JSC Olainfarm has signed a loan agreement with JSC ABLV Bank about 10 years maturity loan of 14 million euros to finance the acquisition of 100% shares in Tonus Elast Ltd., producer of elastic medical appliances.
“Acquisition of Tonus Elast is so far the biggest project related to expansion of Olainfarm group. We believe that all the synergies, new markets, improved product portfolio and joined experience will ensure a more dynamic development of Tonus Elast and the entire group,” says Valerijs Maligins, Chairman of Olainfarm’s Board.
Antons Marcenko, Head of Project funding unit of JSC ABLV Bank notes: “ABLV offers and provides special custom tailored lending conditions. Lending for large Latvian companied and providing full support service for acquisition transactions is our priority. Long term loan for producer, producing export oriented products confirms our trust in client’s business model, management team and shareholders. This sizeable transaction is a good indication about the investment climate in Latvia – as the local capital is playing an increasing role in development of Latvian economy and improving competitiveness of Latvian companies abroad. We expect that further growth of our loan portfolio will also be predominantly ensured by lending to Latvian based companies.”
Legal support to JSC Olainfarm for acquisition of 100% shares in Tonus Elast Ltd. and for financing was provided by Glimstedt un partneri law office.
Tonus Elast Ltd. was established in 1995 and is a producer of elastic medical products, from elastic bandages to complicated corsets for pregnant and lactating women. Products portfolio of Tonus Elast Ltd. includes more than 100 different product types, bestselling of which are bandages and compression products. The main sales markets are CIS and EU countries, India and the countries of Middle East. A little more than 200 employees are working at production site of Tonus Elast Ltd. in Nicas novads. Company’s sales in 2015 were 7.3 million euros and it made a net profit of 1.7 million euros.
About JSC Olainfarm
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
About JSC ABLV Bank
JSC ABLV Bank is the largest independent bank in Latvia. Shareholders of the bank: Olegs Fils, Ernests Bernis and Nika Berne, both directly and indirectly own 86.25% of voting shares. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; ABLV Advisory Services, SIA; New Hanza City, SIA and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Vladivostok, Kyiv, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol and New York.
Information prepared by:
Salvis Lapins
JSC Olainfarm
Member of the Management Board
Rupnicu iela 5, Olaine, Latvia, LV 2114
Phone: +371 6 7013 717
Fax: +371 6 7013 777
E-mail: Salvis.Lapins@olainfarm.lv
