Eco Baltia vide to expand its activities in street and road maintenance; plans the acquisition of Pilsētas Eko Serviss

In order to expand its activities and continue its development, the environmental management company SIA Eco Baltia vide plans to acquire the road and street maintenance company SIA Pilsētas Eko Serviss. The purchase agreement concluded by the parties, the execution of which requires a merger approval of the Competition Council, provides for the acquisition of 100% in the SIA Pilsētas Eko Serviss, SIA PES serviss and SIA B 124. The documents necessary to complete the transaction have been prepared for submission to the Competition Council. The process is expected to be concluded later this year.

Upon conclusion of the transaction, Pilsētas Eko Serviss will become part of AS Eco Baltia group’s companies in the environmental management segment specialising in street and road maintenance. At the same time, it should be stressed that no changes are planned to the existing cooperation agreements and arrangements for both parties’ clients, partners and employees. If the merger is cleared by the Competition Council by then, the acquisition will be completed at the end of December 2022.

“The last two years of Eco Baltia’s environmental management segment’s activities should be characterised by dynamic growth. During this period, we have not only implemented internal consolidation, but also acquired several companies within the framework of the segment to increase our competitiveness, find new opportunities and become a leader in the Baltics. While our subsidiary Ecoservice is one of the market leaders in road and street maintenance in Lithuania, in Latvia we are planning to develop this service more rapidly with the acquisition of Pilsētas Eko Serviss, promoting synergies also with our Lithuanian subsidiary. Pilsētas Eko Serviss has a very extensive and successful experience in the sector, the necessary technical equipment and a professional team of employees, which creates a very good platform for further growth already as being a part of the environmental management segment of Eco Baltia”, says Jānis Aizbalts, Chairman of the Board of Eco Baltia vide and Head of the Environmental Management at Eco Baltia.

Pilsētas Eko Serviss has been on the market for almost 20 years, and we are pleased to call ourselves one of the leading providers of street and road maintenance services in the Riga and the Greater Riga region. We are happy that the company will be able to continue its development and make new investments in the future, but already as a subsidiary of Eco Baltia vide. For our existing clients and employees, these changes will also be beneficial, because being part of a larger group will allow us to plan our investments in future development on a broader scale and with the involvement of the expertise of the entire Eco Baltia, says Alvis Krauklis, Member of the Board and co-owner of Pilsētas Eko Serviss.

Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board of Eco Baltia: Our strategic objective to develop Eco Baltia as a strong regional leader focusing on sustainable environmental services and recycling is already delivering results – competitiveness and efficiency of our companies are growing, as are consolidated revenue. By expanding our offer in the environmental management segment, we create new value both for customers, employees and investors.

Financing of the transaction is planned by attracting bank funding, and the parties have agreed not to disclose the value of the transaction publicly.

Pilsētas Eko Serviss offers such services as street and road maintenance, water drainage system maintenance and repair works, as well as equipment rental. The company was founded in 2003, and now it is owned by several individuals. In 2021, revenue of Pilsētas Eko Serviss reached 5.7 million euro. The company employs around 80 people.