The transaction is subject to regulatory clearance. BaltCap has already filed an application with the Competition Council and the deal is expected to be approved within 1-2 months, BaltCap informed on Monday.
This will be the first investment made by BaltCap Private Equity Fund III (BPEF III), a fund that had its first close of 126 mln euros earlier this year.
"The meat processing sector has always been active, however, not very attractive for investment due to overcapacity and a highly fragmented market. Some fundamental changes have taken place in the sector recently and now we see great potential both in export markets and in Lithuania, where Krekenavos Agrofirma is a leading player. Strong management team and market potential allow us to expect value growth and provide various opportunities for development," said Sarunas Alekna, partner of BPEF III.
The new fund will aim to make eight to 10 platform investments in the Baltic and Nordic countries with enterprise value of these companies typically being between 10 mln to 50 mln euros.
BPEF III was established in cooperation with the European Investment Fund (EIF), which invested through Baltic Innovation Fund 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF, the European Bank for Reconstruction and Development (EBRD), the Nordic Environment Finance Corporation (NEFCO), LHV pension funds, SEB pension funds from Estonia, Latvia and Lithuania, eQ Asset Management, and also family offices.
