INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, has announced the signing of an agreement for the acquisition of 100% of the shares of Galinta Group. Galinta Group is one of the largest producers of buckwheat in Europe as well as one of the leading producers and traders of flakes, rice, and other groats in the Baltic region.

The transaction is expected to be completed at the beginning of 2024 subject to permission from the Competition Council of the Republic of Lithuania.

In 2022, Galinta Group generated ~EUR 38.5 million of revenues. Buckwheat production capacity reached 1,000-1,500 tons per month, packaging – around 8 million units per month. Galinta Group currently employs more than 100 people in Lithuania.

Marijus Mazuch, a shareholder of the Galinta group of companies, commented: “Galinta Group has been successfully operating in the market for more than two decades and holds a significant position for the production of groats and flakes as well as commercial activities across the Baltics and Europe more broadly. I strongly believe this transfer to professional investors will now allow the group to continue growing and further strengthen its already impressive market.”

Deimantė Korsakaitė, Managing Partner of INVL Baltic Sea Growth Fund, commented: “We believe that the plant-based food sector has strong potential for growth and Lithuania demonstrates a competitive advantage in the field of food processing, especially in the grain segment. Therefore, it has represented one of the strategic sectors we have looked at for potential investment since the fund’s establishment. We are glad to be entrusted with the further growth and development of this successful family-built business, which in more than twenty-five years has become the undisputed market leader with its brands are well-known amongst the buyer community. The business has the potential for rapid growth by both increasing volumes in existing markets and expanding into the new ones as well as the launch of new product segments.”

“We strive to grow regional leaders and provide consumers with high-quality and healthy food at affordable prices thus we are actively working with other acquisitions in this area as economies of scale and possible synergies are the essential condition for ensuring business competitiveness internationally, modern and efficient production, and the development and introduction of new products into the markets.”

D. Korsakaitė concluded: “Sustainability is gaining more and more leverage in society today.Therefore, post-acquisition we will not only target product development but also strengthen sustainability-related initiatives in the company’s day-to-day activities. We strongly believe that incorporating sustainability initiatives into the business model encourages management to follow a path of innovation and adopt sustainable yet effective business solutions.”

Galinta Group will be the 9th portfolio investment for the INVL Baltic Sea Growth Fund. The launch of the INVL Private Equity Fund II has now been formally actioned, with the target of attracting EUR 300 million from investors.

Galinta was advised by integrated business services group Lewben. The legal advisors of INVL Baltic Sea Growth Fund were law firm “TGS Baltic” and its financial advisors were EY.

Editorial contact:
Editor: Kiran Grewal kgrewal@kennedys.co.uk