Industry Press Releases

“Grigeo” AB intends to sell 100% of the shares of its subsidiary UAB Grigeo Baltwood

Saturday, Sep 23, 2017

On 21 September 2017, AB Grigeo and UAB Grigeo Baltwood signed a letter of intent with the German company Homanit Holding GmbH regarding the sale of 100% of the shares of UAB Grigeo Baltwood. Upon accomplishment of the transaction, within a period of a year and a half, Homanit Holding GmbH intends to invest EUR 65 million in Lithuania, to increase the number of employees of UAB Grigeo Baltwood by 2.5 times, and to boost production quantities by more than 4 times.

“The recent strategy of our group of companies is focused on two core business sectors – tissue paper and cardboard production. So, we have been looking for an investor in fibreboard production for several years. Homann Holzwerkstoffe Group is a stable company pursuing rapid international expansion, so we believe that its investments in Lithuania will create highly skilled jobs and contribute to the development of technological innovations”, comments Gintautas Pangonis, Chairman of the Board and President of AB Grigeo.

Homanit Holding GmbH belongs to Homann Holzwerkstoffe Group. The main business of the company is the production of thin MDF/HDF high-end wooden fibre boards with over 1,500 employees. During 2016 Homanit Holding GmbH generated turnover amounted to EUR 225 million, EBITDA – to about EUR 33 million. The company supplies its products to international and regional furniture, door, and automotive industries. Homanit Holding GmbH office is located in Herzberg, Germany.

UAB Grigeo Baltwood products are used for production of internal furniture surfaces, decoration of residential and public premises, interior and exhibition stands, stiff packaging, and other consumer products and products of various purposes. The company employs 140 people and its annual production volumes amount to around 23 million square metres. 80% of the production is exported by the company to the Member States of the European Union. The planned turnover of UAB Grigeo Baltwood in 2017 is around EUR 17 million. 100% of the shares in the company are held by AB Grigeo.

Gintautas Pangonis
President of AB “Grigeo“
(+370-5) 243 58 01

 

Source: globenewswire.com

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