Estonian holding company UG Investeeringud has signed a preliminary agreement to obtain the majority ownership in Thermory AS, a global leader in thermowood production, from Livonia Partners. Headquartered in Estonia, Thermory is a manufacturer of thermally modified woods, sauna materials, and coated decking and cladding products.
The company was founded in 1997 and today is the largest thermally modified wood producer in the world with annual revenue in excess of €100 million and manufacturing facilities in three countries. Employing nearly 700 people, Thermory exports to more than 50 countries worldwide. UG Investeeringud had previously been a minority shareholder of the company.
Kristjan Rahu, CEO of UG Investeeringud said: “We are delighted to join forces with Thermory, which is a global success story born in Estonia. We keep in high regard its ambition and capabilities, when it is adding in a sustainable way value to wood, an important renewable building material”.
Meelis Kajandu, founder of Thermory said: “Thermory is very grateful to Livonia Partners, with whom it has had exciting years of growth. After rapid growth through mergers and acquisitions and expansion in export markets, Thermory plans to move forward and focus on the company's organic growth. The plan is to increase production capacities in Estonia and Finland, develop sawmills and international sales offices, and focus on reducing the carbon footprint. UG Investments is a long-term stable investor that can raise new capital if necessary.”
Kaido Veske, one of the founders of Livonia Partners, said: “We are forever grateful to Thermory’s founder Meelis Kajandu, management and everyone who contributed to building the success that is Thermory. It was the first investment for Livonia and exactly the type we promise our investors in terms of ambition and outcome. We are confident Kristjan Rahu is the best supporter for Thermory to reach its global potential.”
Transaction details were not disclosed. The deal is subject to the approval of Estonian competition authority.
UG Investeeringud is an Estonian holding company which invests in sustainable and export-oriented companies in sectors like industry, infrastructure, utilities and more.
Livonia Partners is the only dedicated private equity investment fund based in the Baltics, currently managing €83 million as part of the Livonia Partners Fund I and the Livonia Partners EIF Co-Investment Fund. Run by founders Kaido Veske, Kristīne Bērziņa, Rain Lõhmus, and Mindaugas Utkevičius, its investors are domestic and international financial institutions. Livonia was partly originated through the Baltic Innovation Fund (BIF), a common initiative of Estonia, Latvia, Lithuania and the European Investment Fund.
