Pan-Baltic private equity fund Livonia Partners has invested in Lithuanian eco-friendly machine made reusable and paper bag producer Bagfactory. The transaction is anticipated to conclude by the beginning of this summer.
- The Vilnius-based Bagfactory produces a non-woven R-PP, R-PET, and paper bag from recycled materials that are long-lasting and can be reused, and, at the end of their lifetime, can be easily collected and recycled. The company claims that in 2022 it manufactures 50 million multi-use environmentally–friendly bags.
- Bagfactory supplies multiple sectors including supermarkets, the hospitality industry, fashion retail, consumer electronics across 23 countries. Among its clients are such global brands as Pepsi, Coca-Cola, Nike, Colgate, Lidl.
“In 2022, with scientists from Kaunas University of Technology, we created a technological solution that will allow us to be the first in the world to manufacture carrier bags in an automated manner, from 100% recycled PET bottles. We will begin manufacturing these carrier bags this year. By the middle of 2023, we will also present another, more sustainable alternative to single-use plastic bags. I believe that we have every opportunity to become competitive leaders of sustainable innovation,”
said the Chairman of the Bagfactory Board and the сo-founder, Marius Rumbinas.
- Livonia Partners is a pan-regional private equity fund focused on buyout and growth capital investments in small to mid-sized companies in Estonia, Latvia, and Lithuania. The Bagfactory investment is the fourth investment for Livonia Partners €157 million Fund II, announced in September 2022.
- The amount of investment was not disclosed, but it will allow Bagfactory to accelerate its growth and technological development. The company will also consider the acquisition of other manufacturing and sales companies in the European Union and the US, and the opening of new sales offices abroad.
