“This transaction puts PET Baltija on the map as a key international player in the PET recycling sector. Up to this point, we were the region's leading player in terms of recycled PET production but now our portfolio will also include the production of a finished product – PET fibre. The growth potential of TESIL Fibres as well as its close-knit and professional team serve as an excellent foundation to further the development of the company and make smart use of the synergies between the two businesses. The vertical integration of PET Baltija and TESIL Fibres and a closer cooperation between the two will help us to create more value for our employees, customers and partners,” said Salvis Lapiņš, Chairman of the Board at PET Baltija.
TESIL Fibres is the Czech Republic’s largest producer of PET fibre with 150 employees and an annual capacity of 33 000 tonnes, reaching revenues of €27 million last year. Known for its high production quality standards, the company acts as a primary fibre supplier in the European market for the automotive, hygiene, textile and furniture segments.
Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, commented: “PET Baltija has more than doubled its revenues since our investment. In parallel to further organic growth and investments in production expansion set to more than triple the existing food-grade rPET capacities, PET Baltija is also pursuing a path of vertical integration, in line with the overall strategy. Following the acquisition, the combined revenues of PET Baltija are set to exceed €100 million, solidifying it as an international player and further strengthening its contribution towards sustainable development.”
The financing for the transaction, which marks one of the largest investments made by Latvian companies in the Czech Republic to date, was granted by Luminor Bank, the third largest provider of financial services in the Baltic States.
Ilze Zoltnere, Head of Corporate Banking at Luminor in Latvia, added: "Even in this difficult geopolitical environment, Eco Baltia group companies are able to show steady growth and continue to develop, including through well-considered investments focused on expansion and new markets. We are pleased to support the company's objectives by financing a transaction of a significant scale, which is a strategic step to strengthen the presence in the international market and continue sustainable growth."