LitCapital sells Putoksnis stake to chairman Stulpinas

Mikkel Stern-Peltz
21 January 2016

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Lithuanian GP LitCapital has sold its 33.3% stake in struggling polyethylene terephthalate (PET) container manufacturer Putoksnis to the company's chair and majority shareholder Alvydas Stulpinas.

The share acquisition was made through Stulpinas's 3 Rill holding company and saw the businessman gain full control of the company. Ahead of LitCapital's exit, Stulpinas's personal shareholding was 19.9%, while 3 Rill held a 46.8% stake in Putoksnis.

Lithuania's competiton authority approved the deal in December.

Putoksnis has been in financial difficulties in recent years, posting a €617,000 loss on €37.66m of revenues in 2014. Stulpinas said the company's underperformance was down to substantial errors made before the global financial crisis, including real estate investments.

Initial projections suggest Putoksnis will be in better financial shape for the 2015 financial year, with EBITDA of €2.8m from revenues of €35m. Earlier this year the company said it would launch a €3.3m project to grow sales by 20% without increasing costs, partly on the basis of a new lightweight bottle developed by Putoksnis.

Previous funding
LitCapital acquired a 33.3% stake in Putoksnis in June 2011 for €1.45m. Over the course of the GP's ownership it invested more than €4m in the company.

The investment was made through LitCapital's €25m 2010-vintage fund, raised under the Joint European Resources for Micro to Medium Enterprises initiative (Jeremie), focusing on Lithuanian SMEs. LitCapital typically invests €1-3m over an ownership period of four to six years.

Company
Putoksnis is a Lithuanian manufacturer of PET packaging founded in 1994.

Headquartered in Siauliai, the company employs 110 people and produces around 30,000 tonnes of PET packaging a year, most of which is used in the beverage production sector. Putoksnis's main export markets are Germany, Poland and Scandinavia.

People
LitCap – Sarunas Siugzda (founder, managing partner).
3 Rill – Alvydas Stulpinas (owner, chair of Putoksnis).

Advisers
Equity – Cobalt, Elijus Burgis, Eva Sudiko (Legal).
Vendor – Glimstedt, Andrius Ivanauskas (Legal).