The merger is a concrete example of Vapo’s new strategy. Vapo revised its strategy earlier this year, selecting the rapidly increasing global market for professional growing as one of the strategic focus areas. “Megatrends such as population growth, urbanization and lack of fresh water are driving the demand for efficiency in local food production”, says Vesa Tempakka, CEO of Vapo Oy.
“The Netherlands is the ‘Silicon Valley’ of horticulture. With BVB, we are at the heart of the horticulture ecosystem and newest technologies. Together we can search for new innovations for best growing solutions close to consumers. The company is a new type of operator in the global horticulture market with the resources to compete in the bigger league”, Tempakka continues.
Kekkilä-BVB Oy’s pro forma net sales will be EUR 240 million, and the company will employ around 500 people. Professional growing will form 48%, hobby and landscaping 39 %, and materials, animal care and recycling 13% of the company’s net sales. 37% of the company’s business will come from the Nordic countries, 27% from the Netherlands, 18% from Central and Eastern Europe. The company has also significant exports to Asia, Africa and to both North and South America. The company has exports to over 80 countries.
Finnish Vapo is one of Europe’s biggest companies in professional growing and the largest producer of horticultural peat. It is a market leader in the Nordic countries with its well established Kekkilä Garden, Hasselfors Garden and Kekkilä Professional brands. The Grow&Care division of Vapo includes the companies Kekkilä Oy, Hasselfors Garden AB and Kekkilä OÜ. The division’s business operations are aimed at professional growers and home gardeners, bedding peat and raw material sales, operations supporting composting and landscaping and animal care products. The total net sales of these operations amount to approximately EUR 125 million. The company employs around 250 people in Finland, Sweden, Estonia and Spain. Products with the Kekkilä Professionals brand are currently exported to over 80 countries.
Vapo Group is a EUR 420 million company that employs about 700 people in Finland, Sweden and Estonia. They have three divisions; Grow&Care, Energy and New Businesses. The Energy-division operates under the names Vapo Oy, Neova AB and AS Tootsi Turvas.
BVB Substrates B.V is a 110-year-old family company, based in the Netherlands, the homeland of professional growing. The main business operations of BVB are professional horticulture, retail and operations aimed at landscaping. The main target groups for professional horticulture products are growers of foodstuff such as salads, herbs, mushrooms and soft fruit, ornamentals and tree nurseries. The company’s total net sales are approximately EUR 125 million, employing around 280 people. The company’s products are marketed mainly with the BVB Substrates brand. In addition to Europe, BVB has sales offices in locations including the US, Spain, Belgium, Germany and Australia, and exports to over 80 countries.Back to transactions