SEB in Latvia has also extended a credit and guarantee facility of 150,000 euro to promote further development of the Amica businesses in Latvia and Estonia.
Fazer, a Finnish food services, bakery and confectionary company, made a strategic decision in 2010 to dispose its entire holding in Amica’s Estonian and Latvian businesses to the members of management. The parties have now agreed on the acquisition using a mix of financing from SEB, personal funds and money attracted from private investors.
Kristaps Strazds, head of SEB’s Local Corporate Banking department in Latvia: “Recently, mergers and acquisitions have started to take place in Latvia on a rather regular basis. However, management buy outs (MBOs) are far less frequent. The transaction with Fazer Amica is an important sign for the economy and the banking sector in general, and we are pleased that SEB has provided funds for such a significant transaction, which proves again that the bank is ready to extend support to the economy and the business community of Latvia.”
“We highly appreciate the trust credited to our team,” comments Aigars Kaugars, Executive Director of Fazer Amica Latvija. “The confidence of Fazer Group and the long-term experience of our team in the catering and restaurant business in the Baltic region represents a guarantee to our financiers and clients that we will continue developing this business successfully in Latvia and Estonia.”
Under the terms of the deal, it’s Fazer Amica Latvija that acquires the Estonian part of the business.
SEB in Latvia is one of the largest supporters and lenders in the Latvian business environment. In the first quarter of 2011, the volume of newly issued corporate loans amounted to 35.1 million Latvian lats. Compared to the same period last year, the volume of new loans extended to legal entities has increased by 22 per cent.