EU-Armenia SME Fund acquires a significant minority stake in Sis Natural

  • The company poised to grow its business and boost exports through the investment
  • Sis Natural is to benefit from enhanced Environmental, Social and Governance (ESG) standards following the transaction

EU-Armenia SME Fund, a private equity fund managed by Amber Capital and sponsored by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), has signed an investment agreement with Sis Natural CJSC – a leading Armenian producer of natural juices and food preserves, operating under well-known brands such as Yan and Sis.

In a milestone private equity deal for Armenia, the Fund is acquiring a significant minority stake in Sis Natural through issuance of new shares, with the proceeds of the investment designated for funding capital expenditures and working capital requirements to expand the company’s operations, increase competitiveness and optimize the balance sheet.

In line with the Fund’s mandate, the investment seeks to create value not only through providing equity capital, but also through the introduction of best-in-class ESG standards, enhancing corporate governance, financial transparency and embedding positive environmental and social impact as part of a sustainable growth strategy for the Company. The investment in Sis Natural is expected to result in additional job creation, promote the strategically important agriculture sector and enhance the export potential of the country.

Anushavan Simonyan, CEO of Amber Capital Armenia, emphasized the importance of the investment for the parties and for the economy. “This is a landmark transaction for the private equity market in Armenia, showcasing significant institutional investment capacity and marking the introduction of best corporate governance standards. The investment is also a reflection of strong confidence in the investment climate of Armenia. We are very excited to partner up with Sis Natural and help to elevate the business to the next level of development.”

Armen Hakobyan, CEO of Sis Natural, said: “Our company has been growing organically for many years and it is now time to take the next step by partnering up with an institutional player. We are therefore delighted to welcome a new shareholder with such excellent reputation. The Fund’s expertise and backing will allow us to grow the business in a sustainable manner, with the appropriate focus and guidance on corporate governance, which is very difficult for SMEs to develop using only in-house resources. We look forward to a successful and fruitful partnership with Amber Capital in the years to come.”