2024 03 28
Grigeo AB, one of the largest paper and wood industry groups in the Baltic States, has successfully completed the acquisition of one of the mills of Głuchołaskie Zakłady Papiernicze sp. z o.o (GZP), a Polish producer of tissue paper and paperboard.
In compliance with the terms of the preliminary agreement, Grigeo Hygiene UAB, controlled by Grigeo AB, acquired 100 % of the shares of a GZP's subsidiary Niedomickie Zakłady Papiernicze sp. z o.o, which is the operator of a tissue paper business in Niedomice, Poland. The acquisition was financed from funds raised by Grigeo AB.
"This transaction will allow us to strengthen our position in the fast-growing Eastern and Central European market. Optimization of logistics costs will also open up wider opportunities for sales of top-quality products in Germany and other Western European markets," said Tomas Jozonis, CEO of Grigeo AB.
The acquisition of the Polish factory was one of the company's strategic steps, for which it had been consistently preparing. "We acquired not only the factory, but also the expertise. We will be able to combine it with the best production practices we already have in the Grigiskes factory when looking for new solutions and expanding our product range," said Jozonis.
This is the first purchase of the Grigeo AB Group of Companies on the Polish market - a tissue paper mill in Niedomice, 90 km east of Krakow. It currently employs around 170 people and operates a paper machine and conversion lines.
According to unaudited data, the acquired GZP unit had an annual turnover of around EUR 40 million in 2023 and a business value of around EUR 22 million.
Superia acted as financial advisors for Grigeo, Glimstedt and Penteris acted as legal advisors, and KPMG advised on the financial due diligence.
The Grigeo AB Group of Companies employs around 860 people. According to unaudited data, the annual turnover of the Grigeo AB Group of Companies in 2023 was EUR 195,4 million. The Group's EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by EUR 17.6 million compared to 2022 and amounted to EUR 38.9 million. In 2023, the net profit of the Grigeo AB Group of Companies amounted to EUR 29.6 million, which is an increase of EUR 18.0 million compared to the same period in 2022.
The shares of Grigeo AB are listed on the Official List of Nasdaq Vilnius AB.