Luzales closes acquisition of former IKEA factories in Leningrad, Kirov regions

ST. PETERSBURG. March 27 (Interfax) - Luzales LLC, a lumber producer based in Syktyvkar, has completed the acquisition of factories in Leningrad and Kirov regions from Swedish furniture giant IKEA, a company spokesman told Interfax.

"I confirm the closure of the deal," the spokesman said when asked about the current stage of the acquisition process.

The company said that factories will manufacture furniture for educational institutions and goods that will be sold on marketplaces. The company did not disclose the financial terms, deadlines or other conditions of the deal.

Luzales board chairman Ruslan Semenyuk was reported as saying earlier that the company had been selected as the buyer for two factories, IKEA Tikhvin in Leningrad Region and IKEA Vyatka in Kirov Region.

"These are production facilities that we understand. We've already worked with Vyatka, and as for Tikhvin, the production technology there is virtually identical, and we have an understanding of how to organize operations. The main goal that we and the Russian government currently face is resuming production, preserving jobs at the factories and protecting workers' labor rights," Semenyuk said.