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.
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