Latvia-based PET Baltija, one of the major PET recyclers in Northern Europe, has announced that it has acquired Czech fibre producer Tesil Fibres. Tesil Fibres is a spin-off company of Planá, Czech Republic-based Silon, a company specialised in the manufacture and marketing of polyolefin based performance compounds and polyester fibres for a range of applications.
The company is selling off the business to focus on the production and development of high-performance polyolefin-based compounds, said Šuchrat Saidov, CEO at Silon.
“We decided that the best route to success for the fibre division would be to identify a respected strategic partner who can further grow and develop it. We are delighted to […] have found a solution which, we believe, will be the best possible outcome for fibre production in Planá.”
For PET Baltija, the acquisition will vertically integrate the company into the value chain, boost its current revenues by more than 50% and put the company on the map as a key international player, said Salvis Lapiņš, Chairman of the Board at PET Baltija.
Once closed, this transaction will become one of the largest investments by a Latvian company in the Czech Republic to date.
Tesil Fibres, which produces some 33 000 tonnes of fibre per year is a primary supplier to the European market, serving, among others, the automotive, hygienic, textile and furniture markets. The company has around 150 employees; its fibre division recorded sales of €27million.
“Working closely with the team and other key stakeholders, we plan to develop the company further. By ensuring the supply of best-in-class recycled PET materials, we will look to significantly contribute to the growth of the Tesil Fibres business and add greater product differentiation to it,” said Salvis Lapiņš. He added that ‘through these developments, the overall volume of recycled PET will also increase’.
The deal was backed by INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, with the European Investment Fund acting as its anchor investor. The fund is managed by the investment management and life insurance group Invalda INVL.
INVL Baltic Sea Growth Fund acquired majority stake in the Eco Baltia group of companies, to which PET Baltija belongs, in June 2020.
“This agreement to acquire reinforces INVL Baltic Sea Growth Fund’s goal to significantly expand PET Baltija through both organic growth and bolt-on acquisition strategies,” said Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET.
“Since our initial investment, PET Baltija alone has more than doubled its revenue and is on track to finalise an organic growth expansion project that will more than triple its food-grade PET production capabilities. This deal will cement the company as a truly international vertically integrated market player that is committed to sustainability and tackling environmental issues.”