Some months ago TARK transaction team advised AS Barrus, Estonian largest manufacturer of laminated wood components, on the acquisition of Baltiklaas (the largest manufacturer of glass packages, laminated glass and tempered glass in Estonia) from Saint-Gobain group. Last week the subsidiary of AS Barrus OÜ Polar Glass (Baltiklaas), and AS Klaasimeister owned by Livonia Partners signed a merger agreement to jointly push for faster growth in new markets.
The transaction is subject to the approval by the Estonian Competition Authority.
According to the merger agreement, the current owner of AS Klaasimeister, the Baltic private equity fund Livonia Partners, will become the majority shareholder of the joint venture, and AS Barrus, the current owner of Polar Glass, will continue as a minority shareholder.
The aim of the merger is to expand the product offering and customer portfolio and to grow into a major provider of building glass solutions in Europe.
Companies justify the merger as a way to grow faster in new markets: According to Karla Agana, CEO of Klaasimeister, the company has recently entered the UK market, and also sees growth opportunities in wider Europe, as well as North America. The new group will have a total of around 400 employees and four factories, three in Estonia and one in Latvia. Martti Kork, the chairman of the management board of AS Barrus, said that cooperation is the best way to expand in the international market and offer customers complete glass solutions.