Baltic M&A Overview 2024: Market Regains Momentum and Investor Confidence
M&A activity in the Baltic states throughout 2024
The Baltic M&A market rebounded in 2024, mirroring a broader recovery across Europe as deal activity picked up amid stabilizing inflation and easing interest rates. With investor confidence improving, companies were turning to acquisitions for growth and consolidation, leading to a surge in high-value transactions.
In the Baltics, domestic buyers were driving more deals, while foreign investors remained active, particularly in energy and technology sectors, reinforcing the region’s attractiveness for long-term investment.
All three Baltic states on the rise
Latvia’s M&A market saw a strong resurgence in 2024, with deal volume up 35% to 77 transactions, reflecting a more confident and growth-driven investment landscape. Local acquisitions played a key role as companies prioritized consolidation and expansion, while foreign investors remained engaged, particularly in energy and IT.
Keeping their position, Estonia remained the most active M&A market in the Baltics, with 138 transactions in 2024, showing a modest recovery from the previous year. The country continued to see a high volume of VC-backed deals, reinforcing its position as a regional hub for innovation-driven investments. Similarly to Latvia and Estonia, Lithuania saw a rebound in M&A activity in 2024, with 126 transactions.
Baltic M&A focuses inward as foreign investors return
In 2024, local transactions in the Baltics strengthened while outbound activity declined. Pan-Baltic activity remained steady, highlighting ongoing regional integration efforts. Inbound investments surged, making up 32% of total transactions, as foreign investors showed increasing confidence in the region.
Exit activity in the Baltics increased to 10 deals, up from 8 last year but still far below 2022’s 18. The slower pace of divestments suggests greater regional stability, as geopolitical tensions ease and investor confidence strengthens, reducing the urgency for asset offloading experienced in 2022 due to Russia’s invasion of Ukraine.
Inbound investments were driven by growing foreign investor confidence in the Baltic market. The UK led activity with 14 deals, followed closely by Germany, the US, and Sweden, with both the UK and Sweden seeing notable growth. 83% of inbound deals came from European entities, however, notable deals also came from outside Europe: India’s Xpro expanded its presence by acquiring Lithuania-based flexible packaging manufacturer Umaras and China’s PAG Asia Capital acquired a majority stake in Latvia’s Food Union.
Leading industries in the Baltics in 2024
Information Technology saw a 39% increase, rebounding strongly after last year’s slowdown as investor confidence in digital transformation returned, while industrials declined by 16%, as manufacturing and supply chain investments remained strong, but geopolitical uncertainties and economic pressures led to more cautious dealmaking.
Energy increased by 9%, with steady investment in renewable projects and infrastructure, while the services sector declined by 8%, but demand for business support and consulting remained steady, keeping it relatively stable. The consumer sector grew by 6%, supported by improving consumer sentiment.
The healthcare sector grew by staggering 79% in 2024, driven by acquisitions in medical services, diagnostics, and infrastructure, and real estate and construction saw significant growth in deal volume, while the financial sector dropped sharply, falling out of the top ranks from last year.
Largest announced transactions in 2024
M&A activity in 2024 has been defined by a resurgence in large-scale deals. The year’s largest transaction saw Vinted undergo a €340 million secondary share sale, valuing the company at €5 billion—one of the highest in the region. Renewable energy remained a key focus, highlighted by Latvenergo’s €200 million wind park acquisition in Lithuania and Baker Hughes’ €140 million investment in Elcogen, signalling strong momentum in green technology. Real estate also played a significant role, with EfTEN Capital’s €129 million shopping centre acquisition marking a major investment in Baltic commercial properties.
Largest transactions per industry
In the largest domestic investment in the Baltic startup ecosystem this year, Lithuanian Vinted secured a TPG-led €340m investment, while in the energy sector Latvenergo acquired 100% in the Telšiai project of Utilitas Wind. In the industrial sector Baker Hughes made a strategic investment - Elcogen closed its current funding round, raising overall €140m, while in real estate EfTEN with a group of Estonian investors acquired Kristiine Centre in Tallinn for €129m.
In transportation Infortar acquired additional 22% shares of Tallink Grupp for €89 million, increasing its shareholding to 68%. In a deal between two foreign owners, Munich Re’s ERGO expanded their Baltic reach with €80m acquisition of Nordic insurance group Gjensidige Forsikring's regional subsidiary ADB Gjensidige. The European Bank for Reconstruction and Development (EBRD) committed equity investment of €30m for projects already under development in Vilnius and Kaunas districts, and in services industry Akola Group acquired 100% of the shares of Latvian Elagro Trade, formerly owned by agricultural holding Agrolats.
In outbound transactions utilities sector was led by Infortar subsidiary Eesti Gaas which acquired a 100% shareholding in EWE Polska for €120m, while in service industry the Lithuanian group Apex Alliance in partnership with Paval Holding acquired the Waldhaus Flims Wellness Resort in the Swiss Alps. Hume AI raised a €46m Series B round led by EQT Ventures and joined by investors, including Jaan Tallinn's Metaplanet. Metaplanet invested also in a healthy skincare brand OneSkin, which raised €19m.
2024 deals spotlight
Strengthening market leadership through jewellery retail consolidation
Grenardi Group acquired 100% stake in Goldlight, a well-known jewellery retail brand operating in Riga, Latvia. Oaklins’ team in Latvia acted as the M&A advisor to the founder of Goldlight in this transaction.
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Private equity exit from a Baltic refrigeration solutions provider
Livonia Partners, a pan-Baltic private equity fund, sold its 33.34% stake in Freor LT, to ARB Investments, holding company owned by the majority owner and CEO of Freor LT. Oaklins’ team in Lithuania acted as the exclusive sell-side advisor to Livonia Partners in this transaction.
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Advising on a pan-Baltic deal of flight claims management companies
The founders of Estonian-based Lennuabi sold the company to its Lithuania-based peer Skycop. Oaklins’ team in Estonia advised the shareholders of Lennuabi.
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Creating a Baltic champion in wooden windows
Arbo Windows, a leading Latvian producer of wooden windows and doors, has acquired Arlanga Wood, creating the largest wooden windows producer in the Baltic states. Oaklins’ team in Latvia acted as the exclusive buy-side M&A advisor to Arbo Windows throughout the transaction process.
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Baltic M&A League Table by announced deals
We are thrilled to announce that in 2024, Oaklins once again secured its position as the most trusted advisor in the Baltic region, ranking #1 by the number of announced deals. With 10 successful transactions (7 sell-side and 3 buy-side), we surpassed last year's performance by closing 3 additional deals. We are deeply grateful for the trust our clients place in us and remain committed to delivering even greater success in 2025!
Download the full 2024 Baltic M&A Overview
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