Forchem's main shareholders that include funds advised by Bio Fund Management, Profita Management, and OKO Venture Capital, Finnish Industry Investment, and the management share holders Hannu Näsi and Martti Fredrikson have signed a definitive agreement with private equity company MB Funds for the sale of Forchem Oy. The main shareholders stated that the investment has been successful and that they are pleased with the outcome of the transaction.
Forchem was founded in 2000, and it operates a tall oil fractionation plant completed in 2002 at Rauma, Finland. Forchem's products are used in various chemical industry applications such as coatings, fuel additives, adhesives, printing inks and paper chemicals. Forchem sells the majority of its products within the EU area where it is the market leader in rosins. In 2006 Forchem generated estimated gross sales of approximately EUR77 million.
"We are excited about the sale of Forchem to MB Funds. We look forward to the opportunity to work with their team to further grow our business as one of the leaders in the tall oil industry", said Martti Fredrikson, CEO at Forchem. "Forchem has an excellent team of talented people. The company has a widely recognised brand name and proven ability to fulfil customer needs. Our growth has been very strong and we expect it to continue under the new ownership."
"In addition to Forchem's position achieved in the tall oil business, MB Funds' investment in Forchem is based on the successful completion of the planned sterol investment. When completed, Forchem will achieve a substantial market position as a producer of sterol raw material globally." said Eero Niiva, partner at MB Funds.
MB Funds is an independent Finnish private equity firm with investment focus in Nordic middle market buy-outs, privatisations, buy and build transactions and expansion capital. The funds advised by MB funds have prime Finnish institutions as investors.
Forchem and its shareholders were advised by Access Partners.
More information:
Martti Fredrikson, CEO
Forchem Oy
tel. +358 50 3104 400
Eero Niiva, partner
MB Funds
tel. +358 40 556 4660,