Published on: 15 Feb 2019
Livonia Partners has acquired 60 percent equity stake in Fenestra to support company’s fast growth in export markets. The acquisition has been approved by Estonian Competition Authorities.
According to Rain Lõhmus, founding partner of Livonia Partners, Lauri Laast, Riho Prass and their team’s track record has been impressive. „Fenestra is a professional and well-managed company with great growth prospects perfectly fitting within our investment strategy. Window market as a whole is stable and growing only 1-2% per year, whereas, Fenestra has grown 24% per annum over the last four years under the leadership of the current management team which will continue to hold a significant 40% minority share of the company,“ Lõhmus explained.
„Livonia will be working closely with the company to identify and execute on already existing initiatives and new business opportunities. In addition, we will enhance focus on strategic dimension, as well as support company’s growth in existing markets and entering into new geographies. We see many ways how Livonia can provide significant value-add and contribute to company’s future growth with our team’s experience in various manufacturing sectors and export-focused businesses, “said Lõhmus.
Lauri Laast, the CEO and shareholder of Fenestra, said that just financial resources are not enough for reaching ambitious targets. „It is equally important to have a strategic partner with complementary skill set and experience. Livonia Partners team has vast worldwide experience and expertise in building businesses, complementing Fenestra management’s extensive sector experience and market know-how. We believe that by realizing the synergies from our partnership we will be able to bring the business to a new level,“ explained Laast.
Laast added: „Fenestra has a strong management team, great employees, efficient production and high-quality products. And we chose Livonia to support us in the next growth phase due to their international and wide-ranging experience that is necessary for conquering new markets.”
Fenestra is seventh investment for Livonia Partners Fund I, whose strategy is to invest in medium-sized companies in the Baltics that are professionally-managed and growing. In 2018 it acquired stake in Freor, Lithuanian-based producer of commercial refrigeration equipment, and invested in Scoro, Estonian-based developer of business management platform. in 2017 it invested in IT network and security firm Santa Monica Networks in Latvia and Lithuania as well as in Cgates, a Lithuanian provider of cable television and internet services. In 2016 the funds acquired Ha Serv (now Thermory), an Estonia-based thermowood and sauna materials manufacturer, and Hortes, Estonia’s leading home and gardening retail brand.
Livonia Partners is the only dedicated private equity investment firm in the Baltics, currently managing €83 million as part of the Livonia Partners Fund I. Run by founders Kaido Veske, Kristīne Bērziņa, Rain Lõhmus, and Mindaugas Utkevičius, its investors are domestic and international financial institutions. Livonia was partly originated through the Baltic Innovation Fund (BIF), a common initiative of Estonia, Latvia, Lithuania and the European Investment Fund.
Fenestra develops and manufactures wooden-aluminium windows and balcony doors, exporting more than 70% of its production. The main export market for the company is Scandinavia. Lauri Laast, Riho Prass and Martti Siitam purchased the company from bankrupt family-owned enterprise in 2014. In 2014 Fenestra’s consolidated revenue amounted to €7.3 million and in 2018 estimated revenue reached €16.5 million. Fenestra employs more than 100 people. The company is based in Tallinn, Estonia.
For further information contact:
Rain Lõhmus, Partner, Livonia Partners,
Lauri Laast, CEO, Fenestra,