BluOr Bank supports business development of the exporter of solid wood panels – CLT Profi

July 27, 2023

With BluOr Bank financing, CLT Profi becomes the largest owner of mass timber production facility “Cross Timber Systems” in Jelgava, thus accomplishing one of its future business development goals.

CLT Profi is engaged in the design, supply and installation of solid wood or cross-laminated timber (CLT) materials in export markets. The company is the largest mass timber exporter in Latvia, selling 99% of its products abroad. Already to date, the company has provided most of the production volume at the “Cross Timber Systems” facility, which began operating in 2015. The total production space covers 10,000 m2 and the company employs more than 60 employees.

“BluOr Bank is happy to provide support to Latvian export companies, helping them in pursuing future ambitions and plans. Despite the challenges that companies face today in terms of resource prices and labour costs, we believe that the funding provided will open up opportunities for SIA “CLT Profi” to develop new sales markets and to increase the capacity for the production of sustainable materials,” notes Dmitrijs Latiševs, BluOr Bank CEO.

“Interest and demand for more environmentally friendly construction materials continues to grow throughout the world. The Baltic states with their timber resources and woodworking knowledge accumulated over decades are strong players in the industry market. The acquisition of the factory is a carefully thought-out step to continue the company’s growth and strengthen its competitiveness in export markets. Having become the largest owner of “Cross Timber Systems”, in the future we will fully take over the operation of the factory and take care of the well-being of its employees. CLT Profi will maintain 100% production volume, and this year we also plan to invest in the upgrading of the factory,” said Andris Dlohi, Board Member at CLT Profi.

CLT Profi is mainly engaged in the design and installation of multi-storey residential and public buildings in the Netherlands, Belgium, as well as in the Scandinavian countries. There is also a small production of private houses, which are mostly exported to Norway and Iceland. The use of solid wood panels in the construction of buildings significantly reduces the construction time, simplifies logistics and is more cost-effective, while less construction waste is generated. In addition, timber panels are a significantly more sustainable raw material than other materials used in construction.

The M&A transaction was advised by the audit and business consulting company KPMG Baltics that carried out transaction structuring as part of the process, agreeing with the parties on the offering and value of the transaction, as well as during the attraction and coordination of bank financing.

“We are pleased to support the growth of an ambitious entrepreneur by purchasing a majority stake in a high-value-added timber production, thus combining product sales and project management. We believe that a targeted focus will help not only in the growth of the company, but will also increase the contribution of Latvian entrepreneurs in promoting global sustainability,” Kārlis Urbāns, KPMG Baltics M&A Deal Advisory Director.

Currently, SIA “Cross Timber Systems” shares belong to SIA “CLT Profi” (67,04%), which is 100% owned by Andris Dlohi, while the remaining shares of the company are distributed among Andris Dlohi (10,62%), Māris Avotiņš (10,47%), Roberts Dlohi (10,40%) and Ēvalds Zeldmanis (1,48%).

Photos: Factory in Jelgava and finished projects in Iceland, Poland and the Netherlands.