BillerudKorsnäs AB and Baltic Resources AB sell 100% of SIA Latgran to AS Graanul Invest


May 22, 2015

BillerudKorsnäs AB and Baltic Resources AB have signed an agreement to sell 100% of SIA Latgran (“Latgran”) to AS Graanul Invest (“Graanul”). The transaction is expected to close in July 2015, provided that certain closing conditions are fulfilled.

Latgran, the leading producer of utility grade pellets in Latvia, produced 497 thousand tonnes of pellets in its four factories in 2014 and generated sales of approximately EUR 73 million.  The company expects volumes to grow by approximately 20% in 2015 owing to the successful launch of a new pellet factory in Gulbene in H2 of last year.

Graanul is the largest producer of pellets in the Baltic region with 853 thousand tonnes of pellet production in 2014. Graanul has 4 operational plants in Estonia, 2 in Latvia and 1 in Lithuania. In addition to utility-grade pellets, Graanul manufactures premium pellets. Graanul also has exposure to renewable energy through its four biomass CHP plants with combined capacity of 21 MWe.

Ilmars Kass, CEO of Latgran, comments:

“The market for utility-grade pellets is evolving rapidly with European countries leading the way globally. Baltic producers have a strong foothold in the market. The combination of Latgran and Graanul will create the largest European pellet producer and a top global player with expected total production of 1.8 million tonnes of pellets in 2015.”

Raul Kirjanen, CEO of Graanul, said the following:

Latgran is an outstanding success story amongst European pellet producers. Management has done a phenomenal job building a highly efficient producer.  Acquisition of Latgran provides us with many opportunities which are expected to strengthen our competitive position in the global pellet markets. Through our joined volume we can provide to our customers more flexibility, wider range of different logistical solutions and even better security of supply situation. I am very enthusiastic for the prospects of the combined entity.”

SEB Corporate Finance and Superia Corporate Finance acted as financial advisers and Cederquist is the legal advisor to the sellers in connection with the transaction.

Law firm Red acted as legal advisor to Graanul.


For further information, please contact:

Ilmars Kass, CEO, Latgran, +37129135235,

Raul Kirjanen, CEO, Graanul Invest, +3726699870,

Date created: 22.05.2015
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