BaltCap sells Ecoservice to PE-backed Eco Baltia

Eliza Punshi
18 May 2021

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Private equity firm BaltCap has agreed to sell Lithuania-based waste management group Ecoservice to INVL-backed company Eco Baltia.

Eco Baltia, backed by INVL and the European Bank for Reconstruction and Development (EBRD), will acquire at least an 85% stake in the company, while the remaining 15% will be retained by the company's CEO.

Mergermarket reported in September last year that BaltCap had mandated Superia to advise on its exit from both Ecoservice and Estonian waste-management company EKT.

The deal is the first add-on since INVL invested in Eco Baltia in May 2020 via INVL Baltic Sea Growth Fund, and is being funded through equity and debt from Eco Baltia. INVL aims to grow the company both organically and through acquisitions, focusing specifically on PET recycling and waste management segments.

BaltCap's exit comes seven years after the GP acquired a 75% stake in Ecoservice for €16.4m, according to Mergermarket. In 2015, it bought out the remaining 25% for €3.5m.

During the seven-year holding period, the GP said in a statement, the company modernised its vehicle fleet, extended the range and geography of services through five add-on acquisitions, and strengthened its position in Lithuania. According to Unquote Data, the company's revenues increased from €16m in 2013 to €35m in 2020, and the number of staff at the company increased from 260 to 900.

The deal is subject to regulatory approval.

Company
Founded in 1995 and based in Vilnius, Ecoservice consists of several companies operating in sectors including household waste management, recycling, and construction waste collection, as well as other environmental services.

The company employs 900 employees in Lithuania and last year had revenues of €35m and EBITDA of €6.2m.

People
Ecoservice - Saulius Budrevičius (CEO, co-owner).
INVL – Vytautas Plunksnis (partner).
BaltCap - Šarunas Alekna (partner).

Advisers
Eco Baltia – Sorainen (legal); EY (financial due diligence, tax).
Vendor – TGS Baltic (legal); PwC (financial due diligence, tax); Superia (M&A).