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BPM Mezzanine Fund exited its investment in Latvian dairy company Smiltenes Piens

16 December 2020

BPM Mezzanine Fund exited its investment in Latvian dairy company Smiltenes Piens.

BPM Mezzanine Fund SICAV-SIF, SCA (BPM) invested in the buy-out of a well-known Latvian dairy company Smiltenes Piens in August 2019, as former owners of the company were looking forward to retire and Latvian entrepreneur Armands Kovaldiņš saw Smiltenes Piens with its well-know brands and quality leadership as an attractive target to be developed further and expand into export markets as well. BPM was the sole debt provider in the transaction. In the current turbulent environment Smiltenes Piens has proven to be a stable, resilient, and high-quality asset, which is also appreciated by senior lenders. Accordingly, refinancing of mezzanine with senior loan was an awaited step in the development of the company and with this BPM exited its investment into Smiltenes Piens.

Partner of BPM Capital, Mr. Martin Reinson, commented that although our journey with Smiltenes Piens was short, it has been very successful and I would like to thank Armands and his team for their efforts in those turbulent times.  When people think of Smiltenes Piens, they think of dairy products with highest quality and I believe this forms an excellent base to develop this company further and enter new markets.

Owner of Smiltenes Piens, Mr. Armands Kovaldiņš added: acquiring Smiltenes Piens was truly a unique opportunity and to execute the transaction we needed a flexible, reliable and fast partner. I am very happy that we found such partner – BPM. The cooperation with BPM has been smooth and already from beginning it seemed as if we had worked together already for a long time.

For further enquiries, please contact:

BPM Capital: Martin Reinson, e-mail: martin.reinson@bpmcapital.eu

Smiltenes Piens: Armands Kovaldiņš, e-mail: armands.kovaldins@smiltenespiens.lv

More information about BPM Capital

BPM Capital (www.bpmcapital.eu) is an independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin Reinson, Paweł Zabrzycki and Priit Veering.  BPM is supported by prominent international and domestic institutional investors. BPM was originated through the Baltic Innovation Fund initiative created by cooperation between Estonia, Latvia, Lithuania and the European Investment Fund. Portfolio companies include MarkIT, OC Vision, Eskaro, DEAC (exited in August 2020), Corle, Tahe Outdoors, DenEesti, Smiltenes Piens, Zoo Factory, iDS.

More information about Smiltenes Piens

Smiltenes Piens (www.smiltenespiens.lv) is one of the oldest Latvian dairy companies. The Company holds a significant market share in Latvian dairy market with a leading position in the cheese segment. The product portfolio ranges from sour cream to cheese cakes, but with main focus on different types of cheese.

 


 

20 August 2019


BPM Mezzanine Fund provided financing for the buy-out of a reputable Latvian dairy “Smiltenes Piens”. 
 

BPM Mezzanine Fund SICAV-SIF, SCA (BPM) has provided financing for the buy-out of a well-known Latvian dairy Smiltenes Piens. Smiltenes Piens is one of the leading Latvian dairy companies with a high quality product portfolio, ranging from dairy drinks to cottage cheese. Smiltenes Piens stands out with its excellent choice of cheese products, which are very popular in the Latvian market. The new owner of the Company, Mr. Armands Kovaldins, plans to continue with the same strategy and maintain strong foothold in the Latvian market, but also gradually increase the share of exports in the sales portfolio. Commenting on the deal, Mr. Armands Kovaldins noted that the buy-out of Smiltenes Piens was a logical step for all parties involved. We respect and value very highly the contribution of Gita Murniece and Girts Strads (the exiting shareholders), who developed Smiltenes Piens over decades and turned it into a modern dairy with high quality products and strong brands. This forms a strong foundation to grow the business further and we believe that together with the existing management team we are able to achieve this. 

“It is an excellent opportunity for us to back the buy-out of such prominent company with strong brands, top-quality products and high reputation. We believe Mr. Kovaldins together with the management team can develop the Company further and the products of Smiltenes Piens can also be well received in the export markets. We also consider the dairy industry to be attractive with its countercyclical characteristics. The investment is an awaited addition to BPM’s portfolio due to its stable nature in combination with growth potential,” said Martin Reinson, Partner of BPM Capital.

 

For further enquiries, please contact: 

BPM Capital: Martin Reinson, tel: +372 605 0072, e-mail: martin.reinson@bpmcapital.eu 

Smiltenes Piens: Armands Kovaldins, tel: +371 2026 2606 e-mail: armands.kovaldins@smiltenespiens.lv 

 

More information about BPM Capital 

BPM Capital (www.bpmcapital.eu)is an independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin Reinson, Paweł Zabrzycki and Priit Veering. BPM is supported by prominent international and domestic institutional investors. BPM was originated through the Baltic Innovation Fund initiative created by cooperation between Estonia, Latvia, Lithuania and the European Investment Fund. 

More information about Smiltenes Piens 

Smiltenes Piens (www.smiltenespiens.lv) is a Latvian dairy company operating out of two production facilities in Smiltene and in Blome. The Company’s key products include cheeses, dairy desserts, dairy drinks, cottage cheese, sour cream, kefir, butter and milk. Smiltenes Piens products are widely recognized and have received a number of prizes and honors.

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