Thermory and Ha Serv Merge to Become the World’s Largest Producer of Thermally Modified Wood and Sauna Materials
The merger of Thermory, the leading producer of thermally modified wood, and Ha Serv, Europe’s largest manufacturer of sauna materials and ready-made saunas, has led to the creation of a global market leader in these segments.
The merged company’s multifaceted production capacity provides an excellent opportunity to reap the benefits of global trends.
The use of plastic, chemically treated wood and other environmentally harmful products is increasingly coming under pressure among architects and builders. Thermory is the largest producer of thermally modified, environmentally responsible hardwood in the world. Its products are directed at the expanding thermal wood market with vast potential to capture higher share of the 4-5 billion euro decking and cladding market. The merged company’s turnover is approaching 70 million euro by the end of the year.
Founder of Thermory Meelis Kajandu and the merged company’s largest shareholder and founding partner of Livonia Partners Kaido Veske saw the benefits of the merger for years. “Two equally successful wood production companies that were once rivals now work towards a common goal. It was difficult choosing a name to continue under and we had to use outside advice.”
The effective sales teams of Thermory and Ha Serv have led to the expansion of thermally modified wood and sauna products worldwide. “We have been competitors for over 20 years. Together we can think bigger and faster develop our various business lines,” added Meelis Kajandu.
The merged company has two production units located in Estonia and one located in Finland. The company also has sawmills in Estonia and Belarus and a subsidiary in the United States. Thermory employs more than 500 people.
Thermory’s management board will continue with two members: Johann Sulling and Marko Kevvai. According to Johann Sulling, the merger creates excellent opportunities for long-term growth through expanding the variety of product and market opportunities. “Everybody wins! 1+1 adds up to more than 2 in our case,” said Sulling. Thermory’s second board member Marko Kevvai added, “We came to the understanding that if you want to move forward fast, then go alone, but if you want to go far, it’s better to go together.”
– largest producer of thermally modified hardwood in the world
– exports to more than 50 countries worldwide
– 2017 turnover was 33.7 million euro
– focus on thermally modified decking and cladding
– one of Europe’s leading manufacturers of sauna materials, ready-made saunas and thermally modified wood
– exports to 34 countries
– 2017 turnover was 30.6 million euro
– focus on sauna materials and ready-made saunas
The largest shareholder of the merged company will be Livonia Partners Investment Fund. Livonia Partners is a leading investment fund in the Baltics with Estonian partners Rain Lõhmus and Kaido Veske. The second largest shareholder will be Thermory’s founder and visionary Meelis Kajandu. An important shareholder in Thermory for almost 10 years has been entrepreneur Jüri Mõis. All previous investors will also continue as shareholders of the merged company.
The legal advisors of the merger were law firms Eversheds Sutherland Ots & Co and Sorainen. The deal was overseen by PriceWaterhouseCoopers Advisors and Deloitte Advisory. The transaction price is confidential by mutual agreement of the parties.
Kaido Veske, Livonia Partners (company merger)
+372 52 02 088 / email@example.com
Merger of two leading manufacturers of thermally modified wood Ha Serv OÜ and Thermory AS
On July 27th 2018, wood manufacturing companies Ha Serv OÜ and Thermory AS signed a merger agreement. Both companies specialize in the production and promotion of thermally modified wood. The transaction is expected to be completed by the end of October this year. Until then the two companies will continue to operate separately.
Ha Serv OÜ is a leading manufacturer of sauna materials, finished saunas and thermally modified wood, exporting to over 34 countries. In 2017, the company acquired a Finnish company Suomen Lämpöpuu Oy, a specialized manufacturer of thermally modified wood products. Ha Serv OÜ production is located near Tartu, sales offices are in Tallinn, Estonia and Teuva, Finland. Ha Serv OÜ and its subsidiary company had a consolidated turnover of 30.6 million euros in 2017, of which the main part came from sales of sauna materials and finished saunas. Ha Serv group employs 220 people.
Thermory AS is the largest producer of thermally modified hardwoods in the world, exporting to more than 50 countries globally. Thermory’s consolidated turnover in 2017 was 33.7 million euros, of which thermally modified decking and cladding account for the main part. The production facility is located near Tallinn and the sales office in Tallinn, Estonia. Thermory AS has a subsidiary company in the USA and sawmills in Belarus and Estonia. Thermory group employs 280 people.
The aim of the merger is to create conditions for long-term growth by increasing efficiency and expanding the product portfolio and market reach. “Joining forces throughout the whole supply chain, starting from procurement of raw materials, increased production efficiency, improved investment possibilities and a more innovative product portfolio is beneficial to all stakeholders, from company staff to end customers,” said Marko Kevvai, CEO of Ha Serv OÜ. The CEO of Thermory AS Johann Sulling added: “The positive impacts of the merger should be seen already in 2019.”
The contracts and contact details of the merging companies will remain the same.
Clients, suppliers and other partners will be kept updated on the closing of the merger and future developments. Further information will be published on the homepages of both companies (www.haserv.ee ja www.thermory.com).
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