Flügger group A/S has signed an agreement to purchase 60% of the shares in Unicell Poland Sp. z o.o., a paint manufacturer based in Wasilków, Poland. The majority of Unicell’s products are sold to dealers, builders’ merchants and other retailers. The company has approx. 200 employees and generates revenues of approx. DKK 145 million a year. Flügger has had activities in Poland since 2004, and today the group has production facilities and offices in Gdansk and a network of 57 of its own shops. Until now, the Flügger group has only been selling its own products on the Polish market via its own shops. In acquiring Unicell, the group has thus expanded its presence in Poland to include sales to independent dealers and builders’ merchants (DIY).
Unicell exports to 32 countries, but most of its sales are to the Polish market, where approx. 85% of revenue is generated. In 2018, Unicell posted revenue of DKK 145 million, EBIT of DKK 17 million and EBITDA of DKK 20 million. Unicell has approx. 200 employees.
The acquisition of Unicell is part of Flügger’s Securing the Legacy strategy of growing through acquisitions while focusing on emerging markets, including Poland. The acquisition gives Flügger access to and insights into Unicell’s competencies within the DIY sector – an area which Flügger is keen to develop further and where it wants to increase profitability. Likewise, Flügger’s existing network, volume and brand will strengthen Unicell’s possibilities for creating further growth within its own as well as new products and services.
Trigon Investment Banking served as sole financial advisor to Flügger, with Baker McKenzie advising Flügger on legal matters.
Jimmi Mortensen, CEO of Flügger group A/S said
“Unicell is a well-run company which has posted solid results for many years. They have strong sales in Poland, and in recent years have seen satisfactory growth, which they expect to continue. We see several synergies between Flügger and Unicell, and in particular we’re looking forward to building on Unicell’s impressive results within the DIY sector as well as within private label.” Unicell was established in 1998 by a Dutch and a Polish family, with both the founders and two members of the second generation of the Polish family now part of the company’s daily management in positions they will continue to hold in future.”
Roman Sawulski, Co-founder and CEO of Unicell added
“Becoming part of the Flügger group strengthens Unicell significantly. The acquisition gives us more clout in terms of production volume and planning, as well as the possibility of exploiting synergies in areas such as product development and procurement. This will benefit both Flügger’s and Unicell’s customers. We complement each other well and have a shared understanding of how the company should be managed and developed. We’re very much looking forward to the new possibilities which will open up through becoming part of the Flügger group. The timing is perfect, as we will soon be handing over the business to the next generation in Unicell, and facing the next stage in the development of our business.”