We advised Bagfactory, the largest manufacturer of non-woven and paper bags in the Baltics, on attracting investment from private equity fund Livonia Partners.The pan-Baltic fund will acquire 48 % of Bagfactory’s shares. The transaction will be completed after permission is obtained from Lithuania’s Competition Council.

Fast growth

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.

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.

Focus on sustainable innovation

“We have customers in 23 countries throughout the world, including well-known international brands and the largest retail chains in Europe. We share the same attitude towards sustainability, innovation, and business development as Livonia Partners – the main factors influencing our selection of a partner for the next stage of development”, says Gvidas Krolis, CEO and Co-Founder of Bagfactory.

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.

Our services and team for the project

Our team, consisting of partner Mantas Petkevičius and senior associate Mindaugas Dominykas Baniulis, advised the client on all legal matters related to the transaction, including negotiation and preparing transaction documents.