Vapo sells Latvia-based AS Seda to Kalloveen

Vapo Oy and Kalloveen, a Belgian/Dutch horticultural peat company, have agreed on a transaction that sees Kalloveen acquire AS Seda, a fully owned subsidiary of Vapo that produces and refines horticultural peat. Seda is one of the largest producers of horticultural peat in Latvia. Its total production area is approximately 1,500 hectares and it has an annual turnover of about EUR 5 million. Seda employs direct and indirectly more than 100 people.

Kalloveen is a privately held Belgian/Dutch company focused on the production, refining and distribution of horticultural peat in Europe. Kalloveen’s annual turnover is approximately EUR 20 million.

According to Tomi Yli-Kyyny, Managing Director of Vapo Oy, the divestment of the company’s Latvian subsidiary focused solely on the production of horticultural peat is in line with the company’s current strategic focus on strengthening its balance sheet and focusing on its energy-related core business. As Vapo has no other operations in Latvia, the transaction also simplifies the company’s administration.

Yli-Kyyny says the transaction will not have a substantial impact on Vapo Oy’s result for the year. The parties have agreed that the transaction price will not be made public.

According to Leo Hermans, Managing Director of Kalloveen, the company has cooperated with both Seda AS and the Vapo Group. We are familiar with the company and its products, and we are pleased to have the opportunity to acquire it as part of our business.

For further information contact:
– Leo Hermans On kalloveenlh@telenet.be  or by phone +32 478 377 507
– Ahti Martikainen, Vapo Oy, tel. +358 20 790 5608