RIGA - East Capital has announced that, through its private equity fund, the East Capital Amber Fund, it is investing in the Baltic's fast growing beauty service market, and is considering expansion into the Russian market as well.
The fund has set up Baltic Cosmetic Holding, the first Pan-Baltic holding in beauty retail. The vehicle will hold stakes in Kolonna, Latvia's largest chain of beauty salons, hairdressers, cosmetic retailers and fitness centers, as well as Lithuanian beauty market leader Sarma.
The transaction, which has a value of 5 million euros, will combine equity finance from the East Capital Amber Fund and co-investors.
"Strong economic growth in the Baltic states and in Russia is bringing about an increased consumption rate, which in turn leads to double-digit annual growth on the market for cosmetics and beauty services," said Kestutis Sasnauskas, managing director of East Capital Private Equity AB.
A leading independent asset manager, East Capital actively manages over 600 million euros, and has a private equity amber fund of 10 million euros.