The majority share of Kentek Oy, a distributor of components for heavy duty on-road and off-road equipment and provider of related engineering services, will be acquired by Diploma PLC, a company listed on the London Stock Exchange. Kentek is one of Europe’s leading suppliers of filters and is the largest in the Russian market. The company’s annual turnover will reach approximately 21 million euro and it employs 100 people.
Kentek’s customers include OEM machinery manufacturers, industrial maintenance providers, contractors, repair shops, rental machinery agencies and private traffic contractors. The company’s most significant and fastest growing market territory is Russia. Kentek also has offices in the Baltic countries. The finalization of the acquisition is subject to the approval of Russian competition authorities.
We absolutely wanted to find a good buyer that is large enough to be able to invest developing Kentek further and that would be able to provide products to expand the product portfolio. Diploma meets these criteria to perfection, says Markku Blomqvist, majority owner and Managing Director of Kentek.
The current management will continue to hold 20 % of Kentek’s stock and will continue to work at the company under new majority ownership.
With new ownership I am able to bring in fresh capabilities, meaning my main goal is further development of Kentek’s business. We have grown 30% year over year, but I found it important for the future that we are able to expand our offering to clients, says Markku Blomqvist.
Diploma PLC has three main business sectors: Life Sciences, Seals and Controls. Seals are a key product group that will enhance Kentek’s offering to end user clients because frequently they use both Kentek’s products and seals and gaskets in their machinery. In the future, Kentek plans to establish more offices in Russia in addition to St. Petersburg and Moscow. The acquisition will provide support to these growth initiatives.
Diploma’s turnover is over 300 million euro and its market value is approximately 900 million euro. In addition to Europe, the company has offices in North America, Asia and Australia.
ProMan advised the Seller throughout the whole sales process.