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Estonia: Smart Production Nordic buys mattress manufacturer Toom Tekstiil

BC, Tallinn, 26.08.2019.Print version
Smart Production Nordic OU, a company bringing together investors with a background in manufacturing and textile industry, has acquired the home textile, mattress and non-woven fabrics manufacturer Toom Tekstiili based in Viljandi county, South Estonia, writes LETA/BNS.

The majority shares in Toom Tekstiil were sold by Illimar Toom and Innar Susi, who held the shares through other companies.

The transaction is financed by Coop Pank. The parties have agreed not to disclose the value of the transaction. 

The group of investors that acquired the company is represented by Vahur Roosaar, who has been working as CEO of Toom Tekstiil since May this year and who will continue to work in that position also after the conclusion of the transaction.


Roosaar, a native of Viljandi, worked at Toom Tekstiil also in 2001-2002. In addition to Roosaar, Peep Armvaart, who has also worked at Toom Tekstiil for a long period of time in the past, will sit on the board of Toom Tekstiil.


"Several potential buyers were interested in Toom Tekstiil, and the vision of the buyers became crucial in making the decision in the first place. I'm sure that the company received new owners who are experienced and possess a clear vision, under whose management business will continue and grow. The precondition for the sell-off on our part was that manufacturing in Viljandi and Abja-Paluoja will not be closed, and the new owners have given us assurances on this," founder of the company Illimar Toom said.


Vahur Roosaar said that the company will continue manufacturing textile products both for the Estonian market and export.


"It is our aim to double business volumes in a couple of years and make Toom Tekstiil more profitable," he said.


"While it may be difficult for producers in Estonia to compete with global mass production, the opportunity we have is to make use of our strengths here: to produce with higher quality and smarter. In the Nordic countries in particular, Estonian textile and furniture products are known for their high quality, and this creates opportunities for us in export. For me and Peep this is about returning to a place where we used to work earlier, this time also on the level of the owner," Roosaar said.


The consultants in the sales and purchase transaction were Aureus Capital Consulting on the part of the sellers and Smart Production Management and Uplegal Law Office on the part of the buyer. 


The owners of Smart Production Management are Vahur Roosaar, Peep Armvaart, Markko-Rollin Podra and Urmas Tiru. 


Established in 1995, AS Toom Tekstiil employs a workforce of 230, of them about 155 in Viljandi and 75 in Abja-Paluoja.


The main products manufactured by Toom Tekstiil are blankets and pillows, beds, mattresses, and interlining materials used in the furniture industry.


The company's sales in 2018 amounted to 13 mln euros and the main markets were Germany, Austria, Finland, Estonia and Lithuania.






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