Polish tissue manufacturer Velvet Care has signed a preliminary agreement to purchase 100% of shares in family-owned Polish tissue converting company Almus.
Almus manufactures toilet paper, paper towel and professional products at its plant in Słomniki, Małopolska Province, where it houses five processing lines with a capacity of 70,000tpy.
It also supplies products sold under private labels by commercial brands in Poland and abroad and is a manufacturer of paper products under the Almusso brand.
Artur Pielak, president of Velvet Care, said: “Since the moment it was established, Velvet Care has been consistently aiming for business development.
“The acquisition of Almus is a strategic decision that reinforces our position as a leader in the paper industry in the Central Europe region.
“After the historic moment in 2022 – namely when the threshold of PLN1bn turnover was exceeded and after incorporating Almus into the structure of the Velvet CARE Group – the management board is ready to designate new ambitious goals.
“Another milestone that we plan to accomplish by 2025 is the turnover on the level of PLN2bn.”
Wojciech Starnawski, President of ALMUS added: “This is also an opportunity for procuring new clients in the country and abroad and establishing cooperation within the scope of production, including delivery of the top-quality tissue manufactured at Velvet Care’s Klucze plant.”
After finalisation and merger of the companies, the Velvet Care Group – which currently consists of Velvet Care and the Czech company Moracell – will increase its processing capacity by almost 40% to 250,000tpy.
It will then have 23 processing lines, three paper machines and five warehouses located in three production plants in Klucze, Słomniki and Žabčice (Czech Republic).
The share purchase transaction is currently being approved by the Polish Office of Competition and Consumer Protection and a final decision is expected to be made in this quarter.
The purchase is a development strategy of Velvet Care set out by the management board and its majority shareholder, Abris Capital Partners.
It aims to maintain a strong leader position in the paper industry in Central Europe.
In the future, the company said it is planning to further develop its business at the markets in its region and continue to work on next strategic acquisitions.