Earlier this summer, Finnish Lapin Kumi and Swedish Colmec, two independent tire services companies, announced their intention to join forces. The Finnish competition authority has now approved the transaction. The deal is set to close during September 2024, subject to customary closing conditions.
Following the transaction, the new group’s operations in Finland will be centered around Lapin Kumi, while Colmec, Centrala Gummi and multiple local tire shops represent the group in Sweden, Norway and Poland. The combined group is expected to reach a turnover of EUR 300m and 800 FTEs by the year end 2024. The transaction is backed by Nordic private equity firm Norvestor. Following the transaction Norvestor will remain as the majority shareholder in the group, followed by key employees of Lapin Kumi, Colmec and multiple local tire shops.
“The tire industry is ready for a more serviced-minded and customer-focused group, challenging the status quo. We look forward to continuing Lapin Kumi’s growth journey and build a strong Finnish team together with Colmec Finland and Pentep. We also look forward to sharing many of Lapin Kumi’s success factors with other entrepreneurs in the group“ says Ville Ruokanen, CEO of Lapin Kumi.
“The Lapin Kumi partnership is an important next step towards building a new Northern European tire services group, with strong focus on customer service and a sustainable offering. We welcome Ville and colleagues, who will be central in driving the group’s continued Finnish expansion” says Ian Poppelman, Partner at Norvestor and set to become Chairman of the new group when the transaction closes.
The transaction is expected to close during September 2024, subject to customary closing conditions.
Lapin Kumi is a family business founded in 1947 in Rovaniemi. The current CEO, Ville Ruokanen, represents the third generation in the business, which began with his grandfather Veikko Keskiruokanen repairing rubber boots. The company operates in 14 locations, with a separate retreading plant in Rovaniemi. Lapin Kumi employs 207 permanent staff, and during peak tire-changing seasons, more than 300 are employed by the firm. Last year, the company’s revenue was €56 million.
Colmec is a fast growing OEM independent tire services provider in Sweden, Norway, Finland and Poland. Colmec is a leader in the service and distribution of truck and bus tires. The company also host a strong tire retreading operation, which actively help tire owners to prolong the life of their tires.
The Norvestor Group is a leading private equity company focused on lower mid-market buyouts in the Nordic region. The team has worked together since 1991, making it one of the most experienced private equity teams in the Nordics, having executed 93 platform investments with more than 500 add-on acquisitions, in addition to executing 60 exits, including 16 IPOs. The team comprises 50 professionals, with offices in Oslo, Stockholm, Helsinki, Copenhagen, Berlin, London and Luxembourg. Norvestor funds target growth companies in the Nordic mid-market that have the potential to achieve a leading Nordic or international position, by investing in people, capabilities and initiatives that drive sustainable organic growth, as well as through acquisitions across fragmented industries or geographic expansion. The Norvestor group currently advises and manages funds with a committed capital of close to EUR 5.2 billion. The current Norvestor portfolio companies employ more than 30,000 people. Read more at www.norvestor.com
For more information
Ville Ruokanen, CEO, Lapin Kumi Oy: ville.ruokanen@lapinkumi.fi
Ian Poppelman, Partner, Norvestor Advisory: ipo@norvestor.com
