Case: Kiilax will continue to grow – fron Finland to the rest of the Nordic region

With strong growth and healthy profitability, the construction materials company Kiilax has become a force to be reckoned with in its home country of Finland. Through Bergman & Beving’s acquisition, Kiilax’s journey of growth will continue from Joensuu and spread through the Nordic region.

Kiilax is based in Joensuu in eastern Finland, where for 30 years the company has developed products focused primarily on the construction industry. Since the beginning, the company has worked with processing plywood and other wood material in its own production facility, such as manufacturing wooden wedges. Kiilax even means “wooden wedge” in Finnish.

In Finland, Kiilax is also a major contender when it comes to inspection hatches. It has two patented screwless fastening elements that are quick to install. The hatches are carbon-neutral and are also available as heat and smoke vents. Kiilax has posted strong growth of approximately 40 percent in the last two years, with highly favourable profitability, which led to Bergman & Beving taking notice of the company and eventually initiating a dialogue about an acquisition.

“Kiilax is a very well-run and profitable company, with excellent performance measures and a strong market position in its segments. The company’s management is very experienced and motivated, and will retain a 25-percent holding in the company,” says Mats Gullbrandsson, Division Head of Building Materials at Bergman & Beving.

All of Kiilax’s products are manufactured in Finland, either in its own plant or by sub-suppliers close to Joensuu. This reduces the risk of interruptions to delivery and built-up inventory in addition to benefiting the environment. The strategy going forward is to continue to grow in the company’s home market of Finland while entering new geographic markets and retaining profitability.

“Kiilax has the potential to expand its operations to Sweden as well as Norway, and there are several ways to do this as part of Bergman & Beving,” says Mats Gullbrandsson.