INVL Baltic Sea Growth Fund signs agreement for the acquisition of Galinta Group

INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, today announces the signing of an agreement for the acquisition of 100% of the shares of Galinta Group. Galinta Group is one of the largest producers of buckwheat in Europe as well as one of the leading producers and traders of flakes, rice, and other groats in the Baltic region.

The transaction is expected to be completed at the beginning of 2024 subject to permission from the Competition Council of the Republic of Lithuania.

In 2022, Galinta Group generated ~EUR 38.5 million of revenues. Buckwheat production capacity reached 1,000-1,500 tons per month, packaging – around 8 million units per month. Galinta Group currently employs more than 100 people in Lithuania.

Marijus Mazuch, a shareholder of the Galinta group of companies, commented:

“Galinta Group has been successfully operating in the market for more than two decades and holds a significant position for the production of groats and flakes as well as commercial activities across the Baltics and Europe more broadly. I strongly believe this transfer to professional investors will now allow the group to continue growing and further strengthen its already impressive market.”

Deimantė Korsakaitė, Managing Partner of INVL Baltic Sea Growth Fund, commented:

“We believe that the plant-based food sector has strong potential for growth and Lithuania demonstrates a competitive advantage in the field of food processing, especially in the grain segment. Therefore, it has represented one of the strategic sectors we have looked at for potential investment since the fund’s establishment. We are glad to be entrusted with the further growth and development of this successful family-built business, which in more than twenty-five years has become the undisputed market leader with its brands are well-known amongst the buyer community. The business has the potential for rapid growth by both increasing volumes in existing markets and expanding into the new ones as well as the launch of new product segments.”

“We strive to grow regional leaders and provide consumers with high-quality and healthy food at affordable prices thus we are actively working with other acquisitions in this area as economies of scale and possible synergies are the essential condition for ensuring business competitiveness internationally, modern and efficient production, and the development and introduction of new products into the markets.” 

D. Korsakaitė concluded:

“Sustainability is gaining more and more leverage in society today. Therefore, post-acquisition we will not only target product development but also strengthen sustainability-related initiatives in the company’s day-to-day activities. We strongly believe that incorporating sustainability initiatives into the business model encourages management to follow a path of innovation and adopt sustainable yet effective business solutions.”

Galinta Group will be the 9th portfolio investment for the INVL Baltic Sea Growth Fund. The launch of the INVL Private Equity Fund II has now been formally actioned, with the target of attracting EUR 300 million from investors.

Galinta was advised by integrated business services group Lewben. The legal advisors of INVL Baltic Sea Growth Fund were law firm “TGS Baltic” and its financial advisors were EY.

About INVL Baltic Sea Growth Fund

With a size of EUR 165 million, the INVL Baltic Sea Growth Fund the leading equity fund in the Baltics. The European Investment Fund (“EIF”) is its anchor investor.

The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or ‘Junker Plan’) whilst also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics.

The fund seeks to assemble a diversified portfolio of companies, targeting majority or significant minority stakes through investments ranging from of EUR 10 million to EUR 30 million. These companies must demonstrate high growth potential and an ability to succeed in conditions of increasing global competition and market volatility.

The fund is focused on the Baltic countries and neighbouring regions including Poland, the Nordics, and Central Europe. The fund has invested in eight companies to date, focusing on sectors including healthcare, medical rehabilitation, civil engineering, plastic recycling, environmental resource management, veterinary services, and the manufacturing of cosmetics and hygiene products.

The fund is managed by INVL, the leading Baltic investment management and life insurance group. The group’s companies manage pension and mutual funds, life insurance directions, individual portfolios, private equity as well as other alternative investments. More than 300,000 clients in Lithuania, Latvia and Estonia plus international investors have entrusted the group with the management of over EUR 2 billion of assets. With a track record spanning 30 years, the group has strong expertise and experience in managing private equity assets and building true market players that are leaders in their respective fields in the Baltic countries and across Central and Eastern Europe.

Important information

This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment units of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.

When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the rules, prospectus and other documents of the respective collective investment undertaking.

Units of this collective investment undertaking, mentioned in this press release may only be distributed to professional investors (clients) as defined in the Law on Markets in Financial Instruments of the Republic of Lithuania, as amended and supplemented from time to time, and may not be distributed and transferred to any other clients.