A major player in the private equity market in the Baltic region, the INVL Baltic Sea Growth Fund, announced on Monday, July 14, that it has completed the investment in Pehart Group, a leading producer of household and industrial paper products in Romania, a deal valued at EUR 150 million.
With a 187-year tradition, Pehart Group is one of the largest paper manufacturers in Southeast Europe with a portfolio ranging from toilet paper, paper towels, napkins, and other hygiene paper products to jumbo rolls, used in the converting process into paper products for household and industrial use.
In 2024, the Pehart Group generated revenues of EUR 165 million and employed nearly 550 people across its companies, after diversifying its products.
“We are excited to back the Pehart Group management team in bringing the company to the next level, and we will support significant investments into expansion of Pehart’s manufacturing capacities and add-on acquisitions in the region, strengthening Pehart Group’s market leadership and driving its next phase of growth,” said Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund.
Pufina, one of the most popular tissue paper brands in Romania, Alint, Altessa, and SOVIO, the Away-from-Home products division, are part of the Pehart Group portfolio.
”We see this partnership as an opportunity to accelerate our development plans and strengthen Pehart Group’s position as a regional leader in the paper products industry. We will continue to invest in cutting-edge technologies, diversify our product portfolio, and expand our presence in international markets,” added Gabriel Stanciu, CEO of Pehart Group.
Equity for the deal was provided by the INVL Baltic Sea Growth Fund and some of its investors, co-investing via INVL BSGF Co-Invest Fund II. The International Finance Corporation, a member of the World Bank Group, has led the syndication of over EUR 150 million financing package for Pehart Group.
“Finalizing the acquisition of Pehart Group marks a key milestone for the INVL Baltic Sea Growth Fund, completing a value-driven portfolio of ten companies across the Baltics, Poland, and Romania, with one already successfully exited,” commented Deimantė Korsakaitė, Managing Partner at INVL Private Equity Fund II and INVL Baltic Sea Growth Fund.
(Photo source: INVL Baltic Sea Growth Fund)
