Estonia, EU – Baltic States, Financial Services, Industry, Investments, Technology

BPM Mezzanine Fund SICAV-SIF, SCA has provided working capital financing and refinancing capital to Eskaro AS. Established in Tallinn in 1993, Eskaro has production and commercial enterprises in six countries and is one of the leading paint producers in Estonia, Finland, Belarus, Russia and Ukraine.

"Eskaro's brands hold strong positions in the DIY segment in all of its key markets: Estonia, Russia, Ukraine and Belarus. The company has proven to be able to generate stable cash flows over a long period of time. The project has significant growth prospects and export potential matching the main objectives sought by BPM. The management team has extensive experience in the sector and a long career in the company," said Priit Veering, partner of BPM Capital.

Andres Assor, member of the board of Eskaro, described the transaction as an important step forward, providing the company with financial stability and strength for further growth. Attracting a strong financial partner allows Eskaro to continue gaining market share in the countries where it operates, he said.

BPM Mezzanine Fund, managed by BPM Capital, is a 70-million-euro fund that is planning to invest about one-third of its assets in Estonian companies in five years. BPM was originated through the Baltic Innovation Fund (BIF) initiative created in collaboration between Estonia, Latvia, Lithuania and the European Investment Fund (EIF).

Eskaro manufactures over 400 categories of products including paints, prime coatings, varnishes, wood protection liquids, putty, glues, and solvents. The company's annual revenue totaled 31 million euros in 2015.