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. That year, the company generated revenues of EUR 165 million and employed more than 550 people across its operations. Its portfolio includes Pufina, one of Romania’s most popular tissue paper brands, along with Alint, Altessa, and SOVIO, the division dedicated to Away-from-Home products.

 

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: ”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.” 

 

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 overt EUR 150 million financing package for Pehart Group. 

 

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.”