Largest M&A deal in Lithuania: retail chain IKI to be acquired by Rimi Baltic

23.12.2016

Sorainen is acting as lead legal counsel for the shareholders of Palink, the operator of the IKI retail chain, on the sale of 100% of Palink shares to Rimi Baltic. With a total transaction value of EUR 213 million, this is the largest M&A transaction in Lithuania this year. The acquisition of IKI means that Rimi Baltic will become the second largest player in the growing Lithuanian grocery retail market, from being the fourth largest currently. Subject to obtaining regulatory approvals the transaction is expected to complete not later than in the fourth quarter of 2017.

Palink is the second biggest grocery retailer in Lithuania, operating more than 230 retail shops. Established by three brothers Ortiz from Belgium in 1991, Palink opened its first store, billed as Lithuania’s first self-service food shop, in July 1992. Today Palink is an EUR 630 million-turnover company with an EBITDA of EUR 35 million in the 12 months ended September 2016. Rimi Baltic operates a grocery retail business in the three Baltic States with 262 stores in total, 56 of them in Lithuania.

Sorainen is providing full legal support to the Palink shareholders as the sellers in this transaction. The Sorainen team in this transaction is led by partner Laimonas Skibarka and specialist counsel Liudas Ramanauskas.

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