LitCapital sells Baltik Vairas to KJK

KJK will wholly acquire the parent company of Baltik Vairas, Baltic Bicycle Trade. The firm used its KJK Fund III vehicle, which held a first close on €138m in September 2018.  

This is the fourth and largest exit from LitCapital I KŪB fund. The fund closed on €25m in 2010 and typically invests €1-3m in Lithuanian companies.

Other strategic and financial investors showed interest in the process, according to a statement.

During LitCapital's holding period, the company says it transformed its processes and culture, and built up its international sales, customer support, purchasing and supply chain management, finance department and human resources. The company's revenues reached more than €70m and EBITDA increased by more than four times during the holding period.

The management team will continue to lead the company following the transaction.

Previous funding
LitCapital and co-investor Asgaard invested in Baltic Bicycle Trade in 2013. That company acquired Baltik Vairas after one of its venture partners withdrew from the company. In March 2013, LitCapital and Panther International together invested $1.8m in the company, though Panther International sold its stake in November 2013.

Company
Baltik Varias is a bicycle and e-bikes manufacturer based in Šiauliai, Lithuania. Founded in 1948, the company exports 500,000 bicycles per year across Europe. The company has 320 permanent employees in the factory, although this number can expand to 600 during peak seasons.

People
LitCapital – Šarūnas Šiugžda (founder, managing partner).
Baltik Vairas – Niels Peter Pretzmann (board chair).

Advisers
Equity – EY (financial due diligence); Cobalt (legal).
Vendor – Swedbank Investment Banking Lithuania (corporate finance); TGS Baltic (legal).

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• Cobalt Capital
• EY (Ernst & Young)
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