The deal is expected to be finalized by the end of 2025, subject to approval from the Competition Authority and fulfillment of other contractual conditions.

Current shareholders, meaning the management team, will retain a combined 25 percent stake, Invalda INVL said.

According to the commercial register, Eesti Keskkonnateenused's management board members and beneficial owners are Mihkel Õnnis, Argo Luude and Bruno Tammaru.

CEO Luude said that bringing on board the largest private equity fund in the Baltics would open up greater opportunities to successfully implement the company's growth strategy.

"The group is currently working on a major hazardous waste incineration project that will increase existing capacity from 2,000 to 15,000 tons per year. We also see potential to expand our sorting and recycling capacity to contribute even more significantly to Estonia's circular economy goals," Luude said.

Eesti Keskkonnateenused operates in waste management and municipal services, including the collection and treatment of household, construction, bio and hazardous waste, as well as street maintenance. The group's consolidated revenue in 2024 was €77 million, with approximately 800 employees.

Deimante Korsakaite, managing partner at INVL Private Equity Fund II, said the transaction confirms one of the fund's core strategies: investing in leading Baltic companies with high growth potential. "This is our private equity funds' first investment in Estonia. We believe that investing in and developing the circular economy is vital for sustainable growth across the Baltic region," she said.

Invalda INVL noted in a press release that INVL Private Equity Fund II aims to identify growth opportunities in the Baltics, Poland, Romania and the wider European Union. The fund's strategy is to invest between €10–60 million in companies across different sectors with the potential to become regional leaders in their field, focusing on acquiring majority or significant minority stakes.

INVL Private Equity Fund II, which closed its first round at €305 million in February 2025, is the largest private equity fund in the Baltics.

The fund is managed by INVL Asset Management, part of the Invalda INVL Group, which has more than 30 years of experience. The group's companies manage or control €2 billion worth of assets across various investment strategies, including private equity, forest and agricultural land, renewable energy, real estate and private debt. In addition, the group provides family office services in Lithuania, Latvia and Estonia, manages pension funds in Latvia and invests in global third-party funds.

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