In a significant move towards sustainability and enhanced customer service, Finnish company Lapin Kumi and Swedish firm Colmec have announced plans to merge their operations, creating a new tyre services group. This development builds on the earlier merger of Centrala Gummi, a prominent Swedish tyre service provider, with Colmec.
Circularity in Tyre Services
The newly formed entity will emphasise two core principles: circularity and customer focus. The group's mission is to offer a comprehensive circular tyre service that encompasses the entire tyre lifecycle. This includes selling new tyres, routine maintenance, retreading to extend tyre life, and recycling end-of-life tyres. Such an approach aims to drastically reduce tyre industry waste, cut production emissions, and prolong the usage of existing tyres.
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Enhanced Customer Service
Customer service is a key priority for the new group. Both Lapin Kumi and Colmec are known for their high customer satisfaction and strong local relationships. By joining forces, they plan to enhance service coverage and make significant investments in digitalisation to improve the overall customer experience.
Geographical and Operational Focus
Post-transaction, Lapin Kumi will anchor the group's operations in Finland, while Colmec will manage activities in Sweden, Norway, and Poland. The combined entity is expected to achieve a turnover of EUR 250 million and employ around 700 staff by the end of 2024. The merger is backed by the leading Nordic private equity firm Norvestor, which will be the majority shareholder, followed by the management and key employees of Lapin Kumi and Colmec.
Leadership and Vision
Ville Ruokanen, CEO of Lapin Kumi, remarked: "Lapin Kumi has grown rapidly into a national player in recent years. This transaction allows us to further accelerate our growth as a larger group and invest more in sustainability and digitalisation. Norvestor has an excellent track record of developing and growing family businesses, providing resources, insights, and proven operational models from various industries."
Ian Poppelman, Partner at Norvestor and Chairman of Colmec, added: "The establishment of this new group is a landmark transaction to create a more sustainable and customer-oriented player in an industry known for high emissions and varying levels of service quality. We recognised Lapin Kumi as the right partner due to its established market presence, high service quality, and potential for continued rapid growth in the coming years."
Ruokanen also noted that the group's initial focus in Finland would be on integrating Colmec's Finnish operations into Lapin Kumi, including subsidiaries Colmec Oy, Bandaris Oy, and Pentep Oy.
The transaction is set to close in Q3 2024, pending customary closing conditions, marking a significant step forward for the tyre industry in terms of sustainability and customer service.
