Abris Capital Partners, a leading mid-market private equity fund for Central and Eastern Europe, is investing in the Pehart group of companies creating the leading independent producer of tissue paper in Romania and Southeastern Europe. The transaction awaits clearance from the Romanian anti-monopoly authorities.

Tissue Paper

Abris Capital Partners invests in Romanian tissue producer Pehart

May 28, 2015. /Lesprom Network/. Abris Capital Partners, a leading mid-market private equity fund for Central and Eastern Europe, is investing in the Pehart group of companies creating the leading independent producer of tissue paper in Romania and Southeastern Europe. The transaction awaits clearance from the Romanian anti-monopoly authorities, as the company said in the press release received by Lesprom Network.

Set up by Mr. Ioan Tecar, the Pehart group of companies has three production facilities where it produces tissue paper and finished goods (toilet paper, kitchen towels and napkins). The group also produces private label products for several retailing groups. Following Abris’ investment, in combination with a contribution of Romanian State aid, a fourth production facility will be opened by the end of this year, so increasing the total group production capacity of tissue paper jumbo rolls to approximately 100 thousand tonnes per annum. The company currently exports most of its production to customers in Central and Southeastern Europe.

As part of the transaction, the European Bank for Reconstruction and Development (EBRD), currently a shareholder in one of the group companies (Pehart Tec SA), will entirely exit its stake. In 2009, the EBRD became a shareholder of Pehart Tec SA and injected capital to support the company's drive to increase its production of tissue products by offering a high-quality alternative to more expensive imports.

Ioan Tecar, who will continue to serve as President of Pehart group, expects the new partnership to strengthen the Company’s position in its market: “We are glad to attract foreign investment to Transylvania, and have Abris Capital as a new partner. Together with Abris, and with their strong backing, we will be able to develop and promote local production, improve our managerial competencies and consolidate our market position. We made these investments with the objective of taking the tissue paper business to a new level of development and, following the commissioning of the upcoming 4th production line, we will reach an annual tissue paper capacity of over 100 thousand tons, thus becoming the largest independent player in the region. I would also take the opportunity to thank and express my appreciation for the EBRD’s support over the last 6 years during which we have developed and modernized Pehart Tec SA; as a result of this cooperation, we have managed to build the Pufina brand to be one of the strongest brands on the market.”