The Estonian office of TGS Baltic has advised the Astel Group on its acquisition of a 95% shareholding in Rakvere Metsamajand, the oldest timber log house manufacturer in the Baltics, from Viru Puit.
The Astel Group is a group of companies that produce and install modular houses to the Estonian and Swedish markets. Its range includes garden houses, saunas, garages, and bigger summer houses. In production, different log profiles are used, and in addition to laminated prunes, the main raw material used is pine. Its products are exported to Scandinavia and Europe, as well as to Japan and Australia.
Rakvere Metsamajand (Rakvere Forest Industry Ltd.), which operates under the Nordic Timber Homes trademark, was founded over 45 years ago as the first company in the Baltics to has produce milled log houses. It has been operating as a privately-owned company since 1994, when the current shareholders privatized it from the state. According to TGS Baltic, "now Rakvere Metsamajand produces high-quality and eco-friendly wooden squared log houses and frame-houses for numerous private and commercial uses, as well as windows, doors, terraces, barriers, stairs and wooden shutters."
TGS Baltic's advice included carrying out a legal audit, consulting on the transaction structure, and drafting transaction documents. The firm's team was led by Partner Sander Karson and included Associate Kart Raud.