BaltCap, the largest private equity and venture capital investor in the Baltics, will invest in the group of waste management companies that include AS Eesti Keskkonnateenused and Epler & Lorenz AS (EKT or Group). BaltCap Private Equity Fund II, advised by BaltCap, has agreed to invest in the Group acquiring a 75% ownership stake. The management team will own 25% of the shares.
“BaltCap is excited to support the Group’s further growth. Environmental services will have an increasingly important role in the industrial, construction and municipal sectors. EKT is a well-run company with highly dedicated employees and outstanding customer relationships and we see significant potential for the company to continue its growth in Estonia, both organically and through acquisitions. EKT is a very strong brand signaling reliability, security and quality among its customers. It will also fit very well with our recent acquisition of the largest waste manager in Lithuania – Ecoservice,” says Peeter Saks, Managing Partner at BaltCap.
“EKT management looks forward to having BaltCap on board as a new investor. There are lots of opportunities in the market and to execute all of them we need a strong financial partner. Together it is definitely possible to strengthen the company’s market position and invest into new technologies to improve environmental situation in different countries,” says Argo Luude, CEO of the Group.
The transaction is planned to be completed in January 2016 and is subject to the approval of the Estonian and Lithuanian competition authorities. The parties have agreed not to disclose the transaction price.
About BaltCap Private Equity Fund II
BaltCap Private Equity Fund II (BPEF II) 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.
EKT and related companies are the leading waste management and municipal services company group in Estonia. EKT’s main activity is collection of municipal waste (MSW). In addition to that, EKT collects secondary raw materials, construction waste and other types of waste. In certain municipalities EKT also provides street maintenance service in winter. The Group services more than 100 thousand customers in Estonia and treats more than 250 thousand tons of waste annually. The Group has 500 employees and its turnover will exceed 27 million euros in 2015.
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