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Toom Tekstiil, the largest employer in Viljandi County, is a client of Coop Pank

Coop Pank continues introducing its clients. Every client, whether a person or a company, teaches us something new and interesting.

Local textile manufacturer Toom Tekstiil is one of our clients whose activities inspire us every day.

Toom Tekstiil is an excellent example of the development of business outside Harju County. One of the biggest employers in Viljandi County plans to grow strongly and invest in technology and people.

When was Toom Tekstiil established and what are the main goals of the company?
Toom Tekstiil was established in 1995 and it is one of the largest employers in Viljandi County. The company got itself new local owners in late August and their goal is to continue producing textile and furniture products for the Estonian market and export in Viljandi and Abja-Paluoja.

Who are the owners of Toom Tekstiil and why was the company put up for sale?
In late August, the former shareholders of Toom Tekstiil Illimar Toom and Innar Susi decided to sell the 70% majority shareholding that belonged to them via the company and entered into an option for selling the remaining 30%. The buyer is Smart Production Nordic OÜ, which will bring investors with extensive experience in manufacturing and the textile industry to the group.

The group of investors that bought the company is represented by Vahur Roosaar, who has been the CEO of Toom Tekstiil since May and will continue in this position after the transaction as well. Roosaar, who is from Viljandi, has worked for Toom Tekstiil in the past as well. The other member of the management board of Toom Tekstiil in addition to Roosaar will be Peep Armväärt, who is also a former long-term employee of Toom Tekstiil.

According to the founder of Toom Tekstiil, Illimar Toom, the decision to sell the company was made because the former owners wanted to focus on other things.

Why did you choose Coop Pank as the financier?
Coop Pank was seriously interested in the project from the get-go and the bank’s vision of how to finance the transaction overlapped largely with ours. As the transaction was relatively complicated, we had to consider many different aspects and be flexible. Coop Pank was very professional throughout the process, which was one of the most critical aspects that made completing the transaction possible. We really value their competence and ability to finance such large transactions. It’s noteworthy that even though some strong companies based on foreign capital were also interested in acquiring Toom Tekstiil, it was the financial solution offered by a local bank that allowed the company to remain based on Estonian capital in the end.

What does Toom Tekstiil produce and which products can be seen in shops?
The company’s state-of-the-art and high-tech production equipment, highly qualified employees and close cooperation with clients in product development allows it to offer a broad selection of textile products and nonwoven materials to various customer groups. The main product groups are duvets, pillows, mattress covers, cushions, bed linens, mattresses, spring beds and upholstered furniture. We also make needle-punched nonwoven materials and cotton batting. The products are sold under the brand names Dreamland, EVE and Lifestyle Interior.

Are the new owners planning to make any changes?
According to Vahur Roosaar, there are no plans to make drastic changes in the company’s activities, but certain alterations in production and sales are necessary. Toom Tekstiil is a strong and well-known business in its area, which is a strong foundation for future activities. The company plans to continue manufacturing textile products for the Estonian market and export. The goal is to double business volumes in a couple of years and make Toom Tekstiil more profitable. In addition to the present business, the company also wants to focus on products and clients that create more added value, which requires further investments in technology, development, people and processes. Competing with global mass production may be difficult for Estonian manufacturers, but our opportunity lies in taking advantage of local strengths: higher quality and smarter production. Estonian textile and furniture producers are known, especially in the Nordic countries, for their high quality, which creates export opportunities for us. For Peep and me, this is a return to our former place of work, this time as the owners.

What makes the products of Toom Tekstiil special?
All the products of Toom Tekstiil are certified and comply with the Öko-Tex 100 quality conditions.

Where is the best place to buy the products of Toom Tekstiil?
You can buy the products in the Toom Tekstiil factory shop in Viljandi and in the Dreamland shop at Leola 53. They sell pillows, duvets, duvet covers, bed linens, cushions, tablecloths, beach mattresses and many other products at affordable prices.

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