INVL Baltic Sea Growth Fund, a leading private equity investment fund in the Baltic region, has completed the acquisition of state-of-the-art medical centers in Birštonas, Nemunas, as well as the largest rehabilitation and post-acute care medical center in the Baltics, Iglesias. The Sanatoria transactions closed following regulatory approval from the Lithuanian Competition Council.
Nerijus Drobavicis, Partner at INVL Baltic Sea Growth Fund commented:
“We will continue to invest in this high-performing sector and look forward to further strengthening the leadership position in the Baltic states, created by the company’s shareholders, managers and employees. The health care sector in Lithuania and the entire Baltic region, as well as in other EU countries, has made society more focused and healthy. It has great potential for growth as it puts more emphasis on rehabilitation and improving the well-being of individuals. Due to its amazing quality provision and wide range of healthcare services, Eglės Sanatorija has a brand name.
The transaction was carried out by the Fund, the Fund’s co-investors and debt financing. INVL Baltic Sea Growth Fund together with other investors will now own 100% of the shares of Namita, which manages the medical center Nemunas. Namita also acquired 100% of the shares of Eglės Sanatorija.
Vika Buktcu, Chairman of the Board of Eglės Sanatorija, added:
“After decades of growth and development of our business, it is very important for us to have professional investors with strong operational experience in the healthcare sector in Lithuania and internationally. Therefore, we are confident that this new direction will help modernize, renew and improve the customer experience, and continue the success of Eglės Sanatorija in the future.” .
According to Arturas Salda, CEO of Egles Sanatoria, The wellness center is already ranked among the best European spas and properties. In addition, the onboarding of a new experienced investor is sure to boost business growth in Lithuania and beyond. This strategic approach enables the expansion of quality professional services that meet the ever-changing needs of clients and market demands.
INVL Baltic Sea Growth Fund Partner Vytautas Plunksnis concluded:
“This year, both the fund and its portfolio companies have made acquisitions and expanded into new markets. After investing in rehabilitation and residential treatment centers, the fund’s portfolio already includes seven companies in which the fund has invested more than 100 million euros. Planned investments in 2023, after that We will start raising money for the new fund.
In the year Established in 1972, Iglesias Sanatorija offers post-acute and rehabilitation treatment and medical rehabilitation and health services to Lithuanian residents and foreign guests in the Druskinkai and Birstonas resorts. These places are famous for mineral water springs among other attractions. The facility in Druskinkai is currently the largest not only in Lithuania, but also in Northern Europe. It can accommodate up to 1,300 guests at the same time, up to 730 guests from the premises in Birshtonas. Guests are offered a variety of medical and wellness treatments, from traditional mud and mineral water practices to innovative physiotherapy and kinesitherapy procedures.
Before the outbreak, foreign tourists accounted for a significant percentage of all customers for Eglės Sanatorija. A large part of the sanatorium’s income is made up of commercial revenues, and some services are subsidized by the regional health insurance fund. Functional diagnosis and rehabilitation center Nemunas and Iglesias Sanatoria last year had a total revenue of 23.4 million euros, and both companies employ more than 700 people. Consolidated revenue for 2022 is projected to exceed 30 million euros.
It is planned to invest more in the projects to increase the energy efficiency of the premises as well as to adapt the renovated premises to provide new procedures and services.
Sorainen acted as the fund’s legal advisor and the law firm WALLESS represented the sellers for this transaction. The buyer was represented in the transaction by financial advisory firm Deloitte.
INVL Baltic Sea Development Fund
With a volume of EUR 165 million, the INVL Baltic Sea Growth Fund is one of the largest private equity funds in the Baltics. The European Investment Fund (“EIF”) is the anchor investor.
The EIF, which is part of the European Investment Bank, committed 30 million euros with the support of the European Fund for Strategic Investments (a key part of the European Investment Plan or the Juncker Plan) and from E. The Baltic Innovation Fund, a “fund of funds” initiative developed in partnership with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth small and medium-sized enterprises in the Baltics.
The fund seeks to accumulate a portfolio of diversified companies targeting majority or significant minority stakes with investments ranging from €10 million to €30 million. These companies must demonstrate high growth potential and the ability to succeed in conditions that increase global competition and market dynamics.
The fund focuses on the Baltic states and neighboring regions, Poland, the Nordics and Central Europe. The fund has invested in seven companies, including healthcare, medical rehabilitation, civil engineering, environmental management (plastic recycling and waste management), veterinary services, and cosmetics and hygiene products.
The fund is managed by INVL, a leading Baltic investment management and life insurance group. The group’s companies manage pension and mutual funds, life insurance portfolios, individual portfolios, private equity and other alternative investments. More than 300,000 clients and international investors in Lithuania, Latvia and Estonia have entrusted the group with the management of more than EUR 1.75 billion in assets. With a 30-year track record, the team has strong expertise and experience in managing private equity assets and building real market players who are leaders in their respective fields in the Baltic States and Central and Eastern Europe.
For more information contact:
Nerijus Drobavičius, partner of the INVL Baltic Sea Development Fund
E-mail: [email protected]