OÜ Polar Glass which is a subsidiary of Barrus, a manufacturer of glued laminated timber components, has concluded a purchase agreement for acquiring OÜ Baltiklaas, a member of the Saint-Gobain group operating in manufacturing and sales of building materials.
As a result of the transaction, Polar Glass will acquire sole control over Baltiklaas in the meaning of the Estonian Competition Act, as indicated in the notice of concentration. The parties have agreed not to disclose the transaction price.
The background of the transaction is that Saint-Gobain has made the strategic decision to exit the business line of manufacturing and sales of building glass in various countries, including Estonia. Barrus on the other hand intends to continue and expand its operation to production directions indirectly related to its current main activity.
In November last year, Barrus opened its new factory which cost 10 million euros. "While the new glued laminated timber factory was an investment in Barrus’ main business, the purchase of Baltiklaas is a purely financial investment for us. Baltiklaas will continue its operation in Tartu and Mäo while Barrus continues its operation near Võru," Barrus’ CEO Martti Kork commented in the press release.
The transaction requires an approval from the Estonian Competition Authority which Barrus hopes to receive at the latest in February.
After closing the transaction, both Barrus and Baltiklaas will continue their respective operations separately, the current trademarks remain in use and the agreements with employees, clients and cooperation partners remain in force.
Polar Glass is a subsidiary of Barrus which was established specifically for this transaction. The main activity of Barrus consists of manufacturing of glued laminated timber components for window and door manufacturers, its secondary activity is sales of sawn timber and sawdust from the production process. Barrus has over 300 employees and the company’s sales revenue of 2020 exceeded 50 million euros. Approx. 80 per cent of Barrus’ products are exported, mainly to the Nordic market but also to other countries in Western Europe and the US.
OÜ Baltiklaas is a subsidiary of Saint-Gobain Eesti AS and belongs to the Saint-Gobain group operating worldwide in manufacturing and sales of building materials. Baltiklaas manufactures insulating glass units, laminated glass and hardened glass in Estonia. The products of Baltiklaas are used as an input mainly by window manufacturers and facade builders. Of the company’s total production, approx. 30 per cent is directly exported and its products are also exported to foreign markets by Estonian clients.
Barrus and Baltiklaas are not operating on the same product markets, i.e. there is no horizontal overlap; the companies are not operating on any product market preceding or following the product market where the other party to the concentration operates, i.e. no vertical relationship occurs either. An indirect relationship arises between the parties to the concentration, as both provide different inputs to window and door manufacturers.
Article adapted from the website of Lõuna-Eesti Postimees.
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