Silhouette of engineer and construction team working at site over blurred background sunset pastel for industry background with Light fair.

INVL Baltic Sea Growth Fund acquires majority stake in Montuotojas

INVL Baltic Sea Growth Fund, the largest private equity investment fund in the Baltic States, today announces the acquisition (86% majority stake) of Lithuanian metal processing and industrial construction company, Montuotojas AB. This deal is completed through INVL Baltic Sea Growth Fund subsidiaries BSGF Fortis and Montuja respectively for an undisclosed amount.

In 2018, Montuotojas recorded revenues of EUR 33.5 million with the company employing around 700 people that undertake c.100-120 wide-ranging projects per annum. Montuotojas’ clients include companies Lifosa, Amilina, Bega, Klaipedos nafta, Achema, Lietpak, Litesko, Orlen Lietuva, and others.

It is planned that Rimvydas Ramanauskas will held position as CEO and member of the management board of Montuotojas after change of shareholders. R. Ramanauskas held mostly managerial positions over the past 10 years. “I am very excited to be given this opportunity to lead and transfer my knowledge to a company with such a well-respected reputation as Montuotojas. I believe strongly in its future potential and I am excited for this new chapter of growth to begin,” said Rimvydas Ramanauskas.

“We plan to expand Montuotojas’ activities in Lithuania and also internationalise, entering foreign markets while capitalising on the impressive engineering potential of the company,” said Vidas Venckus, Partner at INVL Baltic Sea Growth Fund.

“The current senior team at Montuotojas is proud to have given between 30 to 40 years of service to this great company and are happy that generational change will allow the company to become even stronger. We have chosen one of the strongest investors in the Baltic region and are very confident that INVL Baltic Sea Growth Fund will be able to actively support the company as it expands into new geographies and strengthens its current position,” – said Alfonsas Jaras, current CEO of Montuotojas.

It is intended to propose Alvydas Banys, Nerijus Drobavičius and Vytautas Plunksnis, who are the partners at INVL Baltic Sea Growth Fund, to the supervisory board of Montuotojas. It is planned that current managers of Montuotojas will continue to work as consultants for some time and they will ensure a smooth transfer of work.

INVL Baltic Sea Growth Fund, founded by INVL Asset Management, one of the leading asset management companies in Lithuania, aims to invest in mid-sized, attractive risk-and-return companies by providing them with capital for future growth. The fund targets major or significant minority stakes in businesses and also actively participates in the management of investments and long-term increase in capital value. Investment in one company usually is between EUR 10 to 30 million.

In February 2019, INVL Baltic Sea Growth Fund announced a first close of EUR 106 million. The European Investment Fund (EIF), a part of the European Investment Bank (EIB), has become a major investor for the fund. The EIF has committed to invest up to EUR 30 million with support of the European Fund for Strategic Investments (EFSI), a key element of the Investment Plan for Europe (or the Junker Plan).

The EIF commits to allocate resources from the Baltic Innovation Fund, the “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. Initiative aims to increase capital investment in small and medium-sized enterprises in the Baltic States with high growth potential.

INVL Asset Management is part of the Invalda INVL, one of the leading asset management groups in the Baltic countries. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments. Over 200,000 clients in Lithuania and Latvia and international investors have entrusted them with more than EUR 850 million of assets.