INVL Baltic Sea Growth Fund signs agreement to acquire the Pehart Group in Romania

INVL Baltic Sea Growth Fund, the private equity fund in the Baltics, has signed an agreement to acquire shares in Pehart Group, a producer of household and industrial paper products in Romania and owner of the oldest paper factory in Romania with a 187-year tradition.

The transaction with Abris Capital Partners is expected to be completed in the first quarter of 2025, subject to obtaining the necessary regulatory approvals and fulfilling other conditions stipulated in the agreement.

The Pehart Group produces toilet paper, paper towels, napkins, and other hygiene paper products, as well jumbo rolls, used in the converting process into paper products for household and industrial use. In 2023, the Pehart Group generated revenues of EUR 168 million and employed nearly 550 people across its companies.

”In continuing the development strategy of our company, we are looking forward to this new partnership with INVL Baltic Sea Growth Fund. Pehart Group, a Romanian brand with a lasting tradition and a history strongly linked to the beginning of consumer paper processing in Romania, had a remarkable evolution in the past years alongside a valued partner on this journey, and for that we thank Abris Capital Partners. We are ready to leverage the growth opportunities and enhance our market position together with our new partner. We will continue to focus on operational excellence, creating value for consumers and extending our position in the region. The confidence that INVL Baltic Sea Growth Fund has shown in our vision and potential is a testament to the value and performance of our team”, said Gabriel Stanciu, CEO Pehart Group.

“Partnership has always been central to our philosophy, and we’re thrilled at the prospect of collaborating with the Pehart Group’s management team. Upon successful completion of the transaction, Pehart Group will become the tenth portfolio investment of the INVL Baltic Sea Growth Fund, marking a significant milestone in completing the fund’s portfolio. The fund is committed to implementing strategies that drive operational excellence, create long-term value for all stakeholders and build industry leaders in the region. We are excited to support the management team in strengthening Pehart Group’s market leadership and driving its next phase of growth”, – said Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund.

”We are most proud of the management team at Pehart and grateful for their relentless dedication in steering the company through both challenging times and market opportunities. We are confident in their ability to continue Pehart’s positive evolution and consolidate its position as a top player on the regional market. This milestone marks the end of an excellent partnership and confirms the success of our strategy to support high-potential companies in achieving their growth objectives”, said Adrian Stanculescu, Partner and Head of Romania at Abris Capital Partners.

Equity for the deal will be provided by the INVL Baltic Sea Growth Fund and some of its investors co-investing via INVL BSGF Co-Invest Fund II.

The INVL Baltic Sea Growth Fund, with a size of EUR 165 million, is a closed-end private equity fund for professional investors. To date the fund has invested in and developed industry leaders such as Eco Baltia, InMedica, Eglės Sanatorija and Galinta. As of the end of 2023, transactions completed by the INVL Baltic Sea Growth Fund had a net internal rate of return of 26% and a cash-on-cash multiple of 1.9 times.

INVL Asset Management is now fundraising for INVL Baltic Sea Growth Fund’s successor fund INVL Private Equity Fund II targeting the size of EUR 250 million.