Harvia divests its ownership in EOS Group’s Russian operations
Harvia Plc Inside information November 7, 2022 at 5:30 p.m. EET
Harvia divests its ownership in EOS Group’s Russian operations
Harvia Plc has today signed an agreement to sell its 80.0% shareholding of EOS Russia to Mr. Vasilij Sosenkov. At present, Mr. Sosenkov, Managing Director of EOS Russia, holds 20.0% of the shares in OOO EOS Premium SPA Technologies, the company operating EOS Group’s Russian operations. After the transaction has been completed, Mr. Sosenkov will own 100.0% of EOS Russia.
The transaction price is at maximum EUR 600,000, of which EUR 400,000 will be paid during 2022.
“Harvia suspended its operations in Russia at the beginning of March 2022 due to the Russian invasion of Ukraine. We have discontinued Harvia branded business in Russia completely and will now exit the Russian market altogether as Harvia’s ownership in EOS Russia is sold,” says Tapio Pajuharju, CEO of Harvia Plc.
According to the agreement, all references to EOS or Harvia will be removed from the Russian company’s name, brand names or similar. EOS-related intellectual property rights will stay in Harvia’s ownership. Additionally, the company has not and will not have any distribution or similar agreements with Harvia Group companies. The employees of the company will continue in the service of the company.
Closing of the transaction is subject to official approvals in Russia.
Sales in Russia accounted for 6.4% (EUR 11.5 million) of Harvia Group’s revenue in 2021. Harvia does not have a production facility in Russia.
For more information, please contact:
Tapio Pajuharju, CEO, tel. 200
Ari Vesterinen, CFO, tel. 440
Harvia is one of the leading companies operating in the sauna and spa market globally, as measured by revenue. Harvia’s brands and product portfolio are well known in the market, and the company’s comprehensive product portfolio strives to meet the needs of the international sauna and spa market of both private and professional customers.
Harvia’s revenue totaled EUR 179.1 million in 2021, of which 79% came from outside Finland. Harvia Group employs more than 700 professionals in Finland, China and Hong Kong, Romania, Austria, United States, Germany, Estonia and Russia. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.
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