Savotta Group, a Finnish manufacturer of defense and outdoor equipment, has sold a 20% minority stake to Rite Ventures to enhance international growth and e-commerce capabilities while retaining its family-owned roots.

Target Information

Savotta Group, a family-owned company based in Karstula, Finland, specializes in the manufacturing of outdoor, hunting, and defense equipment. Established nearly 70 years ago, the company has a longstanding relationship with the Finnish Defense Forces, which has been a significant customer for decades. Their products are well-regarded, particularly the defense gear produced under the Finn-Savotta brand, which has played a pivotal role in supplying essential items to military personnel.

The company operates factories in Karstula and Tartu, Estonia, employing a workforce of 206 individuals. Last year, Savotta Group reported a revenue of €14.5 million and an operating profit of €3.78 million, illustrating a profitable business model even amidst fluctuating market conditions. The recent uptick in defense-related demand, especially following geopolitical events such as the war in Ukraine, has further bolstered their growth potential.

Industry Overview

The defense equipment industry in Finland has seen a significant boost in recent years, driven by geopolitical tensions that have heightened the focus on national security. This shift has created opportunities for companies like Savotta Group, which cate