Porta Finance advises Raglor on acquisition of Avitela

Raglor OÜ, the owner of technology retail group operating under the brand name Euronics in Estonia and Latvia, is planning to acquire UAB Avitelos prekyba, one of the largest electronics chains in Lithuania.

According to Aare Koppel, the CEO of Euronics in Estonia and Latvia, the acquisition aims to decisively strengthen Avitelos prekyba position in the Lithuanian market. Leveraging the expertise and infrastructure of the Estonian group, the goal is to elevate Avitelos prekyba to become the leading technology retailer in Lithuania.

Euronics in Estonia and Latvia is known to have the largest local central warehouse in the Baltic states, ensuring a wide range of products and fast delivery. After the transaction, Avitelos prekyba will also become a part of this setup, benefiting Lithuanian customers with an expanded product selection and competitive pricing.

Avitelos prekyba operates in Lithuania under the brands Avitela and Elektromarkt. Following the completion of the transaction, the business operations will continue as is, with stores and online shops operating under the Avitela and Elektromarkt names.

“We have been selling consumer electronics and household appliances in Lithuania for almost 30 years. Currently 26 stores in 18 towns in Lithuania operate under Avitela and Elektromarkt trade marks. The planned transaction will increase competitiveness of companies to be acquired and will lead to the best consumer electronics and household appliances product offering for customers,” noted Algirdas Mitalas, CEO of UAB Avitelos prekyba.

As part of the transaction, the Estonian and Latvian group will also acquire UAB Serviso Kontraktų Centras and UAB Emtoservis companies within the same group as Avitela, providing after-sales service and extended warranty insurance for electronic devices and household appliances.

Euronics, operating with Estonian capital, has 25 years of experience in the field of electronics retail and represents approximately 400 official brands in Estonia and Latvia. This fact ensures an improved after-sales service for Lithuanian customers as well.

The transaction is subject to approval by the Competition Council of Lithuania. Until the approval of the competition authority, all companies will continue to operate independently and in their current manner.

Porta Finance acted as an exclusive financial adviser to Raglor OÜ. Porta Finance advised Raglor OÜ on the target valuation, coordination of due diligence workstreams, and negotiations with the sellers.

Further information:

Karl-Erik Kodu
Partner, Porta Finance
Tel: +372 602 5015
karlerik.kodu@portafinance.com