BaltCap and Draugiem Capital invest in Pepi Rer

Aug 11, 2023

BaltCap and investment company Draugiem Capital have invested in the Latvia-based multi-sector production company Pepi Rer, best known for its soft-play toy brand Iglu, floor insulation brand ProVent, construction and packaging materials, to boost the global expansion of the business. After this transaction BaltCap and Draugiem Capital will become the majority shareholders of the company.

Pepi Rer, founded in 1998 and based in Valka, exports 90% of its sales to more than 40 countries all over the world. After the introduction of the Iglu brand in 2015 the company more than doubled its revenue reaching a turnover of €13,5 million and profit of €1,7 million in 2022. The company employs 200 people. 

“The greatest asset of our company is the people who work here, many of whom have been with us since day one,” Lucāns adds.

After the completion of the transaction, a new supervisory board will be formed with BaltCap investment directors Sandra Aile and Pēteris Treimanis, as well as Draugiem Capital investment director Dāvis Siksnāns serving as board members.

“Pepi Rer’s success has been achieved with dedication and persistent work of the company’s founders, management team and employees. We deeply appreciate their contribution and see a great opportunity to continue this growth story. Our ambition is to make the company a leading player in its niche in the USA and other export markets, using BaltCap’s 25 years of experience in taking more than 100 local companies to the international level,” says BaltCap investment director Sandra Aile.

The acquisition of Pepi Rer is the second joint investment of BaltCap and Draugiem Group. In 2012 BaltCap invested €0.5 million in Draugiem Group company Vendon. After joint development, the company was acquired in 2022 by Spain’s most prominent international technology company Azkoyen. Without up to €4 million earnout part, the Vendon deal size reached €9.3 million.

Source: Labs of Latvia

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