The investment fund SARMIS Capital took over the majority stake in the sanitary paper manufacturer MG-Tec Industry, located in central Romania at Dej, according to Ziarul Financiar.

The transaction is one of the most important in this industry, considering the size of the investment made from scratch. The terms of the deal were not disclosed, but the target company invested EUR 150 mln in its productive equipment.

Founded in 2018, MG-Tec Industry is one of Romania's largest independent tissue paper producers, having demonstrated remarkable growth, achieving a turnover of EUR 58 mln in 2023. The company's diverse portfolio includes jumbo rolls, toilet paper, kitchen towels, tissues, and medical rolls (adult diapers and other personal hygiene products), marketed under both proprietary brands and private labels.

The sole associate of MG-Tec Industry is Vasile Hasmasan, but on the MG-Tec Industry website, several entrepreneurs appear as co-founders, including Dorin Mocan, the company's CEO.

This is the second important transaction in the sector, but also the second signed by an investment fund in the field, after the takeover of Romania's largest tissue paper producer Pehart Tec by Abris Capital Partners in 2015.

SARMIS Capital is an independent private equity fund manager established in 2019, focused on Romania and neighboring countries. The PE fund aims to invest EUR 10 mln or more per deal in majority equity stakes alongside owners/managers of entrepreneurial companies with high growth potential and good convergence play to Western European standards.

SARMIS Capital's first fund is backed by some of the most prestigious counterparties around the world, including endowments, development financial institutions, and high-net-worth individuals. It is supported, among others, by the JEREMIE Holding Fund Romania, an investment program between EIF and the Government of Romania, whereby EIF acts on behalf and for the ultimate benefit of the Government of Romania and invests reflows generated by operations implemented under JEREMIE Holding Fund Romania during the eligibility period 2007-2013.

iulian@romania-insider.com

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