BaltCap has signed an investment agreement of EUR1.5m with Latvian cosmetics producer and franchise developer Stenders.
Stenders has 225 franchise stores in 23 countries worldwide. It is particularly strongly represented in China and Russia, with revenues from these markets comprising more than half of the company’s turnover. The product assortment of Stenders includes more than 320 bath, body, face and hair care products.
“Producing innovative high quality articles, Stenders has become one of the strongest brand based businesses in Latvia and is now widely represented in the world. We see large potential for fast development in the markets of CIS and Asia by continuing the path that Stenders has taken. We are honoured to be part of the shareholders and support the management’s ambitious growth plans,” says Astra Neimane, investment director of BaltCap.
“We have been trying to attract an investor for some time now, in order to allow the company to achieve the ambitious plans of conquering new markets and new product development more successfully and efficiently. But all that requires big investments. This is one of the first steps of attracting investments since Stenders aims to reach the vision of becoming a well-known cosmetics brand outside Latvia,” says Stenders chief executive and board member of Jānis Bērziņš.
BaltCap investment fund is co-financed by investments of private investors and European Union structural funds administered by Latvian Guarantee Agency (LGA).
Ivars Golsts, director of LGA, says: “We are particularly happy with Stenders’ development which has now resulted in attracting investments and allows the company to successfully continue its progress. Stenders and LGA have a long-term co-operation experience, both via credit guarantee and export insurance instruments; therefore, we are glad that Stenders, being a company with high growth and export potential has managed to attract financing from a local venture capital manager.”