A Grigeo group company purchased a toilet paper factory in Poland

DEVELOPMENT

A Grigeo group company purchased a toilet paper factory in Poland

Grigeo, one of the largest groups of paper and wood industry companies in the Baltic States, has successfully completed the transaction for the Polish toilet paper and cardboard producer Głuchołaskie Zakłady Papiernicze sp. z o. o. (GZP) acquisition of one of the factories.

In accordance with the conditions stipulated in the preliminary agreement, Grigeo Hygiene, a subsidiary of Grigeo, acquired 100 percent of GZP subsidiaries Niedomickie Zakłady Papiernicze sp. z o. o., which operated a toilet paper business in Niedomice, Poland. The acquisition was financed from funds raised by Grigeo.

“This transaction will allow us to gain a stronger foothold in the rapidly growing market of Eastern and Central Europe. Optimizing logistics costs will also open up wider opportunities for the realization of the highest quality production in Germany and other Western European markets,” said Tomas Jozonis, CEO of Grigeo.

This is the first purchase of the “Grigeo” group of companies on the Polish market – a sanitary paper factory located in the town of Niedomice, 90 km east of Krakow. It currently employs about 170 workers, has a paper machine and converting lines.

According to unaudited data, in 2023 of the purchased GZP unit. annual turnover was about 40 million. EUR, the value of the business is about 22 million. euros.

About 860 employees work in the Grigeo group of companies. According to unaudited data in 2023 The annual turnover of the “Grigeo” group of companies reached 195.4 million. euros. Group EBITDA (earnings before taxes, interest and depreciation) compared to 2022 increased by 17.6 million euros and amounted to 38.9 million euros. in 2023 The net profit of AB “Grigeo” group of companies reached 29.6 million. EUR, that is 18.0 million euros more than during the same period in 2022. period.

Shares of AB Grigeo are included in the official trading list of AB Nasdaq Vilnius.