Key Takeaways
- Sector: Environmental Infrastructure & Services.
- Geography: Estonia.
Analysis
INVL Private Equity Fund II has agreed to acquire a 75% stake in Eesti Keskkonnateenused (EKT), the largest waste management company in Estonia. This marks the fund’s first investment in the country and expands its regional footprint in the Baltic private equity landscape. The remaining 25% ownership will be retained by EKT’s management team.
EKT reported revenues of €77 million in 2024 and employs around 800 staff across its operations. The company offers a comprehensive portfolio of municipal and environmental services, including waste collection, hazardous and construction waste management, bio-waste processing, recycling and street cleaning. EKT is also developing a major hazardous waste incineration facility to boost annual capacity from 2,000 to 15,000 tonnes.
Argo Luude, CEO of EKT, emphasized that INVL’s entry will help implement the group’s ambitious growth plans, especially in areas that support Estonia’s circular economy goals.
Vytautas Plunksnis, Partner at INVL Private Equity Fund II, highlighted the firm’s experience in waste management and value creation. Deimantė Korsakaitė, Managing Partner of the fund, added that the acquisition fits within INVL’s strategic focus on market leaders in the Baltics, Poland and Romania with high growth potential in sustainability-focused sectors.
The transaction is expected to close by the end of 2025, pending approval from the Estonian Competition Authority. Advisors included EY, EY-Parthenon, Sorainen and Nomine Consult for INVL, while Eversheds Sutherland advised the sellers.
This acquisition strengthens INVL’s position in the environmental services sector, building on its earlier investment in Eco Baltia, the Baltics’ largest environmental management group. The move further supports the firm’s commitment to the circular economy and sustainable infrastructure.
The transaction aligns with broader private equity trends, as firms increasingly target waste management and recycling companies to tap into climate-focused infrastructure growth. Recent comparable transactions include:
- KKR’s investment in a Dutch waste-to-energy operator to expand European processing capacity.
- Blackstone backing an Italian platform consolidating regional waste and recycling firms.
- Macquarie acquiring a stake in a French utility company focused on modernizing water and waste infrastructure.
These investments highlight increasing recognition of environmental services as a resilient and growth-oriented sector, especially as nations implement stricter green regulations and circular economy targets.