Civinity considers attracting a private equity investor, chooses a financial advisor
2023.10.25
Civinity, one of the largest building maintenance and engineering solutions groups in the Baltics, has selected a financial advisor to consider bringing in a private equity investor in exchange for a minority stake in the company’s newly issued shares. It is considered that such a transaction would be possible with an investment of at least EUR 20 million.
According to Deividas Jackos, the company’s shareholder and Chairman of the Board, decisions on the admission of an additional shareholder are expected to be taken by summer 2024. Whether such a transaction will be concluded will also depend on the availability of an investor with the same view on the company’s strategy.
“Last year, Civinity’s sales amounted to EUR 74.2 million. These results show that we are on a good track, we are growing and we intend to grow further. We forecast sales of EUR 92 million and EBITDA of EUR 6.5 million in 2023. We intend to increase EBITDA by a factor of 3-5 over the next three years. We will use the investments we have attracted to continue our growth through acquisitions,” says Mr Jacka.
According to D. Jacka, companies in the same sector in Europe are valued at at least 10 times EBITDA, and he would expect the same offer from an investor.
“The process of evaluating the investment appraisal has only just started, but we have already received serious interest from some investors,” says Mr Jacka.
According to Mr Jacka, the company sees private equity investment as one of the alternatives for financing future development projects. At the same time, the company is also considering an IPO, without ruling out the Nordic and London stock exchanges.
Baltic Partners has been appointed as the company’s financial advisor for private equity fundraising.
Civinity is one of the largest building maintenance and engineering solutions groups in the Baltics. The company brings together more than 30 companies that maintain 10 million sqm of residential and commercial buildings and have installed several thousand engineering systems in different European cities. In October this year, Civinity successfully launched a EUR 8 million public issue of corporate bonds, with demand exceeding supply by almost EUR 3 million. The funds raised were used to redeem the debt securities placed in 2021.