Eco Baltia plans to acquire Eko Osta, a company that collects and recycles hazardous waste
Expanding the company's activities and range of environmental services, the largest environmental resource management and recycling company in the Baltics, JSC (AS) Eco Baltiaplans to acquire Eko Osta Ltd. (SIA), Latvia's leading collection and recycling company for environmentally harmful and hazardous waste. The purchase agreement concluded by the parties, which requires merger authorisation from the Latvian Competition Council (CC), provides for the acquisition of 100% of the shares in Eko Osta.
With the conclusion of the transaction, Eko Osta will become one of the companies in the environmental management sector of the Eco Baltia group, specialising in the management of hazardous and environmentally harmful waste. At the same time, it should be stressed that no changes are planned to the existing cooperation agreements and arrangements for both parties' clients, partners and employees.
Mr Māris Simanovičs, Chairman of the Board of Eco Baltia: "In recent years, we have significantly expanded Eco Baltia's areas of activity, strengthening our market position internationally as a full-cycle environmental resource manager. The inclusion of the environmentally harmful and hazardous waste collection and recycling company in the Eco Baltia Group is a significant step towards faster development, covering an even more diverse waste stream to be recycled. The deal will ensure better collection and circulation of waste in segments where compliance with national standards has so far been difficult. This will benefit both the customers of the group company Latvijas Zaļais punkts in terms of meeting their environmentally harmful waste collection targets, and the country as a whole in meeting its recycling targets more successfully."
Eko Osta will continue to cooperate with other participants in the producer responsibility system, promoting faster compliance with the national hazardous waste collection and recycling standards.
Andrejs Laškovs, the current shareholder of Eko Osta: “Eko Osta has been providing specific waste management and other services in Latvia for more than 20 years. This requires a special approach and precision in all company processes, ensuring that services are delivered to the highest environmental standards and to an excellent quality. As the environmental management sector develops not only nationally, but also internationally, we see great potential for growth in Eco Baltia's portfolio of companies. This will benefit for both, the partners, customers and employees of Eko Osta, as well as the country as a whole, by contributing to a comprehensive reduction of negative environmental impacts.”
Eko Osta is engaged in the collection, transportation by floating and land vehicles, treatment and recycling of petroleum-contaminated water and soil, recycled lubricating oils, organic solvents, used oil filters and tyres, as well as geological, hydrogeological, geoecological and geotechnical research, environmental quality monitoring and environmental remediation. Eko Osta employs around 70 people and had a turnover of EUR 7.79 million in 2023.
Jānis Aizbalts, Head of Environmental Management, Eco Baltia Group: "Eco Baltia has experienced rapid development in the environmental sector in recent years. This included covering larger waste management regions and types of materials, as well as the development of recycled materials sorting in Latvia and Lithuania. Last year, we also expanded into urban environmental management, where the Group's environmental company Eco Baltia vide has more than a decade of experience. The addition of Eko Osta to Eco Baltia's existing portfolio allows us to take even greater steps to promote the circular economy in the country, while strengthening our market position as a full-cycle waste management and recycling group."
The acquisition of the company is planned to be carried out through Eco Baltia's subsidiary Latvijas Zaļais punkts. Financing of the transaction is planned by attracting bank funding, and the parties have agreed not to disclose the amount of the transaction publicly.
About Eco Baltia
Eco Baltia group is the largest environmental and waste management group in the Baltics, providing the full-cycle waste management solutions from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing as well as PET and PE/PP plastics recycling.
Eco Baltia group has closed 2022 with its historically highest consolidated turnover of EUR 210 million, representing a 75% increase compared to 2021. Total combined sales revenue (pro-forma) in 2022 amounted to 240.5 million euro.
The group companies employ around 2,300 employees in Latvia, Lithuania, and Czech Republic. Its leading companies are PET Baltija, Eco Baltia vide, Latvijas Zaļais punkts, Nordic Plast, JUMIS, Pilsētas Eko Serviss, Czech TESIL Fibres and Lithuania-based Ecoservice. In November 2023, the group, in 55%/45% partnership with INVL Baltic Sea Growth Fund, completed the acquisition of 70% stake in Metal-Plast, the largest recycler of PVC window and door profiles in Poland.
Shareholders of Eco Baltia are private equity fund INVL Baltic Sea Growth Fund (52.81%), the European Bank for the Reconstruction and Development (30.51%) and Māris Simanovičs (16.68%).
About Eko Osta Ltd:
Eko Osta is a waste manager and recycler of environmentally harmful and hazardous waste. The company was registered in 1999 and its service portfolio consists of collection, transportation (floating vehicles, land vehicles), treatment and recycling of petroleum contaminated waters and soil, recycled lubricating oils, organic solvents, collection and transportation of used tyres, geological, hydrogeological, geoecological and geotechnical surveys and other services.
Additional information:
Alise Zvaigzne
Public Relations Project Manager
Eco Baltia
Phone +371 28780467
alise.zvaigzne@ecobaltia.lv
www.ecobaltia.lv
|