Published on: 09 Oct 2019

European specialist of indoor and outdoor painted claddings Siparila Oy has been acquired by global thermowood producer Thermory AS. The combination creates a group with more than €100 million in revenues with manufacturing and sales capability in key regions internationally. The transaction was financed by SEB.

This transaction helps Thermory significantly expand its product portfolio from currently focused thermally modified wood for decking, cladding and sauna materials to high quality painted cladding applications. Siparila organisation and products will immediately gain access to the global sales distribution network.

According to the CEO of Thermory, Johann Sulling, both Thermory and Siparila are producers of high quality value-add wood materials, so this acquisition takes place primarily considering the future potential of taking innovative solutions developed by the Nordic wood industry to global customers.
“Siparila has long-term experience in development and production of innovative wooden materials as well as history in cooperating with architects and developers in the Finnish and Scandinavian markets. We see a lot of potential to widen the customer base internationally and continue this success story,” said Sulling.

Thermory also owns a thermowood producer Soumen Lämpöpuu in Finland. With this transaction, Thermory, who currently employs 550 people in five production units in Estonia, Finland and Belarus, will increase its production capacity with further four production units of Siparila in Finland, welcoming 130 new employees to the group.

Siparila will continue its activities in Finland based on the current brand and operational model. The owner of the company, Juha Sojakka, will remain closely involved in the company and continue as the CEO of Siparila.

According to Sojakka, joining forces with Thermory will enable Siparila to develop faster to the next level and expand internationally. “Interest towards the Nordic and Scandinavian timber has never been greater than now. We will shake hands with Thermory who brings on board their experience in selling its product globally, while we share our knowledge of product development with highest Nordic quality,” Sojakka added.

Thermory AS is an Estonian company, founded in 1997, a world’s leading producer of thermally modified wood and sauna materials. The production units of the company are in Estonia, Finland, Belarus with a sales department in the USA. The company employs 550 people and the forecasted turnover for 2019 is estimated at 70 million euros, of which 90% is export.

Siparila is the leading wood processing company with interior and exterior solutions, established in Finland in 2003. The company has four production units in Finland with a total of 130 people. The annual turnover of Siparila amounts to 35 million euros, with ca 30% coming from export.

Livonia Partners is dedicated private equity investment firm, currently managing €83 million as part of the Livonia Partners Fund I and the Livonia Partners EIF Co-Investment Fund, investing in Baltics and beyond. Run by founders Kaido Veske, Kristīne Bērziņa, Rain Lõhmus, and Mindaugas Utkevičius. Its investors are domestic and international financial institutions. Livonia was partly originated through the Baltic Innovation Fund (BIF), a common initiative of the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and the European Investment Fund.