See below AS TMB’s press release about purchase of Finnish precast concrete manufacturer Betonimestarit OY.
AS TMB, one of Estonia’s biggest manufacturers of concrete elements, has purchased Finnish concrete element manufacturer Betonimestarit OY. The merger will result in a company with an annual turnover of close to 100 million euros and factories in Finland, Estonia and Latvia.
According to Jaan Luts, a member of the management board of TMB, the company will become the second-largest manufacturer of concrete elements on the Baltic and Finnish markets, meeting both domestic demand and demand from export markets Sweden and Norway. Whereas Betonimestarit has mainly manufactured elements for the national market, there are now plans for exports to Sweden and Norway from Finland as well.
“It’ll still be up to the Finnish unit to fulfil Finnish orders, but we’re planning on looking much more towards foreign markets,” Luts explained. “Unlike in Estonia, where we only manufacture elements, in Finland we want to offer an all-inclusive service via our partners – everything from design to assembly.”
As a result of the purchase TMB is now the 100% owner of Betonimestarit, although the former owners of the Finnish company continue as minority shareholders in TMB. All four Finnish factories, which employ over 250 people, will now be merged with the group.
“The technological level of the Finnish outfit’s very high,” explained Vallot Mangus, a member of the management board of TMB. “They’re capable of producing really complex concrete elements – stuff that’s never been done in Estonia. So in terms of innovation and efficiency we have a lot to learn from the Finns. At the same time, here in Estonia we have a lot of export experience, which means we can apply that know-how in selling abroad in Finland, making both companies stronger.”
The acquisition was financed by Swedbank. Legal advisor was law firm Cobalt and Swedbank Corporate Finance acted as the financial advisor. According to Mihkel Torim, the head of the Baltic Investment Banking of Swedbank, it is quite rare for an Estonian-owned company to aggressively expand to the Finnish market. “It’s fantastic news, really. TMB is a strong exporter who carried out the next step in it’s long term development strategy towards Scandinavia,” he said, “and I hope we see more of it in the near future for other companies as well.”
The third-largest manufacturer of concrete elements in Finland, Betonimestarit is a trusted brand in its own country. The annual turnover of the family-run business was 45 million euros in 2015. The turnover of the TMB group in the same period was 44 million euros. TMB has subsidiaries offering reinforced concrete element manufacturing and installation services as well as sale in Estonia (OÜ TMB Element), Latvia (SIA TMB Elements) and Sweden (Bygg Element Sverige AB). The parties have elected not to disclose the value of the purchase.
For further information please contact:
Jaan Luts
Member of the Management Board, AS TMB
Mobile: +372 50 93 482
E-mail: jaan.luts@tmbelement.ee
Vallot Mangus
Member of the Management Board, AS TMB
Mobile: +372 50 58 521
E-mail: vallot.mangus@tmbelement.ee
