Livonia acquires stake in Freor

Nicole Tovstiga
08 August 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Baltic-focused GP Livonia Partners has acquired a 33% stake in Vilnius-based refrigeration equipment manufacturer Freor from Accession Mezzanine Capital.

The deal comes after establishing a long-standing relationship with the company's founder over five years, Livonia founding partner Mindaugas Utkevičius told Unquote.

Freor focuses on energy-efficient and environmentally friendly commercial refrigeration technology, which made it an attractive investment for Livonia. By 2030, current refrigeration technology will be phased out in European markets, with the industry focusing on sustainable refrigeration, according to Utkevičius. In addition, supermarkets are increasing their refrigeration sections as more shoppers buy ready-made and refrigerated food products.

The next step is to expand Freor's manufacturing capacity with a new production facility in Vilnius, Utkevičius added.

Freor is the fifth investment for Livonia Partners Fund I, following the GP's strategy to invest in medium-sized companies in the Baltic countries that are professionally managed and growing.

Last year, the fund invested in IT network and security firm Santa Monica Networks in Latvia and Lithuania, as well as in CGates, a Lithuanian provider of cable television and internet services. It acquired Ha Serv, an Estonia-based thermowood and sauna materials manufacturer, and Hortes, Estonia's home and gardening retail brand, in 2016.

Previous funding
Mezzanine Management invested a combination of equity and mezzanine debt in 2015 through its Accession Mezzanine Capital III fund, taking a minority stake in the company. The vehicle invested €7m in Freor.

Company
Founded in 2000 and headquartered in Vilnius, Freor is a manufacturer of commercial refrigeration equipment for the food retail sector. The company provides refrigeration cabinets, multidecks and freezers. Freor exports around 90% of its manufactured refrigeration equipment, with western Europe and the Nordic region its largest markets. It is also present in the Middle East, Asia and South Africa. It operates production facilities in Vilnius and Belarus, and reported revenues of €36m in 2017.

People
Livonia Partners – Mindaugas Utkevičius (founding partner).
Freor – Rytis Bernatonis (CEO).
Mezzanine Management – Piotr Sadowski (senior investment director).