Huurre Group has sold its refrigeration business division Porkka Finland and its subsidiaries to fellow Finnish firm, Festivo.
The refrigeration division companies included in the transaction are Porkka Finland, Porkka UK, Porkka Scandinavia and Porkka Norge. The UK branch is based in Watford.
The manufacturer’s products include freezers and refrigerators, coldrooms, hot and cold counters and ice machines.
Porkka stated that as the deal included all of its companies, all personnel will be maintained and all subsidiaries will continue to operate as before.
Chairman of the board Ari Anttonen said: “We believe Festivo will make an excellent owner and partner for Porkka customers and employees going forward.”
“This is an excellent solution for our business – the companies have a common history.”
Festivo CEO Lasse Korpela added: “The acquisition will enable us to form a strong Finnish refrigeration equipment manufacturer that is internationally competitive. By combining the functions, we will be able to gain efficiency and sales power in important market segments for us.
“We have recognised that the merger will bring synergy benefits, which we believe will significantly improve the company’s financial performance and competitiveness.”
The combined turnover of the companies last year was just over €50m, employing around 300 people.
The merger will create four business areas for Festivo within the food cold chain: commercial kitchen refrigeration, home refrigeration, medical and laboratory refrigeration, and custom refrigeration. The company has three production facilities.
As part of the arrangement, Festivo has issued a €13m 4-year covered bond. The bond will reorganise Festivo’s current financing and is aimed at strengthen the working capital of the new group. Taaleri Kapitaali was Festivo’s financial advisor and arranger of the bond.