VLET Holdings Finalizes Acquisition of Polish Tissue Specialist Velvet CARE

VLET Holdings, a subsidiary of the Abris CEE Mid-Market III LP fund managed by Abris Capital Partners Ltd, has acquired the majority shares of Velvet CARE. The transaction has been also approved by the Office of Competition and Consumer Protection (UOKiK).

Velvet CARE is a leading Polish manufacturer of cellulose hygiene products (such as tissues, toilet paper, paper kitchen towels) and the owner of the iconic Velvet brand in Poland. 

The recently completed procedure of purchasing the majority shares of Velvet CARE by Abris Capital partners means strengthening the company's dynamic development strategy, including international expansion within the Central and Eastern European region. Abris Capital Partners has experience in the field of paper hygiene products in this region, as being the owner of the Pehart Tec, a leading manufacturer of tissue paper and hygiene products on the Romanian market. Having two significant players in the hygiene paper industry in Central and Eastern Europe in its portfolio, Abris Capital Partners will be the owner of producers manufacturing more than 220,000 tpy of tissue paper.

Velvet CARE was established in August 2013, but its roots date back to 1897. It was at that time when paper mill was established in Klucze near Olkusz, where the main production plant has been located for 120 years. The heart of the company is Velvet - a hygienic product brand enjoying the highest popularity in Poland, introduced in 1997, on the 100th anniversary of the factory. Since then, the Velvet brand has been the undisputed branded leader of the hygienic paper  categories in Poland.

Velvet CARE is a dynamically developing company. Only in the last four years, three strategic projects have been implemented, nearly PLN 250 million have been invested in installation offive5 new production lines, the construction of a new warehouse for high-end finished goods and most importantly, a new paper machine. As a result, production capacity has doubled to meet rapidly growing orders and customer needs, to strengthen the position of the branded leader and to accelerate expansion on Private Label territory.

It is worth noting that TM 7, recently launched in Klucze, is a technologically proven machine, ensuring high productivity. Velvet CARE is currently one of the most modern plants producing paper hygiene products in Central and Eastern Europe.

The recent investments created new additional jobs in the plant that sets technology trends in Central and Eastern Europe. In the last 12 months, Velvet CARE has employed over 100 new people and the team currently consists of almost 600 employees. Velvet CARE is the largest employer in the Klucze commune and one of the more important in Malopolska region. 

"We are pleased that from the moment of signing the contract, we have managed to successfully close the acquisition of Velvet CARE in less than three months. Our approach to this investment is consistent with our long-term investment strategy - make Velvet CARE a leading player in Central Europe. We are convinced that together with such an experienced team as Velvet CARE has, we will achieve this goal in a few years. "- says Paweł Gieryński, Managing Partner at Abris Capital Partners. 

Artur Pielak, President of the Board of Velvet, comments: "One of our key principles inscribed in the company's DNA is to focus on the dynamic company development and on achieving ambitious goals. Therefore, we feel responsible for the selection of business partners who will help us to fulfill these goals. While opening the next chapter in the company's history, this time with our new partner Abris Capital Partners, we share a similar approach to business. We will continue to focus on international expansion through the acquisition of strategic entities in our region, as well as through organic development in selected markets of Western Europe. "

Abris Capital Partners is an independent private equity fund manager which invests in Central & Eastern Europe. Abris manages the capital commitments of many prestigious, international institutional investors including university endowment funds, pension funds, insurance companies and private asset managers. 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.