1 Dec 2022 19:42

Bergauf Group buys assets of Finnish construction materials maker Kiilto

YEKATERINBURG. Dec 1 (Interfax) - Bergauf Group (the Bergauf trademark) has bought the Russian assets of Kiilto, a Finnish manufacturer of construction materials, Bergauf's statement said.

The assets include AO Kiilto-Klei, OOO Kesto Family, and OOO Kiilto-Klei Ramenskoye (now OOO Bergauf Ramenskoye). The agreement was signed on October 26. The company did not disclose the sum.

"The purchase of additional Kiilto assets will strengthen Bergauf's positions on the Russian market for construction mixtures, boost its output, and cut delivery times within Russia and to CIS countries. [...] This is Bergauf's first step in line with the company's business diversification strategy," the statement said.

Bergauf also plans to widen the range of its glue products.

Bergauf will continue production processes in Ramenskoye (Moscow region) and in Maloyaroslavets (Kaluga region). The construction materials will sell under the Kiilto brand through the end of 2022, after which there will be a rebranding.

The acquisition excludes OOO KiiltoKlin, a KiiltoClean Group subsidiary which specializes in professional hygiene solutions. According to Kiilto's website, it could be bought by O3, a Moscow-based manufacturer of protective materials for construction (a preliminary sale and purchase agreement has been signed) and transferred if there is permission from the Russian authorities.

Kiilto is a Finnish company founded in 1919 to develop and produce industrial glue, professional hygiene items, construction and consumer goods. It is present in eleven countries and has production facilities in four.

OOO Bergauf Construction Technologies produces and sells dry construction mixtures, paints and lacquer for concrete repair and protection. The group has an annual output of 800,000 tonnes produced in six of its own facilities and 12 tolling production sites. According to the Unified State Register of Legal Entities, the company is owned by Dmitry Knutarev (95%) and Alexei Bai (5%). In 2021, the company's revenues equaled almost 6 billion rubles, net profit stood at 103 million rubles.