TGS Baltic Assisted INVL Baltic Sea Growth Fund With Its Acquisition of Latvian Cosmetics Producer B2Y.
On February 22 2022, INVL Baltic Sea Growth Fund (“the Fund”), one of the largest private equity investment funds in the Baltic region, completed the acquisition of a 100 percent stake in B2Y, a growing personal care products and cosmetics producer headquartered in Latvia. B2Y will continue to be led by its founder and CEO Rita Lagzdiņa.
“We intend to grow B2Y organically and will seek consolidation opportunities in the sector“, says Vytautas Plunksnis, partner at INVL Baltic Sea Growth Fund.
B2Y develops and manufactures natural skincare, oral and hair care, bath and shower products. The company distributes its products under its „Bio2You“ brand and also produces under private label contracts. Its head office and manufacturing facilities are located in Riga, Latvia. It increased sales by 36 percent to EUR 1.5 million in 2021, and it employs over 20 employees.
Rita Lagzdiņa, Founder and CEO of SIA B2Y, commented: “I envision B2Y as one of the leading skincare producers in the region, and to achieve this goal we agreed to partner with INVL Baltic Sea Growth Fund. B2Y has significant growth opportunities, and now we have a strong backer to support growth to a new level.”
Deimantė Korsakaitė, Executive Partner of the Fund, commented: “B2Y becomes our fifth portfolio company. We enter the company envisioning significant growth of SIA B2Y in this industry. The Fund recognizes that small businesses are one of the key parts of the global economy, and as a manager of both, private and public money aims to support entrepreneurship and growth of SMEs.”
About INVL Baltic Sea Growth Fund
INVL Baltic Sea Growth Fund with its total size of €165m is one of the largest private equity funds in the Baltics with the European Investment Fund (“EIF”) acting as its anchor investor. EIF has committed €30m with the support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the ‘Junker Plan’), as well as allocating resources from the Baltic Innovation Fund, the “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia, and Estonia. This aims to increase capital investment in high growth potential small and medium-sized enterprises in the Baltic States.
The Fund seeks to assemble a diversified portfolio of companies, targeting majority or significant minority stake deals and writing tickets of €10m to €30m, that showcase high growth potential and the ability to compete on a truly global basis. The organisation is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia, and Central Europe specifically. So far it has invested in four companies within the healthcare, civil engineering, and environment management (plastic recycling and waste management) sectors.
The Fund is managed by one of Lithuania’s leading asset management companies INVL Asset Management, which is part of Invalda INVL group. The group companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments. Over 250,000 clients in Lithuania and Latvia and international investors at the end of 2021 have entrusted the group with more than €1.5 billion of assets under management. Active since 1991 and with a solid track record, Invalda INVL boasts 30 years’ worth of experience in managing private equity assets in the Baltic countries and CEE landscape while developing companies into best-in-class market leaders.
TGS Baltic
TGS Baltic provided INVL Baltic Sea Growth Fund with all the necessary legal support to enable the transaction, including carrying out the legal due diligence of the target and assisting with all the transaction documents.
Aurimas Pauliukevičius, and Paulius Dabulskis from TGS Baltic Lithuania office assisted concerning Lithuanian jurisdiction. Andra Rubene, Kaspars Treilibs, Rūdolfs Vilsons, Toms Tīdemanis, Zane Skļamina, Alīna Lepere, and Jānis Kāršenieks from TGS Baltic Latvia office assisted concerning Latvian jurisdiction.
For more detailed information please refer to https://www.invaldainvl.com/en/regulated-information/invl-baltic-sea-growth-fund-acquires-latvian-cosmetics-producer-b2y-2/
