a rich legacy of 187 years, positioning itself among Southeast Europe's leading manufacturers of paper products.

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