Practica Venture Capital fund managed by Practica Capital invests EUR 1.45 million (LTL 5 million) in Lithuanian UAB MCT. The funds will be used for the development, launch and operation of a modern medical rehabilitation centre in Druskininkai, a popular health resort in southern Lithuania. The centre will open in the second half of 2015.
The overall investments in the new rehabilitation centre amount to EUR 7.5 million (LTL 26 million). Besides investments by the current shareholders and the fund, an additional EUR 2 million (LTL 7 million) long-term bank financing and EUR 2.2 million (LTL 7.6 million) EU structural funds aid, administered by the Lithuanian Business Support Agency under the Ministry of Economy, has been attracted to finance the project.
The current shareholders of MCT have extensive experience in private healthcare and rehabilitation businesses, including a chain of medical diagnostics clinics Medea, Baltic-American Clinic, etc.
“The centre will be one of the most modern rehabilitation clinics in Lithuania providing quality medical rehabilitation and wellness services for the local and foreign clients. We are very pleased to contribute to the development of modern healthcare system and medical tourism in Lithuania as well as continued development of Druskininkai resort” - Vytautas Dambrava, one of the shareholders and managers of MCT said.
Partner at Practica Capital Silvestras Tamutis said “Druskininkai continues to be the most attractive and coherently developed non-seaside wellness and recreational tourism centres in Lithuania. The number of visitors, both local and foreign, has been impressively growing over the past 14 years there. The new medical rehabilitation centre will add to the service offering and quality in the resort. With experienced shareholders as well as other private and public capital providers participating in the project, it is another example of a private and public partnership in healthcare and tourism sectors in Lithuania.”
The Fund was advised by Raidla Lejins & Norcous acting as a legal adviser and Moore Stephens Vilnius as accounting adviser during the deal. MCT was advised by the local investment bank IFP Corporate Finance with SGKA Legal and Motieka & Audzevičius acting as legal advisers.
About MCT:
UAB MCT is currently developing a 90-room and 177-medical rehabilitation centre in Druskininkai, a wellness resort in southern part of Lithuania. The centre will operate 35 procedure rooms, health, athletic gymnastics, fitness and conference halls, SPA zone and a restaurant.
About Practica Capital:
Practica Capital is a venture capital firm established in 2011 by investment professionals and entrepreneurs who exited their businesses. The firm manages EUR 6m Practica Seed Capital fund and EUR 15.7m Practica Venture Capital fund, both established under the JEREMIE initiative, managed by EIF and financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme of Lithuania. Funds provide early- and later-stage financing to Lithuanian SMEs focusing on innovative and high-growth potential businesses. Practica Capital also runs business accelerator Startup.lt, which helps young businesses to realise high growth potential. By the end of May 2014, Practica Capital signed 25 investments for EUR 7.5 million in 21 portfolio company from different sectors. For more information visit www.practica.lt and www.startup.lt.
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