OLF: Olainfarm Borrows 14 Million Euros from ABLV Bank to Finance Acquisition of SIA Tonus Elast
Antons Marcenko, Head of Project funding unit of AS ABLV Bank notes: “ABLV offers and provides special custom tailored lending conditions. Lending for large Latvian companied and providing full support service for acquisition transactions is our priority. Long term loan for producer, producing export oriented products confirms our trust in client’s business model, management team and shareholders. This sizeable transaction is a good indication about the investment climate in Latvia – as the local capital is playing an increasing role in development of Latvian economy and improving competitiveness of Latvian companies abroad. We expect that further growth of our loan portfolio will also be predominantly ensured by lending to Latvian based companies.”
Legal support to AS Olainfarm for acquisition of 100% shares in SIA Tonus Elast and for financing was provided by “Glimstedt and Partners” law office.
SIA “Tonus Elast” was established in 1995 and is a producer of elastic medical products, from elastic bandages to complicated corsets for pregnant and lactating women. Products portfolio of SIA Tonus Elast includes more than 100 different product types, bestselling of which are bandages and compression products. The main sales markets are CIS and EU countries, India and the countries of Middle East. A little more than 200 employees are working at production site of SIA Tonus Elast in Nicas novads. Company’s sales in 2015 were 7.3 million euros and it made a net profit of 1.7 million euros.
About AS Olainfarm
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company's operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
About AS ABLV Bank
AS ABLV Bank is the largest independent bank in Latvia. Shareholders of the bank: Olegs Fils, Ernests Bernis and Nika Berne, both directly and indirectly own 86.25% of voting shares. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; ABLV Advisory Services, SIA; New Hanza City, SIA and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Vladivostok, Kyiv, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol and New York.