INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, said that it signed an agreement to acquire shares in Romania’s paper products producer Pehart Group, owner of the oldest paper factory in the country 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.

“We are ready to leverage the growth opportunities and enhance our market position together with our new partner,” said Gabriel Stanciu, CEO of Pehart Group.

“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,” stated, in turn, Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund.

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 Pehart Group is one of the largest paper manufacturers in Southeast Europe. The company is present with its household and industrial products in 19 countries in Central, Eastern, and Southern Europe. In 2023, the group generated revenues of EUR 168 million and employed nearly 550 people across its companies.

Pufina, one of the most popular tissue paper brands, Alint, Altessa, and SOVIO, the AfH products division, are part of the Pehart Group portfolio. The company also produces jumbo rolls, giant rolls of paper used in the converting process into paper products for household and industrial use. 

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.

Founded in 2007, Abris Capital Partners is a leading independent private equity fund focusing on mid-market opportunities in Central European countries. 

With an investment capital of approximately EUR 1.3 billion, Abris has a long-term investment horizon and operates regional teams in Warsaw and Bucharest.

irina.marica@romania-insider.com

(Photo source: the company)