INVL-backed PET Baltija buys Tesil Fibres

Fibre producer Tesil Fibres is a spin-off from Czech company SILON.

  • The deal will increase PET Baltija’s revenues by more than 50 percent
  • Tesil Fibre’s fibre division recorded sales of €27 million in 2021
  • The deal is part of INVL Baltic Sea Growth Fund’s plan to expand PET Baltija through organic growth and M&A

PET Baltija, backed by INVL Baltic Sea Growth Fund, announced on Monday that it has bought Tesil Fibres.

Tesil Fibres is a Tabor, Czechia-headquartered fibre production company that supplies European companies in the automotive, hygienic, textile and furniture sectors. The company is a spin-off of Czech company SILON, a producer of technical compounds and polyester staple fibres.

The deal will increase PET Baltija’s revenues by more than 50% and is part of INVL Baltic Sea Growth Fund’s plan to expand PET Baltija through organic growth and M&A.

PET Baltija, headquartered in Jelgava, Latvia, is one of the largest polyethylene terephthalate (PET) recyclers in Northern Europe and the largest PET recycler in the Baltic region. It belongs to Eco Baltia, the largest environmental and waste management group in the Baltics. INVL Baltic Sea Growth Fund owns a 52.81 percent stake in Eco Baltia.

“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,” said Deimantė Korsakaitė, executive partner at INVL Baltic Sea Growth Fund and chairman of the supervisory board at PET Baltija. “This deal will cement the company as a truly international vertically integrated market player that is committed to sustainability and tackling environmental issues. This represents a significant development and leads to become a €100 million-plus revenue company.”

Invalda INVL, which manages the INVL Baltic Sea Growth Fund, was formed in 1991 and is an investment management and life insurance group with €1.7 billion of assets under management.  INVL Baltic Sea Growth Fund has a total size of €165 million. The fund has looked to assemble a diversified portfolio of companies, targeting majority and significant minority stake deals. It looks to allocate between €10 million to €30 million per ticket.

“This deal will really put PET Baltija on a map as a key international player for the sector,” said Salvis Lapiņš, chairman of the board at PET Baltija. “We recognise and are excited by Tesil Fibres’ impressive high growth potential and its dedicated team of professionals. Working closely with the team and other key stakeholders, we plan to develop the company further, accelerating its growth and creating real value for all those involved. 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. It is also important to mention that through these developments, the overall volume of recycled PET will also increase.”