BaltCap and Draugiem Capital to acquire majority in Pepi Rer, developer of the IGLU brand

BaltCap Private Equity Fund III and the investment company Draugiem Capital have signed an agreement to acquire a majority stake in Latvia-based multi-sector production company Pepi Rer SIA to boost the global expansion of the business. Pepi Rer is renowned for its IGLU soft play brand, ProVent floor insulation brand, and production of construction and packaging materials.

The completion of the deal is subject to the approval of the Latvian Competition Council.

Based in Valka, Pepi Rer is a manufacturing and e-commerce company with over 25 years of experience, producing a wide range of polyethylene foam and air bubble film products. Following the introduction of the IGLU Soft Play brand of children’s toys, packaging, and construction materials in 2015, the company has exported 90% of its sales to over 40 countries worldwide, making it one of the world’s leading brands in its segment.

COBALT M&A team provides full legal support to buyers during the transaction, including conducting legal due diligence of the target, preparing transaction documents, assisting clients in the negotiation process, and obtaining merger clearance from the Latvian Competition Council.

The team is led by Partner Guntars Zīle and includes Partners Sandija Novicka and Uģis Zeltiņš, Senior Associates Mārtiņš Tarlaps and Ivo Maskalāns, Specialist Counsel Andrejs Lielkalns and Associate Vadims Zvicevičs.

BaltCap announcement.