Pehart Achieves Major Milestone with Sale to INVL Baltic Sea Growth
Deal News | Dec 10, 2024 | Abris Capital Partners
Abris Capital Partners, an ESG-focused private equity firm, has signed an agreement to sell the Pehart Group, a leading Romanian tissue paper producer, to INVL Baltic Sea Growth Fund. Pehart, renowned for its household and industrial paper products, operates in 19 countries across Southeastern Europe. Abris has successfully realigned Pehart's focus from production to a sales-and-marketing-centric approach, resulting in substantial growth in both revenues and EBITDA. The transaction, subject to regulatory approvals, is expected to be completed in the first quarter of 2025. The sale marks the end of a fruitful partnership between Abris and Pehart and aligns with Abris’ strategy to bolster high-potential companies. Moving forward, Pehart anticipates leveraging INVL's resources to enhance its market position while maintaining its commitment to sustainable practices.
Sectors
- Private Equity
- Consumer Goods
- Manufacturing
Geography
- Romania – Pehart is based in Romania and is the country's leading tissue paper manufacturer.
- Baltics – INVL Baltic Sea Growth, the acquiring private equity fund, is a key player in the Baltic region.
- Southeastern Europe – Pehart distributes its products across 19 countries in SEE, indicating its geographical market presence.
Industry
- Private Equity – The sale of Pehart by Abris Capital Partners is a major transaction within the private equity sector, highlighting the lifecycle of investment and divestment by PE firms.
- Consumer Goods – Pehart operates within the consumer goods sector, specifically producing paper products such as toilet paper and other hygiene products, which are everyday consumer staples.
- Manufacturing – Pehart's operations involve the manufacturing of tissue paper products, indicating its place in the manufacturing industry.
Financials
- EUR 168 million – The revenue generated by Pehart in 2023.
- 2.5x increase in revenues – The growth in Pehart's revenues since Abris's investment.
- 3.0x increase in EBITDA – The improvement in Pehart's EBITDA under Abris's ownership.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Abris Capital Partners | Selling Company | Company | A Polish private equity firm specializing in ESG transformations and B Corp initiatives. |
| Pehart Group | Target Company | Company | The largest vertically integrated consumer tissue paper producer in Romania and a major player in SEE. |
| INVL Baltic Sea Growth Fund | Bidding Company | Company | A leading private equity fund in the Baltic region, acquiring Pehart for strategic growth opportunities. |
| Adrian Stanculescu | Commentator | Person | Partner and Head of Romania at Abris Capital Partners, comments on the success of the Pehart sale. |
| Gabriel Stanciu | CEO, Pehart | Person | CEO of Pehart, expressing optimism for the partnership with INVL Baltic Sea Growth Fund. |