The funding entities for the transaction are International Finance Corporation (IFC), Banca Transilvania and ING Bank Romania
INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, has completed the investment in Pehart Group, a leading producer of household and industrial paper products in Romania. The consortium of International Finance Corporation (IFC), Banca Transilvania and ING Bank Romania provided an over EUR 150 million financing package with a significant sustainable linked component to fund the transaction and further development of Pehart Group.
The transaction with Abris Capital Partners, the independent private equity fund that previously held Pehart Group, was completed on 11th July.
With a 187-year tradition, Pehart Group is one of the largest paper manufacturers in Southeast Europe with a portfolio ranging from toilet paper, paper towels, napkins, and other hygiene paper products to jumbo rolls, used in the converting process into paper products for household and industrial use. In 2024, Pehart Group succeeded in strengthening its leading position on the market through production efficiency and strategic investments. The focus on diversifying the product portfolio led to new launches, such as the SOVIO brand, targeting the Away-from-Home sector, as well as expansion into international markets. In 2024, the Pehart Group generated revenues of EUR 165 million and employed nearly 550 people across its companies.
Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund, said: “We are excited to back Pehart Group management team in bringing the company to the next level and we will support significant investments into expansion of Pehart’s manufacturing capacities and add-on acquisitions in the region strengthening Pehart Group’s market leadership and driving its next phase of growth.”
Gabriel Stanciu, CEO Pehart Group, commented: ”With the completion of the transaction with INVL Baltic Sea Growth Fund, we are honoured to join the leading private equity fund in the Baltics and benefit from its vision and expertise. We see this partnership as an opportunity to accelerate our development plans and strengthen Pehart Group’s position as a regional leader in the paper products industry. We will continue to invest in cutting edge technologies, diversify our product portfolio and expand our presence in international markets. We thank our previous partners, Abris Capital Partners, for their support in achieving our growth objectives in the past years. We look confidently to the future and are ready to capitalize on new opportunities together with INVL Baltic Sea Growth Fund.”
”The closing of this transaction is the culmination of a successful partnership with Pehart Group and its management team, whom we thank for the excellent collaboration over the past years. Together, we have succeeded in transforming Pehart into a strong regional player. We are proud of the value created over time and are confident that Pehart will continue to grow alongside its new partner. This transaction stands for Abris’ commitment to supporting ambitious management teams that can deliver sustainable performance in strategic sectors for the Central and Eastern European economy”, said Adrian Stănculescu, Partner and Head of Romania at Abris Capital Partners.
Equity for the deal was provided by the INVL Baltic Sea Growth Fund and some of its investors co-investing via INVL BSGF Co-Invest Fund II.
International Finance Corporation (IFC), a member of the World Bank Group, has led syndication of over EUR 150 million financing package for Pehart Group.
“This investment underscores IFC’s commitment to fostering sustainable economic growth while addressing Romania’s energy challenges”, said Marcelo Castellanos, IFC`s Senior Country Manager for Southeastern Europe. “By supporting Pehart, we are advancing the country’s green transition, promoting job creation in underserved regions, and demonstrating the key role of private capital in achieving climate goals.”
“This partnership reflects our ongoing commitment to support our clients’ strategic plans and to provide smart financial solutions, tailored to their needs in a strategic sector. Thus, we are proud to support Pehart in their plan for sustainable growth and to consolidate their position as a leading player on the regional market”, commented Cosmin Călin, Senior Executive Director of Large Corporate Clients, Structured Finance and Factoring at Banca Transilvania.
”ING has a long partnership with Abris in Romania, including Pehart. We are proud to continue supporting a local business in growing further and pursuing regional ambitions, as we are a solid supporter for the expansion of the Romanian economy. We thank Abris and Pehart for the partnership built along these years and wish many successes to Invalda INVL Group and Pehart going forward”, added Raluca Țintoiu, Head of Wholesale Banking and deputy CEO at ING Romania.
