Market
03.09.2015
By mergers.lv
iStockphoto

In early spring we were looking back at a very disappointing first quarter if measured by the M&A activity (the full note can be found here). Almost immediately after it was published the quiet period ended and things started accelerating in the market. Some pressure and frenzy at that time of year is not untypical as deal-makers try to wrap the things up before the summer season starts. But this year the M&A market continued to gather momentum also during the summer months. Apparently, quite a few people preferred real work to working on their suntan!

What kind of deals have we seen over the months of July and August? Most of the transactions announced can be attributed to either of the two broadly defined categories – acquisitions made by strategic investors, or transactions involving private equity and financial sponsors.

For strategic investors it started off with the acquisition of Dobele-based producer of construction chemicals, Tenachem, by the Belgian Souda which operates in a similar industry. Given that we do not see Belgian investors in the Baltics all that often this is quite a remarkable transaction. In another deal, Vienna Insurance Group AG, which already had quite a significant presence in the Baltic markets, acquired Baltikums AAS, a Latvian non-life insurer. And Estonian UP Invest, the shareholder of Baltic News Service, acquired LETA, a Latvian news agency, thus solidifying its position in the media market.

Private equity has been and is considered to be one of the key drivers of deal-making activity in the Baltics in the years to come. True to this, BaltCap, probably the best-known name in the Baltic private equity space, acquired BPT Real Estate, a real estate investment management company active in the Baltics and in Poland. Although technically the target company is headquartered in Tallinn and the main spokesman about the deal comes from the BaltCap Lithuanian office we nevertheless believe that this transaction relates to Latvia as much as to the neighbour states. In another surprise deal the European Bank for Reconstruction and Development (EBRD), which has not been that active in the region lately, apart from the financial sector, announced its investment of EUR 10 million in exchange for a 30% stake in Eco Baltia AS, a waste management company.

The new investments notwithstanding we have seen another silent exit whereby BaltCap sold its 48% of shares in VLT SIA, a producer of moulded fibre packaging products (namely, egg trays and egg boxes), back to the company management. (Given our special interest in the private equity market we might look into this exit transaction more in detail in a separate note)

Any transaction, irrespective of size, where a Latvian company makes an acquisition abroad automatically becomes noteworthy. This very much applies to the acquisition of DL Distributors, a distributor of DELL products in Estonia, by the Latvian ELKO Group, even despite the fact that the transaction was kept low profile and not too much detail was offered.

Practically everyone is back in their offices starting from this week. Provided that the momentum keeps going we might be looking forward to quite an exciting tail end of the year 2015.

© mergers.lv

< Newer
Walking On Egg Shells
Older >
Meanwhile On The Other Coast...
21 Comments
To comment please Log in or Register at Mergers.lv
Or Log In with:
We welcome thoughtful comments from readers. Please comply with our guidelines.
26-06-2022, 14:47
jihej96662]
wrote: This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. Arbeitsplatzvermietung
25-06-2022, 14:38
jihej96662]
wrote: I have a hard time describing my thoughts on content, but I really felt I should here. Your article is really great. I like the way you wrote this information. รถตู้เชียงใหม่
24-06-2022, 09:02
jihej96662]
wrote: This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. groza69club
23-06-2022, 11:43
jihej96662]
wrote: This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: รถตู้เช่าน่าน
20-06-2022, 10:13
jihej96662]
wrote: This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: Computer Software Prepackaged
15-06-2022, 15:22
robinjack
wrote: Thank you for sharing excellent information. Your website is very cool. I am impressed by the info that you?ve on this website. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. tree trimming cost
15-06-2022, 12:47
jihej96662]
wrote: This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. Massage
12-06-2022, 14:09
jihej96662]
wrote: This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: buenas-fotografias-con-el-celular
06-06-2022, 13:39
jihej96662]
wrote: I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... Bidvaluable fashion jewellery
05-06-2022, 10:04
jihej96662]
wrote: I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... high quality
05-06-2022, 10:03
jihej96662]
wrote: I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... high quality
04-06-2022, 10:02
jihej96662]
wrote: I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... nj wedding videographer
01-06-2022, 12:50
robinjack
wrote: This web site is my inspiration , rattling superb design and style and perfect written content . job scheduling software
13-04-2022, 16:09
robinjack
wrote: I haven’t checked in here for some time as I thought it was getting boring, but the last few posts are great quality so I guess I’ll add you back to my daily bloglist. You deserve it friend Party de Noel
09-10-2021, 15:58
Muhammad Ali
wrote: I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business. 화이트먹튀
06-10-2021, 15:43
hasnain khatri
wrote: I think that thanks for the valuabe information and insights you have so provided here. 먹튀
04-10-2021, 10:31
Muhammad Ali
wrote: i love reading this article so beautiful!!great job! nearest brunch
03-10-2021, 14:15
Muhammad Ali
wrote: This is a truly good site post. Not too many people would actually, the way you just did. I am really impressed that there is so much information about this subject that have been uncovered and you’ve done your best, with so much class. If wanted to know more about green smoke reviews, than by all means come in and check our stuff. www.locationsnearmenow.net
02-10-2021, 13:29
kuzey
wrote: Pretty nice post. I just stumbled upon your weblog and wanted to say that I have really enjoyed browsing your blog posts. After all I’ll be subscribing to your feed and I hope you write again soon! 먹튀검증사이트
27-09-2021, 16:26
hasnain khatri
wrote: This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer. I’ll be back day in and day for further new updates. surgical face mask
10-01-2018, 16:43
Edgars Skrinda
wrote: Biznesa plāns, lai saņemtu aizdevums biznesam https://www.cityfinances.lv/biznesa-plans/
Subscribe
Sign up to receive an extract from
our latest M&A Intelligence Report
Sign up
more updates...