EstVCA member firm BPM Mezzanine Fund announced of its second exit as it's portfolio company Eskaro group will be acquired by Flügger group.
BPM Mezzanine Fund SICAV-SIF, SCA (BPM) invested in one of the leading paint producers Eskaro AS in September 2016. The investment was used for working capital and refinancing of part of existing liabilities. The company was established in Tallinn in 1993. Today, the company has production enterprises in Estonia, Finland, Belarus, Russia, and Ukraine.
On 24th November 2020 Flügger group A/S entered into an agreement to acquire 70% ownership in Eskaro group. The acquisition is awaiting approval by competition authorities. Approvals are expected to be granted in I quarter 2021.
Commenting on the deal, Partner of BPM Capital, Mr. Priit Veering
, noted that Eskaro’s management team led by Eskaro’s co-founder Mr Igor Chumakov has done brilliant work by building up solid platform in the company’s target markets and growing Eskaro’s revenue by more than 15% annually since 2016. The combined forces of Eskaro and Flügger are expected to generate significant synergies in the future. BPM is happy with the results and we would like to thank Eskaro’s management team for dedicated effort in developing the company. There are many good days to come for Eskaro as part of Flügger group.
CEO of Eskaro, Mr. Igor Chumakov commented: “We worked 4 and half years together with BPM team and appreciate their responsiveness, professional approach, and flexibility. We look forward to co-operation with Flügger. As part of a group, we’ll have the opportunity to exploit synergies – in particular sales and solutions to large builders’ merchant chains – but also in the area of production and purchase of raw materials. We look forward to continuing our expansive growth journey with the backing of a strong group.”
Read more on the transaction:
More information about BPM Capital
BPM Capital (www.bpmcapital.eu
) is an independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin Reinson, Paweł Zabrzycki and Priit Veering. BPM is supported by prominent international and domestic institutional investors. BPM was originated through the Baltic Innovation Fund initiative created by cooperation between Estonia, Latvia, Lithuania and the European Investment Fund. Portfolio companies include MarkIT, OC Vision, Eskaro, DEAC (exited in August 2020), Corle, Tahe Outdoors, DenEesti, Smiltenes Piens, Zoo Factory, iDS. More information about Eskaro
) operates six factories in five countries (Ukraine, Russia, Belarus, Estonia and Finland) as well as 15 distribution centres from which goods are distributed for export. Eskaro’s plants produce more than 30 million litres of products annually. With expected annual revenue of 56 million EUR in 2020 Eskaro’s factories manufacture over 400 categories of products, paints make up about half of the group’s revenue, primers/priming oil 10%, wood stains 5%, and other categories such as varnish, glue, adhesives and sealants approximately 35%.
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