Boreo acquires a welding technology distributor Spetselektroodi AS
BOREO PLC Press release 31 March 2025 at 09:50 EET
Boreo acquires a welding technology distributor Spetselektroodi AS
Boreo Plc has on March 31, 2025 signed a share purchase agreement to acquire the entire share capital of Spetselektroodi AS (“Spetselektroodi”, or “the Company”) from Indrek Ranne (the “Seller”) (the “Transaction”). After the Transaction the Company will operate as part of Boreo’s Technical Trade Business Area, and will be led by Karl Laasik, current Head of the Company’s Technical Support.
“Spetselektroodi is a great company with a strong position as the long-standing partner for its customers, holding a strong position in Estonia’s welding industry. Due to its business model, capital efficiency and history of sustainable profit growth, the Company fits well with our target company profile. In 2022, we acquired Pronius, the exclusive supplier of Fronius‘ welding products in the Finnish market and are now delighted to extend our partnership with Fronius to Estonia. We warmly welcome Spetselektroodi to Boreo and are grateful for the opportunity to support the future journey of the Company”, says Boreo CEO Kari Nerg.
Founded in 1995, Spetselektroodi acts as the distributor of welding and cutting products and solutions in Estonia. The Company’s suppliers include Fronius, the global technology leader of welding products, Hypertherm, a global leader of plasma cutting solutions and several other well-known international brands. The Company serves as a partner to its customers throughout the product lifecycle, and engages in import, warehousing, sales and aftermarket services. Spetselektroodi employs 12 people, and its operations are in Tallinn, Tartu and Haljala, Estonia. In FY2024, the revenue of the Company was 3.6 million euros, with an EBIT of 0.4 million euros.
The purchase price will be paid in cash. The payment is scheduled in two instalments, two thirds at closing and one third in the last quarter of 2025. Boreo will fund the payment of the purchase price with its existing financing facilities.
Completion of the Transaction is subject to regulatory approvals in Estonia and is expected to close in the turn of April-May 2025.
Vantaa, 31 March 2025
Boreo Plc
Kari Nerg
CEO
Distribution:
NASDAQ Helsinki Ltd
Principal media
www.boreo.com
For more information:
CEO Kari Nerg
+358 44 341 8514
CFO Jesse Petäjä
+358 40 706 9450
Boreo in brief
Boreo is a company listed on Nasdaq Helsinki that creates value by owning, acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade.
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
The Group's net sales in 2024 were EUR 134 million and it employs over 300 people in seven countries. The company’s headquarter is in Vantaa.