Bergs grows within windows and doors through acquisition in Poland
Bergs Timber AB (publ) has today acquired the Polish company PPUH PINUS SP.Z O.O. ('Pinus'). The company manufactures bespoke windows and doors in the premium segment and had a turnover of approximately SEK 80 million in 2021. The acquisition enables continued expansion in Bergs's Joinery product area.
PRESS RELEASE
July 5, 2022
The transaction in brief
Bergs acquires 100% of the shares in Pinus and the sellers are the founders of the company. The former owners will remain with the company for a transitional period.
Background and rationale
Bergs manufactures, markets and sells high-quality windows and doors through its subsidiaries Performance Timber Products Group (“PTPG”) in the UK and Byko-Lat in Latvia. The acquisition of Pinus will add additional production capacity to the Group. In combination with the recent expansion of the Group's factory in Latvia, supplies are secured for the planned expansion in the UK and the rest of Europe. It also creates opportunities for future production synergies between the Group's various units. After the acquisition, Bergs’ sales of windows and doors total approximately SEK 600 million.
About Pinus
Pinus was founded in 1991 and is a reputable manufacturer of high-quality windows and doors. The company is located in Brzeg, outside Wroclaw in southwestern Poland, and has been run by the original founders since its inception. The company has a modern and purposeful machine park and employs about 100 people. Pinus has been a supplier to Bergs’ subsidiary PTPG in the UK for over 20 years. Most of the sales today take place to PTPG, but Pinus also has sales to customers in Poland and Germany, among other places. Read more on the company's website https://pinus-okna.pl/en/
Financial consequences for Bergs
The acquired business will be reported in Bergs as of today's date and included in the Joinery product area. The acquisition is expected to strengthen the margin for the Joinery product area and make a positive contribution to earnings per share already during the current year.
The purchase price for the shares amounts to approximately SEK 36 million and is paid in cash via Bergs’ existing cash and credit facilities.
“Pinus fits in very well with Bergs, both operationally and strategically. Our determined commitment in high-quality windows and doors continues, where we see good growth opportunities in several markets,” says Peter Nilsson, President and CEO of Bergs.
For further information regarding this press release, contact:
Peter Nilsson, President and CEO, +46 (0)70 315 09 27 or Anders Marklund, CFO, +46 (0)70 284 47 96.
About Bergs
An international wood products Group
The Bergs Group consists of independent subsidiaries, with clear responsibilities for results, that develop, produce and market processed wood for various applications.
With years of experience in wood and a great deal of competence in processing, Bergs promotes building a sustainable society based on renewable raw materials from sustainably cultivated forests in the Baltic Sea region.
Operations are conducted in Sweden, Estonia, Latvia and the UK, and the Group’s products are sold in some 20 countries. The largest markets consist of Scandinavia, the Baltic countries, the UK and France. The head office and Group management are located in Sweden.
The company’s share has been listed on Nasdaq Stockholm since 1984.
