Information on the Target

Velvet CARE, the largest independent tissue manufacturer in Poland, is poised to enhance its market position through the acquisition of Almus, a well-established family-owned tissue converting business. Almus specializes in producing high-quality toilet paper and kitchen towels, available in both branded and private label formats. The company boasts a robust asset base, featuring five state-of-the-art converting lines with an aggregate capacity of 70,000 tonnes per annum. Over the past few years, Almus has shown steady growth, further solidifying its reputation in the industry.

Industry Overview in Poland

The tissue manufacturing industry in Poland has experienced significant growth, driven by rising consumer demand for quality hygiene products and an increasing focus on sustainability. The market has been characterized by heightened competition among local and international players, leading to constant innovation and product diversification. This growing demand is also influenced by shifts in consumer behavior towards more environmentally friendly products, further pushing manufacturers to align with ESG principles.

In recent years, the Polish market has seen major players intensify their operations through technological upgrades and strategic acquisitions, aiming to enhance their market share and operational efficiency. Established companies have also focused on expanding their distribution networks, both domestically and in export markets, thereby enhancing their competitive edge. The consolidation trend within the industry reflects a strategic response to cost pressures and the need for scalable operations to meet surging consumer demand.

Additionally, Poland's favorable economic environment, characterized by low unemployment rates and a growing middle class, continues to fuel the demand for tissue products. This economic backdrop provides a solid foundation for manufacturers to invest in new technologies and expand their product ranges to capture a larger market share.

The Rationale Behind the Deal

The acquisition of Almus is a strategic move to bolster Velvet CARE's market leadership and position the company for sustained growth in both the short and long term. By integrating Almus’s operations and capabilities, Velvet CARE is expected to realize significant synergies, particularly in production efficiency and product quality. This consolidation will not only enhance Velvet CARE's competitive positioning but also create a stronger portfolio of products to meet the evolving needs of consumers.

Information About the Investor

Abris Capital Partners is a private equity firm specializing in ESG transformation. With a commitment to driving sustainable growth, Abris acquired Velvet CARE in 2018 with the objective of building a leading regional player in the tissue manufacturing sector. Under Abris' stewardship, Velvet CARE has demonstrated impressive growth metrics while maintaining a focus on operational efficiency and eco-friendly practices. The firm's investment approach emphasizes enhancing competitive positioning and market expansion, paving the way for Velvet CARE to emerge as a regional champion.

View of Dealert

The acquisition of Almus by Velvet CARE represents a strategic and potentially lucrative investment opportunity. Leveraging Almus’s established operations and product offerings can accelerate Velvet CARE’s growth trajectory and enhance its market share in a competitive landscape. Given the increasing consumer focus on high-quality and sustainable products, this deal aligns well with prevailing industry trends and consumer preferences.

Furthermore, Abris Capital Partners’ track record in executing successful investments in the tissue sector positions them favorably to unlock immediate operational synergies and long-term value from this acquisition. Given the robust demand for tissue products coupled with the strategic integration of Almus, this investment could yield strong returns in the rapidly evolving Polish market.

Ultimately, if executed effectively, this acquisition not only fortifies Velvet CARE’s market leadership but also reinforces the company's commitment to quality and sustainability, essential attributes in today’s business environment. The combination of Velvet CARE and Almus is likely to create a formidable player in the Polish tissue market, setting a precedent for future growth and innovation.

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