18.12.2006, 15:51
Lassila & Tikanoja has signed an agreement on the acquisition of the majority (70%) of the shares of Biowatti Oy from the acting management of the company. L&T has also made a commitment to redeem the remaining thirty percent of the shares by the end of the year 2011.
Biowatti is the leading Finnish bio energy supplier, operating in the procurement, processing, marketing and delivery of bio fuels. The main products are by-products of forest and wood processing industries and logging chips. The company supplies raw material for the pulp and board industries as well as pellet factories. It also provides materials for landscaping, composting and for use as bedding. Biowatti employs 38 people.
The estimated net sales of Biowatti for the year 2006 are EUR 65 million. Bio fuel sales account for two thirds and industrial raw materials sales for one third of the net sales.
Through the acquisition of Biowatti L&T implements its growth strategy. The bio fuel markets are expected to grow strongly in Finland during the next few years, and a national goal has been set to double the utilisation of forest energy by the year 2010. L&T seeks to have a role in this development. Through this acquisition L&T becomes a significant player in this sector. L&T is already operative in the market for renewable energy sources.
The name of the acquired company will be L&T Biowatti Oy, and it continues its operation as a part of Lassila & Tikanoja Group. Mr Pekka Laurila will continue as Managing Director.
The acquisition is subject to approval of the competition authority. The resolution is expected during January 2007.
For further information, please contact:
Jari Sarjo, President and CEO, Lassila & Tikanoja plc, tel. +358 10 636 2810
Martin Forss, Vice President, Corporate Planning and Business Development,
tel. +358 500 413 621
www.biowatti.fi