The State Investment Management Agency (VIVA), which manages the State Aid Fund for Business (Fund), signed a deal with one of the biggest engineering solutions, industrial equipment manufacturing and construction company Montuotojas. Under the signed agreement, the Fund will acquire in stages the company bonds that are up to €5 mn in value. The main shareholder of Montuotojas, a private equity fund INVL Baltic Sea Growth Fund, has granted the company additional €1 mn.
Montuotojas is currently implementing the modernization program, which concentrates on increasing the efficiency of project management, improvement of production operations and results, asset management. Recent changes include the new team of executives, reinforced excellence in sales, and increase in contract portfolio both in Lithuania and in foreign countries.
“We started this year by securing large contracts which required a financial boost to make sure their implementation goes smoothly. State Aid Fund for Business granted us the needed resources. The long term financial assistance will allow achieving the sustainable growth and development of the company, timely settlements with the partners and suppliers that are helping Montuotojas with the projects in Lithuania and abroad,” said CEO of the company Martynas Pargaliauskas.
“The company has been in business for more than half a century and has acquired extensive knowledge in implementing complex projects in Lithuania and foreign countries. I am delighted that the company, which currently has huge production capacity, is investing into modernization, digitization and sustainable solutions. The funds loaned by the state will reinforce the working capital, improve the company’s positions in the foreign tenders and allow successful investments in the areas that require sustainability,” commented Dainius Vilčinskas, CEO of VIVA.
According to the signed contract, the Fund will grant financial support for six years, which is to be used for securing planned and pandemic-disrupted investments, implementation of modernization processes, working capital for project implementation, and improvement of employee qualifications.
“Sustainable long-term financing will allow Montuotojas to achieve the strategic objectives – rapid growth in the Lithuanian and foreign markets, turnkey project development, increased engineering excellence, growth of sales and profitability. We believe that Montuotojas will soon become the fast growing engineering company both in Lithuania and the region,” said Vidas Venckus, partner of one of the largest private equity funds in the Baltic countries INVL Baltic Sea Growth Fund.
Montuotojas started this year with an order portfolio worth €18 mn. The orders came from large industrial and energy companies both in Lithuania and abroad. “Montuotojas” is currently working with such companies as Klaipeda stevedoring company Bega, Lifosa, Dominari, Conresta, Kauno energija, Vita Baltic, YIT Kausta, Orlen Lietuva and others.
About the State Aid Fund for Business (SAFB):
The State Aid Fund for Business invests in medium-sized and large enterprises in Lithuania facing the COVID-19 challenges. The Fund seeks to become a sustainable partner for medium and large companies that do not acquire financing from the relevant market players. The state investment helps preserve the large and medium businesses, stimulate and develop different sectors of the economy. The State Aid Fund for Business invests is managed by the State Investment Management Agency (VIVA). All information about the operation of the fund, investment criteria and application forms can be found on its website (www.viva.lt).
Montuotojas is one of the largest engineering solutions, industrial equipment manufacturing and industrial construction and installation company in the Baltic countries. The company provides the services of general contracting, civil engineering solutions, designing, manufacturing, installation and consultation for industrial, energy and other companies in Lithuania and Europe. Montuotojas employs about 500 experienced specialists.
About INVL Baltic Sea Growth Fund
€165 mn INVL Baltic Sea Growth Fund is the largest private equity investment fund in the Baltic States, with the European Investment Fund (EIF) as the main investor. The EIF has committed €30 mn with the support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the “Junker Plan”), as well as allocating resources from the Baltic Innovation Fund, the “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. This aims to increase capital investment in high growth potential small and medium-sized enterprises in the Baltic States.
The Fund seeks to assemble a diversified portfolio of companies, targeting majority or significant minority stake deals and writing tickets of €10 mn to €30 mn, that showcase high growth potential and the ability to compete on a truly global basis.
The Fund is focused on the Baltic States and the neighboring regions of Poland, Scandinavia and Central Europe. The Fund so far has invested in four companies within the healthcare, civil engineering and environmental sectors.
The Fund is managed by INVL Asset Management. It is part of the Invalda INVL, one of the leading asset management groups in the Baltic region. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments.
Over 240,000 clients in Lithuania and Latvia and international investors have entrusted the group with more than €1.2 bn of assets under management. Active since 1991 and with a solid track record, Invalda INVL boasts 30 years worth of experience in managing private equity assets in the Baltic countries and CEE landscape while developing companies into best-in-class market leaders.