Home Alternative Investments INVL Baltic Sea Growth Fund signs agreement to acquire

INVL Baltic Sea Growth Fund signs agreement to acquire

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INVL Baltic Sea Growth Fund, the leading private equity investment fund in the Baltic region, signed an agreement to acquire one of the most modern medical treatment centres in Birštonas, Nemunas as well as the largest rehabilitation and post-acute care treatment centres in the Baltics, Eglės Sanatorija.

 “We are delighted to sign this agreement and see very high growth potential in the health and well-being sector. The shareholders, management team and employees of Eglės Sanatorija have successfully created a leading company in Lithuania and the Baltic region which provides high quality services in the region. We believe this partnership will create increased value for Eglės Sanatorija’s current and future client base while also reinforcing its leadership position for rehabilitation care and post-acute treatment across the Baltic states”, says Nerijus Drobavičius, Partner at INVL Baltic Sea Growth Fund.

“It is extremely important to us, after many decades of growing and developing our business, that it will be acquired by professional investors having expertise in the healthcare sector in Lithuania and Internationally. We are confident that this new direction will help to modernise, innovate and improve the customer experience and will ensure that Eglės Sanatorija will continue to be successful in the future”, commented Vita Butkutė, Chairman of the Board at Eglės Sanatorija.

According to Artūras Salda, Chief Executive Officer at Eglės Sanatorija: “We have always prioritised investment into infrastructure and the quality of our service offering. This is the main reason why we are among the best rehabilitation and post-acute treatment centres in Europe today.”

“This agreement will undoubtedly help us to grow our business in Lithuania and Internationally. It will also help us to broaden our professional service offering to our clients for whom health and wellness are extremely important”, says the CEO of Eglės Sanatorija.

In terms of short term plans it is planned to invest into the renovation and repurpose of buildings. Not only will this increase the energy efficiency of the buildings, but it will also help to offer a number of new, innovative procedures. These planned investments will therefore help to ensure the delivery of higher quality services to clients.

Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund, commented: “The Covid-19 pandemic is the single most important health incident of the past decades that reminded to all of us the importance of well-being and disease prevention in the societies. Signing an agreement regarding investment in rehabilitation and post-acute care treatment centres comes as part of strengthening Fund’s commitment to deliver the financial performance in a sustainable way inter alia bringing positive impact to the society as a whole. Once closed this will become the sixth portfolio company of the Fund bringing its investment cycle in the second part.”

“Current behavioural patterns and the demographic situation in Lithuania and across the European Union (EU) demonstrate that the population is increasingly mature and as a result is paying more attention to its wellness, rehabilitation and daily health protection. Demand for these services will only increase in EU and the region. We will now focus on the adaption of our offerings to meet the changing needs and expectation of the clients,” says Nerijus Drobavičius, Partner at the Fund.

Eglės Sanatorija was founded in 1972 and provides rehabilitation, wellness procedures and medical services to Lithuanians and foreign clients in Druskininkai and Birštonas. Prior to the start of the Covid-19 pandemic, foreign visitors accounted for a significant percentage of its client base and revenue streams. The largest portion of revenues is commercial revenue (out of pocket expenses), although minor levels are funded through state health insurance system. Total sales of Eglės Sanatorija and Nemunas UAB was EUR 23.4 million in 2021, the Group employed over 700 employees. 

The acquisition’s completion is subject to regulatory approval from the Lithuanian Competition Council and will be financed as a combination of equity by the Fund and debt.

About INVL Baltic Sea Growth Fund

INVL Baltic Sea Growth Fund with its total size of €165mn is the leading private equity fund in the Baltics with the European Investment Fund (“EIF”) acting as its anchor investor.

The EIF has committed €30mn 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 €10mn to €30mn, that showcase high growth potential and the ability to compete on a truly global basis.

The Fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe specifically. The Fund so far has invested in five companies within the healthcare, civil engineering, environment management (plastic recycling and waste management) and cosmetics and hygiene products manufacturing sectors.

The Fund is managed by one of Lithuania’s leading asset management companies INVL Asset Management, which is part of the Invalda INVL group. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments. Over 260,000 clients in Lithuania and Latvia and international investors have entrusted the group with more than €1.6bn 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.

Person authorized to provide additional information:
Deimantė Korsakaitė
the Executive Partner of the INVL Baltic Sea Growth Fund
E-mail: deimante.korsakaite@invl.com

 

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