Deimantė Korsakaitė, Managing Partner at INVL Private Equity Fund II and INVL Baltic Sea Growth Fund, commented: “Finalizing the acquisition of Pehart Group marks a key milestone for the INVL Baltic Sea Growth Fund, completing a value-driven portfolio of ten companies across the Baltics, Poland and Romania, with one already successfully exited. With the launch of its successor INVL Private Equity Fund II earlier this year, which surpassed the target and reached EUR 305 million at first close, we are well-positioned to continue our investment strategy and supporting ambitious businesses across the Baltics, CEE region and the broader EU.”
Pehart Group is defined by continuous evolution, efficiency, respect for the planet’s resources and for the people who build its story every day. It continuously optimizes its products and services by creating a sustainable and equitable environment for a renewable future. Pufina, one of the most popular tissue paper brands in Romania, Alint, Altessa and SOVIO, the Away-from-Home products division, are part of the Pehart Group portfolio.
About the INVL Baltic Sea Growth Fund
With a fund size of EUR 165 million, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltics. Its anchor investor is the European Investment Fund (EIF), which is a part of the European Investment Bank, and committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) while also allocating resources from the Baltic Innovation Fund (a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia, to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics). The fund is managed by the leading asset management group in the Baltics Invalda INVL group, which companies manage or have under supervision over EUR 1.9 billion of assets.
About Pehart Group
With a 187-year tradition, the Pehart Group is one of the largest paper manufacturers in Southeast Europe. The company is present with its household and industrial products in 19 countries in Central, Eastern and Southern Europe (Poland, Czech Republic, Slovakia, Hungary, Croatia, Slovenia, Serbia, Bosnia, Herzegovina, Montenegro, Bulgaria, Macedonia, Ukraine, Greece, Cyprus, Israel, Rep. Moldova, Germany, Albania).
Pufina, one of the most popular tissue paper brands, Alint, Altessa and SOVIO, the AfH products division, are part of the Pehart Group portfolio. The company also produces jumbo rolls, giant rolls of paper used in the converting process into paper products for household and industrial use.
Pehart Grup is defined by continuous evolution, efficiency, respect for the planet’s resources and for the people who build its story every day. It continuously optimizes its products and services by creating a sustainable and equitable environment for a renewable future. Respect for the latest environmental regulations through the traceability of resources, efficient production and use of materials, and a safe, pleasant working environment for the team and partners are Pehart Group values, as is the encouragement of initiative and entrepreneurship within the company.
About Abris Capital Partners
Abris Capital Partners is a leading independent private equity fund focusing on mid-market opportunities in Central European countries. Founded in 2007, Abris’ strategy is to partner with the most dynamic and successful companies in Central Europe that can benefit from an inflow of capital and/or management expertise at both strategic and operational levels. With an investment capital of approximately €1.3 billion, Abris has raised financial backing from many of the world’s leading global investment institutions, including public and corporate pension funds, financial institutions, insurance companies and endowment funds from US universities. Abris has a long-term investment horizon and operates regional teams in Warsaw and Bucharest.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a liveable planet. For more information, visit www.ifc.org.
About Banca Transilvania
BT is the largest bank in Romania and Southeast Europe. A universal bank, it covers all customer segments and business lines in the financial sector. It has 23% market share, almost 5 million customers, more than 10,000 employees, online banking solutions and 530 branches in 180 locations. Beyond banking, BT’s strategy is to make a positive impact in Romania – for people, business and the environment.
About ING Bank Romania
ING Bank Romania is part of ING Group, a global financial institution that provides banking services to over 38 million individual, corporate, and institutional clients in more than 40 countries. Established in 1994, ING Bank Romania is now a universal bank, offering products and services to all client categories – large and small companies, financial institutions, small entrepreneurs, and individuals. ING Bank Romania is the only bank among the top 10 local banks by assets that has achieved organic growth, without acquiring client portfolios or other banks. ING Bank Romania serves over 1.9 million clients across three business segments: retail, SMEs & Mid-Corporate, and Wholesale Banking. ING’s mission is to empower people to stay a step ahead in life and business.