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Coop Pank financed the expansion of the metal business of Alexela Group

Alexela Group, active in the energy, industrial and real estate sectors, has expanded its portfolio of services in the metal business and acquired Vasar OÜ, the largest producer of electrochemical coatings in Estonia. The domestic bank Coop Pank helped finance the deal.

Andreas Laane, CEO of Alexela, said that the acquisition of Vasar OÜ has significantly expanded Alexela’s metal business: “A wide selection of electroplating or electrochemical coatings has been added to the range. Until now, we primarily offered hot-dip galvanizing services to metal processing companies, but now we also have a very wide range of services in the field of various coatings. The most common of these are galvanized, nickel-lined, chrome-lined and tin-lined coatings, which provide metals with corrosion protection and a pleasant appearance.”

According to Laane, the goal of Alexela is to make coatings production more profitable: “We want to offer coatings production services throughout the Baltic region in order to increase the competitiveness of the local metal industry in the domestic and export markets.”

Estonian-owned Coop Pank helped Alexela finance the purchase of Vasar OÜ. “When deciding on financing, the determining factor was that Vasar OÜ is a well-functioning local company with a long history, demonstrating flexibility in the implementation of modern technologies. The merger of such a company with the Alexela Group will significantly enrich Alexela’s existing range of services for the metal industry. The company plans to continue its current strategy based on sustainable production capabilities and offer operational solutions for the needs of companies in the Baltic region,” explained Lehar Kütt, Head of Business Client Financing at Coop Pank.

By agreement of the parties, the price and details of the transaction were not disclosed.

Alexela’s fields of activity include energy, industry, and real estate. Alexela Group includes Kiviõli Keemiatööstus, the metal company Kohimo, the Tiki Trailer manufacturer Bestnet, hot-dip galvanizing plants in Estonia (in Paldiski) and Finland (in Rauma). Alexela Group is an employer for more than 1000 people all over Estonia. After the transaction, all Vasar OÜ employees will retain their jobs.

Estonian-owned Coop Pank is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking is 112,400. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti comprising 330 stores.