SOL Baltics purchases a company from BaltCap in Lithuania
22. September 2020
Press release 22.09.2020
SOL Baltics, whose headquarters are located in Tallinn, has acquired 100% of the leading Lithuanian utility system maintenance company UAB Yglė Pastatų Valdymas from the investment company BaltCap and a small-scale investor. Following the transaction, SOL Baltics will become a company providing comprehensive cleaning and maintenance services in Lithuania with an annual turnover of 3.5 million euros and 200 employees.
The CEO of SOL Baltics, Rinel Pius, says the crisis year 2020 has not led to a significant decline in the sphere of cleaning services and utility maintenance: “We have now recovered from the 10–15 per cent decrease experienced in the summer, and we are already developing our action plans for the year 2021 at the same level as in 2019.”
Yglė Pastatų Valdymas (YPV) is one of the largest Lithuanian utility system maintenance companies with branches in Vilnius, Kaunas, Klaipėda, Panevėžys, and Šiauliai and customers in real estate management, hotels, healthcare, production, and other sectors. Previously, SOL Baltics outsourced services to YPV.
“Now is the right time for expansion because businesses around us are increasingly realizing that hygiene and cleanliness help keep the economy going. Cooperation with YPV and its employees seemed natural, and we definitely wanted to continue it,” Pius explained the purchase decision.
BaltCap’s partner Šarunas Stepukonis says an important factor in in making the sales decision was that the new owners of would be strategic investors with extensive experience in the sector, a clear vision of the company’s development and appropriate values. “In the last 6 years that YPV has been a part of BaltCap’s portfolio, the company’s business has grown enormously, and by now it has secured a position among market leaders. YPV is one of the most advanced and promising companies in the sector, boasting a professional team and a capable leader who have contributed greatly to YPV’s success story,” Stepukonis noted. BaltCap owned 75% of the company.
The remaining 25% were held by the CEO of YPV, Agnė Grendelė, who will now continue as the head of SOL Baltics Lithuania and will join the management of SOL Baltics. Grendelė says the merger with an international company means the expansion of business operations for the company and its team. “SOL Baltics has become a figure to be reckoned with in the Lithuanian sector of cleaning services, and its customers have been requesting the utility maintenance service more and more often. These are the competencies we are bringing as we join the new company,” Grendelė added.
In 2019, YPV’s turnover amounted to 2 million euros, and it had 50 employees. In the process of merging with SOL Baltics, the financial advisor to the parties in the M&A transaction was Aureus Capital Consulting OÜ, and the legal advisor, KPMG Law. The BaltCap investment company was consulted by Ellex.
The sale transaction was closed today, on 22 September, and will result in SOL Baltics becoming the leading provider of cleaning services and utility maintenance services in Lithuania. SOL Baltics the market leader in the sector of cleaning services and utility maintenance in Estonia and Latvia.
SOL Baltics OÜ
SOL Baltics provides cleaning, safety and amenity services for workplace environments and public spaces, including real estate management and laundry services, in Estonia, Latvia and Lithuania. The company employs 2300 people, and its annual turnover amounts to nearly 30 million euros.
SOL Baltics is a part of SOL Group, one of the oldest and largest family-owned enterprises in Finland. SOL was established in 1848 and is currently run by the fourth generation of the family. SOL Group had a total turnover of 326 million euros in 2019 and more than 14,000. The company operates in Finland, Sweden, Denmark, Baltics, and Russia.