Abris Capital Partners has closed its previously announced acquisition of a majority stake in Velvet Care, a Polish maker of personal hygiene products. No financial terms were disclosed.
WARSAW, Poland, May 30, 2018 /PRNewswire/ –On 28 May 2018, VLET Holdings S. a. r. l., a subsidiary of Abris CEE Mid-Market Fund III LP, a private equity fund managed by Abris Capital Partners Ltd., acquired a majority stake in Velvet CARE Sp. z o.o. This transaction has also been approved by Poland’s Office of Competition and Consumer Protection (UOKiK).
Velvet CARE is Poland’s leading manufacturer of brand-name, paper-based personal care products (including tissues, toilet paper and kitchen paper towels) and the owner of the highly-regarded Velvet brand in Poland. Velvet CARE can boast of having more than 20 years of success on the Polish market, with brand recognition recorded at an impressive 96% among Poles.
The process of passing control over Velvet CARE to the new majority shareholder has now been completed. The change will facilitate further acceleration of the company’s rapid growth, including international expansion in the CEE region. Velvet CARE was established in August 2013, although its origins date from 1897. In that year the Paper Mill in Klucze was established and the company’s main manufacturing facility has been located there for over 120 years. The Velvet name, the brand underpinning its paper-based hygiene products, was launched in 1997 on the 100th anniversary of establishing the company. Today, the Velvet brand has grown to become the leader among paper-based categories and the most popular tissue brand in Poland.
“We are delighted that in less than three months from the time of signing the agreement we have been able to complete the acquisition of Velvet CARE successfully. Our approach to this investment reflects our long-term investment strategy of turning Velvet CARE into a leading manufacturer in Central Europe. We are convinced that we will achieve this target in a few years by working hand-in-hand with the highly seasoned management team at Velvet CARE,” says Paweł Gieryński, Managing Partner of Abris Capital Partners.
Artur Pielak, CEO of Velvet CARE Sp. Z o. o. remarks: “One of the core principles hardwired into our company’s DNA is the drive to grow the business rapidly and deliver on ambitious goals. For that reason, we appreciate the great accountability involved in selecting the business partners who will help us attain those goals. As we open a new chapter in the company’s history, this time with Abris Capital Partners as our new partner and with whom we share a similar approach to business, we are poised to pursue a path of international expansion by acquiring attractive entities in our region while also growing organically in Poland as well as on selected western European markets.”
Abris Capital Partners
Abris Capital Partners is an independent private equity fund manager which invests in Central & Eastern Europe. Since its inception in 2007, Abris has secured cumulative commitments of approximately €1.3 billion from investors, all targeted at mid-market opportunities in CEE.
Since 2007, Abris funds have made more than 20 investments in Poland and elsewhere in CEE.