Redgate Capital buys Tartu’s print industry (Äripäev, in Estonian)
Redgate Capital has announced that their alternative investments business unit has bought print services company Ecoprint AS.
Ecoprint has been in business for more than 15 years, with annual net sales of 30.7 million euros and a net profit of 1.2 million euros in 2009. The company, located in Tartu, employs 35 people, and nearly 20% of its production is exported. According to Äripäev estimations, the company’s approximate value is 10 million euros.
Ecoprint’s services meet the highest standards of internationally recognized environmental certification. The company’s competitive advantage in the Scandinavian markets is based in particular on these well-known and appreciated cetificates.
Ecoprint’s founder and former owner Juhan Peedimaa said that he decided to sell the printing company because its future development needed new ideas and probably also new leaders.
According to Redgate Senior Partner Mart Altvee, investors value in particular Ecoprint’s good team and the company’s export potential. “We see that the Ecoprint team has been doing a good job. However, the export activities of the company have just begun, and here we see great potential for the future,” he says.
Redgate, which is involved in capital investments in Estonia and Scandinavia, focuses on growth potential as well as expanding their investments in Estonian and other Baltic companies. Redgate’s venture capital investment portfolio concentrates on medium-sized enterprises facing difficulties raising capital, or whose growth strategy is not in accordance with the owners’ expectations anymore.
Ecoprint is the second acquisition of Redgate, which has recently acquired the company OÜ Põltsamaa Graniit operating in construction materials sector.
According to Mart Altvee, Redgate is currently looking into three more possible investments. “The owners of Estonian-based companies have expressed more interest in expansion, raising capital and enterprise divesture opportunities this year,” he adds.
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