Sorainen has advised Bagfactory on its investment from Livonia Partners. TGS Baltic advised Livonia Partners.
The transaction, which would see Livonia Partners acquire 48% of Bagfactory’s shares, is contingent on regulatory approval.
Bagfactory is a Baltics manufacturer of non-woven and paper bags. Livonia Partners is a private equity fund focused on buyout and growth capital investments in small to mid-sized companies in Estonia, Latvia, and Lithuania.
According to Sorainen, “the new investment will allow Bagfactory to accelerate the already fast growth of the company. Special attention will be given to closed-loop processes including the collection, recycling, and manufacturing of materials and final products. The company will also consider the acquisition of other manufacturing and sales companies in the European Union and the United States and the opening of new sales offices abroad.”
According to the firm, “since the establishment of the company in 2015, the team has invested heavily in developing technologies for making environmentally-friendly carrier bags. In 2022, Bagfactory‘s turnover reached EUR 10.4 million, more than double that of 2021. This year Bagfactory will begin to manufacture R-PET carrier bags in an automated manner, from 100% recycled PET bottles. With this innovation and built machinery, Bagfactory claims to be the first company in the world to have replaced the needle-and-thread method used in Asia.”
Sorainen’s team included Partner Mantas Petkevicius and Senior Associate Mindaugas Dominykas Baniulis.
TGS Baltic’s team included Partner Marius Matonis, Senior Associates Indre Vickaite-Liatuke, Jonas Salna, Ruta Tikuisyte, and Rokas Kazakevicius, Associates Auguste Linauskaite and Violeta Maciulyte, and Junior Associate Paulius Baronas.
