European Bank for Reconstruction and Development invests in Polish cosmetics giant Bielenda

30 Apr 2024 --- The European Bank for Reconstruction and Development (EBRD) makes a €33.9 million (~US$36.3 million) investment via an indirect minority stake in Polish cosmetics company Bielenda. The transaction is handled by its holding company, Innova Central Holding, which is owned by Innova/6, a private equity fund in which the EBRD is a limited partner.

The investment facilitated Bielenda’s acquisition of two complementary Polish skin care brands, Tolpa and Miya, improving its market position and product portfolio. The company seeks to leverage its investee’s digital skills to improve operational efficacy.

“We are pleased to continue our strong cooperation with Innova Capital and support Bielenda with this equity injection to drive its mergers and acquisitions strategy. These strategic acquisitions will allow Bielenda to benefit from synergies with Miya and Tolpa to become a much stronger player and an attractive target for potential strategic buyers in the future,” says Tamas Nagy, EBRD co-head of Private Equity.

Elisabetta Falcetti, EBRD head of Poland and the Baltic States, adds: “Our investment in Bielenda alongside Innova/6 is a perfect example of how the EBRD adds value to the Polish market. It supports the growth of the private equity ecosystem in Poland and strengthens a key player with a robust ESG mandate.”

“We are delighted that Bielenda has committed to ambitious ESG targets for its business operations, production and packaging. As part of the EBRD’s investment, Bielenda has also pledged to extend equal opportunities and best practices to its staff, fostering inclusive human capital development.”

Boosting Poland’s cosmetics market
Bielenda’s products are available across approximately 60 countries, providing skin, body and hair care products for men and women.

EBRD’s investment facilitated Bielenda’s acquisition of Tolpa and Miya.“The EBRD’s investment confirms Bielenda Group’s position as one of the leaders in the Polish cosmetics market,” notes Marek Bielenda, CEO of Bielenda Kosmetyki Naturalne. “The support in the acquisition of the Tolpa and Miya brands will allow us to develop even more dynamically, diversify our portfolio more strongly, increase our market share and strengthen our investment in innovation.”

“We consider the decision on the partnership as a sign of the attractiveness of the Polish cosmetics market, in which we are a key player, and an expression of trust in the Bielenda Group’s development strategy, implemented together with Innova Capital.”

Leszek Muzyczyszyn, senior partner at Innova Capital, adds: “Through strategic investments, Bielenda has consolidated a number of other companies and brands, with the recent acquisitions of Tolpa and Miya solidifying its market leadership. This collaboration exemplifies our dedication to fostering Bielenda’s growth and underscores our shared vision for sustainable development in the sector.”

Innova Capital is a Polish private equity adviser that invests in majority buyouts in mid-sized businesses in central and eastern Europe. It has reportedly invested around €1.3 billion (∼US$1.4 billion) in nearly 70 companies across ten countries. Meanwhile, the EBRD says it has invested more than €14 billion (∼US$15 billion) in 519 projects.

Edited by Venya Patel

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