COBALT represented a Polish/Austrian fund manager Mezzanine Management in its EUR 7 million investment into UAB Freor LT (Freor), a leading producer of commercial refrigeration equipment in the Baltics, through its third fund Accession Mezzanine Capital III. The investment marks Mezzanine Management’s first in the Baltics and the first Lithuanian PE deal since euro adoption.
The transaction facilitated changes in the shareholders’ structure. The deal was comprised of equity and mezzanine debt and sees Accession Mezzanine Capital III become a minority shareholder in Freor. The founder and CEO, Rytis Bernatonis, will stay on to run the business and retain a controlling stake. The fresh capital will be used to support the company's development and expansion into new markets.
Mezzanine Management is an exclusive advisor to the Accession Mezzanine Capital group of funds, whose total commitments exceeded half a billion euros. The company has been operating in Central and Eastern Europe since 2001 through its offices in Vienna, Warsaw, Bucharest, Budapest and Kiev. The funds’ investment portfolio is diverse and includes over 40 transactions over 10 countries in central and Eastern Europe.
UAB Freor LT was established in 2000. It is headquartered in Lithuania and owns subsidiaries in Belarus and Russia. With a modern production base and quality products, the company is the Baltic’s leading producer of commercial refrigeration equipment.
COBALT assisted in drafting the transaction documents, represented Mezzanine Management during negotiations and advised on other transaction related matters. The team was led by Dr Juozas Rimas, Head of Mergers and Acquisitions Practice Group.