The Elitfönster Group is making its first major Nordic acquisition with the purchase of the Finnish window manufacturer Pihlavan Ikkuna. The Elitfönster Group will own 70% of Pihlavan Ikkuna while the company's founder and CEO, Timo Vannas, will own 30%. In connection with the acquisition Ratos will provide Elitfönster with approximately SEK 70 million as part of the financing for the deal.
Pihlavan Ikkuna, which is Finland's third largest window manufacturer, mainly focuses on manufacture, sale and installation of wooden and aluminium windows as well as balcony doors for residential units. The company's products and services are mainly marketed to housing companies and private homeowners. While the Finnish market has grown by less than 5% per year, Pihlavan Ikkuna's sales, which have benefited among others things from a strong repairs, conversions and extensions market, have grown by approximately 20% per year. In 2004 Pihlavan Ikkuna's sales totalled EUR 35.5 million and pre-tax profit (EBT) amounted to EUR 6.2 million. The EBITA marginal in the same period was 18%. The company has approximately 170 employees and its head office and production are located in Ruovesi north of Tampere.
- "I have had the privilege to get to know both Pihlavan Ikkuna and Timo Vannas," says Sven-Gunnar Schough, CEO of Elitfönster. "I have been able to see that Pihlavan Ikkuna is one of the most effective window producers in the Nordic region and I am convinced that the company will fit well into the Elitfönster Group both in terms of products and strategically."
In addition to the acquisition of Pihlavan Ikkuna giving the Elitfönster Group a platform for additional expansion in the Finnish window market, there are synergy effects on the purchasing side. After the acquisition, the Elitfönster Group is expected to have approximately 1,200 employees and annual sales in excess of SEK 1.5 billion. Ratos owns 95% of the Elitfönster Group with senior management owning the remaining 5%. The acquisition is subject to approval from the Finnish Competition Authority.
For additional information, please contact:
Arne Karlsson, CEO of Ratos, +46 8 700 17 00
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 8 700 17 49
Sven-Gunnar Schough, CEO Elitfönster, +46 383 76 34 00