Abris Capital agrees sale of Pehart
Abris agrees sale of leading tissue paper producer in SEE
10 December 2024, Bucharest – Abris Capital Partners (“Abris”), the ESG transformation specialist private equity investor and B Corp, has signed an agreement to sell Pehart Group („Pehart“), the #1 vertically integrated consumer tissue paper manufacturer in Romania, to INVL Baltic Sea Growth, the leading private equity fund in the Baltics.
Based in Transylvania, Pehart is the leading producer of household and industrial paper products in Romania and one of the largest players in SEE, present with its products in 19 countries. With significant investments in recent years targeting high-performance production technologies, energy efficiency, portfolio diversification and consolidation on the regional market, the company is constantly striving for a lower carbon footprint and sustainable development.
During its holding period, Abris aligned a seasoned management team and together steered the company‘s production-centric focus towards sales and marketing. Pehart became the fastest-growing consumer business, consistently outperforming the market and competitors, in both growth and profitability (2.5x increase in revenues and 3.0x increase in EBITDA since entry).
The transaction is expected to be completed in the first quarter of 2025, subject to obtaining the necessary regulatory approvals and fulfilling other conditions stipulated in the agreement.
Adrian Stanculescu, Partner and Head of Romania at Abris Capital Partners commented:
”We are most proud of the management team at Pehart and grateful for their relentless dedication in steering the company through both challenging times and market opportunities. We are confident in their ability to continue Pehart’s positive evolution and consolidate its position as a top player on the regional market. This milestone marks the end of an excellent partnership and confirms the success of our strategy to support high-potential companies in achieving their growth objectives”.
Pehart produces toilet paper, paper towels, napkins, and other hygiene paper products, as well jumbo rolls, used in the converting process into paper products for household and industrial use. Pufina, one of the most popular tissue paper brands in Romania, Alint, Altessa and SOVIO, the Away-from-Home products division, are part of Pehart portfolio. In 2023, Pehart generated revenues of EUR 168 million and employed nearly 550 people across its companies.
Gabriel Stanciu, CEO Pehart stated:
”In continuing the development strategy of our company, we are looking forward to this new partnership with INVL Baltic Sea Growth Fund. Pehart Group, a Romanian brand with a lasting tradition and a history strongly linked to the beginning of consumer paper processing in Romania, had a remarkable evolution in the past years alongside a valued partner on this journey, and for that we thank Abris Capital Partners. We are ready to leverage the growth opportunities and enhance our market position together with our new partner. We will continue to focus on operational excellence, creating value for consumers and extending our position in the region. The confidence that INVL Baltic Sea Growth Fund has shown in our vision and potential is a testament to the value and performance of our team”.