The road tanker, tank trailer and swap body manufacturing of Site Oy and Interconsult i Falkenberg Ab, both subsidiaries of Finnish Jyki Group Oy, will be merged with Finnish OBAS Oys to form a single company, Nordic TANK Ltd through a buyout. The new company will be the largest manufacturer of heavy road tankers, tank trailers and swap bodies in the Nordic countries.
Nordic TANK is owned by funds managed by Teknoventure Management Oy, Finnish Industry Investment Ltd, Jyki Group Oy, and OBAS Oys CEO, Mika Rytky, MSc, who is CEO of the new company. The transaction price was not published.
Nordic TANKs customers consist mainly of Nordic and Russian transport companies and industrial enterprises. Tank trailers and articulated tank containers are used to transport granular and powdery products (such as grain and cement), liquid foodstuffs (such as milk and beer), liquid fuels and oils, liquid waste, chemicals, and liquefied gases.
The companys business idea is to provide one-stop service, where the customer receives all the services needed from a single supplier throughout the product lifecycle: new products, annual inspections, servicing, and factory reconditioning or recycling.
Some customers will surely be interested also in leasing road tankers and tank trailers, because nowadays transport companies generally have short contracts with industrial firms. That will allow transport companies to free up capital for their other business and reduce investment-related risks, CEO Rytky explains.
The market in Russia is just waking up, and the next 3-10 years will see strong growth, forecasts Investment Director Mauri Visuri from Teknoventures.
As a large company, Nordic TANK will reap cost benefits through centralised purchasing, product families that mesh with each other and, above all, by extending its service business to cover the whole lifecycle. Profitable business that smoothes out business cycles can be built on servicing operations, points out Investment Director Antti Kummu from Industry Investment.
Nordic TANK is domiciled in Oulu, Finland. Manufacturing is concentrated in three factories: in Kuortane and Oulu, in Finland, and in Falkenberg in Sweden. The companys servicing network covers Oulu, Jyväskylä, Lieto and Hamina, in Finland, as well as Nyköping and Falkenberg, in Sweden, and Oslo in Norway. Nordic TANK also has a sales company in St Petersburg, Russia.
The new company will employ some 250 people.
SITE manufactures road tankers for transporting powders and granulates, liquid fuels and also milk. Founded in 1975, the company also offers servicing and spare parts services in Kuortane, Finland.
www.site.fi
Interconsult manufactures road tankers for transporting powders and granulates, liquid fuels and milk, as well as vacuum/pressurised vehicles for transporting liquid wastes. Founded in 1947, the company also offers servicing and spare parts services in Nyköping, Falkenberg and Oslo.
www.interconsult.se
OBAS manufactures tank containers, trailers and semi-trailers that meet the ADR requirements for the carriage of dangerous goods by road. The company is the largest Scandinavian manufacturer of tank containers and trailers for transporting chemicals. OBAS also has service, repair and inspection facilities for heavy goods vehicles in the Finnish cities of Oulu, Jyväskylä, Lieto and Hamina. The company was founded in 1993. www.obas.fi
Jyki Group Oy is one of Finlands largest manufacturers of swapbodies and trailers. The companys product range includes JYKI timber and tailbed trailers, bogie structures and stand frames, as well as FOKOR temperature-regulated bodies, delivery bodies, swapbodies and lightweight bodies. The company also offers servicing and spare parts services in Jämsä and Forssa in Finland.
www.jyki.fi
Teknoventure Management Oy is a nationwide investment company that operates regionally in the SME sector. Based in Oulu, the company manages five funds with investment resources totalling some MEUR 50. Teknoventure Management Oy is a part of the Profita Group, which has offices in Helsinki, Turku, Vaasa and Oulu. The Group employs 20 private equity investment specialists and has assets under management amounting to approx. MEUR 200.
www.Teknoventure.fi
Finnish Industry Investment Ltd is a government-owned investment company that promotes Finnish businesses, employment and economic growth through capital investment. The company invests in growth companies, directly and through funds, together with private co-investors. Capital investments are needed for financing the growth of portfolio companies, internationalisation, spin-offs, major industrial investments, and sectoral and corporate restructurings. The targets are in all sectors. The investments of Finnish Industry Investment amount to over MEUR 640. www.industryinvestment.com
More information:
– Mika Rytky, CEO, Nordic TANK Oy,
mobile +358 40 757 6665, mika.rytky (at) obas.fi
– Mauri Visuri, Investment Director, TeknoVenture Management Oy,
mobile +358 40 865 7946, mauri.visuri (at) profitagroup.fi
– Antti Kummu, Investment Director, Finnish Industry Investment Ltd,
mobile +358 50 432 4486, antti.kummu (at) industryinvestment.com
– Aki Sirén, CEO, Jyki Group Oy,
mobile +358 400 541 303, aki.siren (at) jyki.fi