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Under this agreement, up to 49.99 percent of Grigeo Investiciju Valdymas shares, a company owned by Grigeo, will be acquired by BSGF Salvus, a subsidiary of the fund, in two phases. The transaction is to be completed upon the fulfillment of contractual terms and conditions, subject to the permission issued by the Competition Council.

Grigeo Investiciju Valdymas manages the Grigeo Group's cardboard companies Grigeo Klaipeda, Grigeo Recycling, Grigeo Recycling (Latvia) and Mena Pak (Ukraine), and is also taking over the shares of Grigeo Packaging.

Gintautas Pangonis, president of Grigeo, says the attraction of an investor marks a new development stage in the group's history, as well consistent steps in consolidating its position in the Baltic region.

"We are confident in the growing demand for cardboard and its products and therefore plan to increase our production capacity by three times over the next five years. This strategy also includes the investment of 150 mln EUR in a new paper production plant of secondary raw material. We hope that the INVL Baltic Sea Growth Fund 's investment and team expertise will contribute to both the company's growth and a stronger position in foreign markets," Pangonis said in a statement.

According to Pangonis, the construction of the new factory is estimated to be financed with funds accumulated by Grigeo companies and also by investments of the fund and loans granted by financial institutions. The new paper mill is likely to be established in Lithuania or one of the countries where Grigeo owned companies operate. This project is expected to create up to 200 new jobs.

In 2018, Grigeo’s cardboard business revenues increased by 7.8% to 72 mln euros. Grigeo has already created around 400 jobs via their cardboard business. 

Other Grigeo Group businesses, namely its tissue paper production as well as its fiberboard production at Grigeo Baltwood are not related to this transaction and will continue to work as before. In 2018, the revenues of these businesses amounted to 70.5 mln euros.

Grigeo's shares are quoted on the Nasdaq Vilnius Stock Exchange's Main List.