LITHUANIA – Lithuania-based Galinta, has agreed to a 100% takeover offer from private equity firm INVL Baltic Sea Growth Fund for undisclosed financial terms.

Galinta Group is one of the largest producers of buckwheat in Europe as well as one of the leading producers and traders of flakes, rice, and other groats in the Baltic region.

The transaction is expected to be completed at the beginning of 2024 subject to permission from the Competition Council of the Republic of Lithuania.

In a statement announcing the transaction, Galinta Group owner Marijus Mazuch noted that having been in operation for more than two decades, Galinta Group holds a significant position in the production of groats and flakes as well as commercial activities across the Baltics and Europe.

He added that he strongly believes that this transfer to professional investors will now allow the group to continue growing and further strengthen its already impressive market.

The group, which has a buckwheat processing factory and two-grain elevators among its assets, also offers private-label manufacturing to retailers and wholesalers.

In 2022, Galinta Group generated “around” €38.5m (US$42.1M) in 2022, without giving a comparative figure.

According to the company, the revenue rise was attributed to buckwheat production capacity reaching 1,000-1,500 tons per month, and packaging – around 8 million units per month. Galinta Group currently employs more than 100 people in Lithuania.

On his part, Deimantė Korsakaitė, managing partner of INVL Baltic Sea Growth Fund, noted that the business has the potential for rapid growth by both increasing volumes in existing markets and expanding into new ones as well as the launch of new product segments.

“We believe that the plant-based food sector has strong potential for growth and Lithuania demonstrates a competitive advantage in the field of food processing, especially in the grain segment,” Korsakaitė added

He noted that Galinta has represented one of the strategic sectors the company has looked at for potential investment since the fund’s establishment.

Galinta is INVL Baltic Sea Growth Fund’s ninth investment. It has backed businesses in sectors including healthcare, engineering, and waste management.

The fund, which has the European Investment Fund (EIF) as its main investor, focuses on the Baltic states, Poland, Scandinavia, and markets in central Europe.