Construction, EU – Baltic States, Industry, Markets and Companies, Mergers and take-overs

"The acquisition of our Finnish and Latvian operations by Consolis is an acknowledgment of our track-record over the years and of the quality of our teams. Consolis is a recognized leader in precast concrete which has solid ground for further growth. TMB will continue its operations in Estonia on a standalone basis," Jaan Luts, CEO of TMB, said.

Consolis Group on Tuesday announced the agreement on the acquisition of the Finnish and Latvian operations of TMB Group, one of the main producers of concrete elements in the Baltics and Finland which operates in Finland through Betonimestarit Oy and in Latvia through TMB Elements SIA. The annual revenues of these operations acquired by Consolis exceeded 100 mдn euros in 2018.

"This move is part of Consolis’ growth and development strategy as a European key player in building. It follows the recent acquisition by Consolis of Tecnyconta, one of the key precast producers on the building segment in Spain which took place in November 2018," Consolis said.

Previously Consolis had been in a process of acquiring the entire TMB group, including the Estonian unit.

In January 2019, the Estonian Competition Authority terminated the review of the planned consolidation as the parties had abandoned the plan.

Maarja Uulits, head of PR at the Competition Authority, told Postimees at the time that they had indicated to Consolis that the consolidation might bring with it a competition problem on the Estonian market as Consolis already owns a major manufacturer of concrete elements, E-Betoonelement.

TMB Group, the former Tartu Maja Betoontoote AS, was established in 1961. The company had sales of over 120 mдn euros in 2017 and it employs a workforce of almost 500 people. Its net profit was 14.5 mдn euros in 2017 and 5.3 mдn euros in 2016.

Jaan Luts, CEO of TMB, and Vallot Mangus, chairman of the supervisory board of TMB, each own 32.2% of TMB. The Finnish company Invest Saarelainen Oy and private Finnish investors own 23% of the shares, whereas the names of the owners of the remaining shares do not appear from the Commercial Register.