The new owner of VKG Plokk OÜ is Aeroc International ASNews
16. January 2017
Viru Keemia Grupp concluded a transaction which results in the transfer of VKG Plokk, the group's subsidiary operating in the market of building materials, to Aeroc International AS, a company in the building materials industry. VKG Plokk is a porous concrete block manufacturer that sells its products under the brand name Roclite in Estonia and exports them abroad. The contract of purchase and sale shall enter into force from 16 January 2017.
Viru Keemia Grupp's Deputy Chairman Meelis Eldermann: “We work every day to constantly increase the group's efficiency and competitiveness in volatile market conditions. The decision to sell the subsidiary VKG Plokk is mostly derived from VKG's strategic wish to focus on its main areas of activity, namely oil shale mining and combined oil, power and heat production.”
Aeroc International AS's Board Member Ivar Sikk: “The purchase of VKG Plokk OÜ is an important step in implementing the company's strategy, which will help to improve our competitiveness in the construction block market of the Baltics. We will use the potential of VKG Plokk's plant to increase our production efficiency and expand our production volumes by continuing to manufacture porous concrete products and selling them under the brand name Roclite. By this transaction, Aeroc International AS ensures its position as the largest porous concrete manufacturer in Northern Europe.”
The transaction price will remain confidential by an agreement between the parties. The transaction was advised by law firms LINKLaw and Raidla Ellex, the arrangement of financing was assisted by Redgate Capital.
VKG Plokk had been a part of the group since 2011 and has been manufacturing new generation masonry blocks under the company's brand name Roclite since January 2012. VKG Plokk currently employs 58 people and last year's turnover amounted to 3 million euros.