English Latvian
Published: 2023-05-02 09:30:00 CEST
Eco Baltia
Company Announcement

Eco Baltia's environmental sector companies SIA Eco Baltia vide and SIA Pilsētas Eko serviss to be merged by the end of the year

To further streamline the corporate governance structure of AS Eco Baltia, the largest environmental resource management group in the Baltic States, and to improve the quality of services and competitiveness in the street and road maintenance services, the merger of the group's leading environmental management company SIA Eco Baltia vide and the street and road maintenance company SIA Pilsētas Eko Serviss has started. The merger will take place in several stages and is expected to be completed in late 2023.

Pilsētas Eko Serviss joined the Eco Baltia Group in late January this year and ever since we have been purposefully looking for synergies and opportunities to increase our competitiveness and offer in the street and road maintenance sector by combining our strengths and competencies. The decision to merge the two companies is therefore a logical next step. Our goal is to create a strong market leader that can invest in development, more environmentally friendly technology, and even higher quality of existing services by developing new environmental cleaning services and their accessibility, while also meeting the goals and objectives set out in our sustainability strategy,” says Jānis Aizbalts, Head of Eco Baltia's Environmental Management Segment and SIA Eco Baltia vide's Chairman of the Board.

On 20 January this year, SIA Eco Baltia vide through its subsidiary Latvijas Zaļais punkts completed the acquisition of the street and road maintenance companies Pilsētas Eko Serviss, SIA PES Serviss and SIA B 124. The transaction was approved by the Competition Council in December 2022. In the course of the reorganisation, in accordance with the requirements of laws and regulations and the procedure provided for therein, all three newly acquired companies will be incorporated into SIA Eco Baltia vide in several stages, with SIA Eco Baltia vide taking over the rights, liabilities and assets of these companies.

The reorganisation is not expected to affect current business partners and customers. All necessary arrangements will be made with partners. At the end of the merger, the legal status and details of SIA Pilsētas Eko Serviss and the contact details of its customer centre will change, but all customers and partners of the company will be informed about this in accordance with the terms of their contracts. Throughout the reorganisation and as a result thereof, the employees of SIA Pilsētas Eko Serviss will be provided with an improved basket of additional benefits, a bonus system, as well as training and development opportunities in line with Eco Baltia standards, thus ensuring even more favourable working conditions and professional development opportunities within the Group.

Established in 2003, SIA Pilsētas Eko Serviss offers services such as street and road maintenance, water drainage system maintenance and repair, and equipment rental. In 2022, the company had a turnover of EUR 7.18 million. It employs around 70 people.

SIA Eco Baltia vide is an environmental management company with more than 500 employees in Latvia. In 2022, the company's unaudited net turnover amounted to EUR 49.32 million. The total consolidated unaudited net turnover of Eco Baltia's companies in the environmental management sector, including its Lithuanian subsidiaries, was EUR 111.2 million in 2022.

In terms of turnover, AS Eco Baltia is the largest environmental management and waste recycling group in the Baltic States. In 2022, the Group's pro-forma revenues reached EUR 240 million, compared to EUR 150 million in 2021. In September 2022, Eco Baltia continued to expand, with AS PET Baltija, one of the largest PET recycling plants in Northern Europe, acquiring TESIL Fibres, a leading Czech fibre producer, and Eco Baltia vide acquiring SIA Pilsētas Eko Serviss in January this year.

The Group employs more than 2,300 people in Latvia, Lithuania and the Czech Republic, and its largest companies are PET Baltija, Tesil Fibres, Nordic Plast, Eco Baltia vide, Ecoservice, Latvijas Zaļais punkts, JUMIS and SIA Pilsētas Eko Serviss.

The shareholders of Eco Baltia are INVL Baltic Sea Growth Fund through UAB BSGF Salvus (52.81%), the European Bank for Reconstruction and Development (30.51%) and the company's management (16.68%).

         Alise Zvaigzne
         Public Relations Project Manager
         Eco Baltia
         Ph. +371 28780467
         alise.zvaigzne@ecobaltiavide.lv
         www.ecobaltia.lv
         www.ecobaltiavide.lv