November 16 (SeeNews) - Swedish holding Pervanovo Invest said it has signed a deal to acquire 85% of Croatian furniture producer Spin Valis, with the intention to acquire all of its shares.
"We are pleased that we have now completed our fifth acquisition in Croatia,” Darko Pervan, CEO and owner of Pervanovo Invest, said in a statement to SeeNews earlier this week.
You can subscribe to our M&A newsletter here
He did not disclose the value of the deal.
The acquisition requires approval from the antitrust authorities.
Spin Valis will be renamed Bjelin Spinvalis.
"The acquisition of Spin Valis will increase our sales in Croatia by 30 million euro ($31 million) to 170 million euro and our operating result for 2022 will exceed 40 million euro,” Pervan said.
Spin Valis is one of Croatia's largest manufacturers of solid oak furniture, and its production also includes elements, glued solid boards and electricity based on bioenergy and solar panels.
Spin Valis in based in Pozega, eastern Croatia, and has 420 employees.
Following the acquisition, the number of Pervanovo's employees in Croatia will reach 2,200.
Pervanovo group owns Croatian wood processing companied Bjelin and Spacva and runs tourism business around Dubrovnik and the Valinge floorings producer in Sweden.
“Our intention is to continue developing Spin Valis as a premium furniture producer and together with our furniture production at Bjelin Spacva, our aim is to become one of the leading furniture manufacturers in Europe in our field,” Pervan said in the statement.
“With our new facility in Ogulin, where we are building the largest wood flooring factory in Europe, our Croatian group of companies will be very efficient and competitive, especially in oak-based products,” Pervan added.
($ = 0.959 euro)