#Sweden #Bjelin Group #Woodura #Helsingborg #SVP

Strategic Value Partners Invests €200 Million in Bjelin Group

On January 13, 2025, Strategic Value Partners, LLC (SVP), a global alternative investment firm, announced a significant €200 million preferred equity investment in Bjelin Group. This investment aims to promote Bjelin Group's long-term growth strategies and enhance its positioning in the sustainable wood flooring market, particularly through the use of innovative Woodura® technology.

Bjelin Group, fully owned by the Pervan family, boasts a 51% ownership stake in Välinge Group and a complete ownership of Bjelin Industries. The latter is recognized for its production capabilities in Croatia, dealing primarily with veneer, flooring, and furniture manufacturing. In a strategic move, Bjelin Group will also acquire all shares of Välinge's industrial business, subsequently merging it with its own manufacturing arm.

This merger is set to transform the landscape of wood flooring production in both Sweden and Croatia, benefiting from Välinge Group's extensive research and development as well as its strong licensing business. Additionally, SVP's investment will not only support this acquisition but also fund Bjelin's forthcoming major investments aimed at positioning the company as a leader in the sustainable wood industry.

Darko Pervan, the Chairman and founder of Bjelin Group, stated, "Our alliance with SVP transcends a mere financial arrangement. Given our existing collaboration with SVP's portfolio company Pfleiderer, a producer of premium wood-based products, we are poised to explore further commercial and technical cooperation."

Leading Bjelin Group into this new era of growth will be Fredrik Alfredsson, who has been appointed as the new CEO. With his extensive international experience in the flooring industry, Alfredsson is expected to drive innovation and oversee the integration of the newly acquired business.

Brian Himot, SVP's Head of Structured Capital, expressed confidence in the partnership saying, "Darko Pervan has established an impressive IP licensing business and laid the groundwork for a robust industrial manufacturing entity. We are thrilled to collaborate at such a pivotal moment for the growth of this business."

The investment also highlights the critical importance of sustainable practices in modern manufacturing. Over the last seven years, significant resources have been allocated towards developing Woodura® production capability, a sustainable flooring technology that has positioned Bjelin on a path to achieve substantial growth in license revenues.

With an investment of about €500 million into production and marketing skills, Bjelin and Välinge have managed to secure essential oak materials for their Woodura®-based products, leading to a wealth of patents and deeper industry knowledge.

As part of this investment strategy, Citi and Nordea acted as joint placement agents, facilitating SVP's comprehensive investment plan. Legal counsel for SVP was provided by Kirkland & Ellis, Schjødt, and Wolf Theiss, while Bjelin Group engaged Mannheimer Swartling as their legal advisor.

This ambitious venture represents a new chapter for Bjelin Group, aimed at elevating its status as a frontrunner in eco-friendly and sustainable flooring solutions. The anticipated completion of the merger with Välinge's industrial segment is set for the first quarter of 2025, pending standard closing conditions and necessary government approvals.

In conclusion, the collaboration between SVP and Bjelin Group not only signifies a considerable financial input but also instills hope for advancements in sustainable production techniques in the wood flooring sector, promising to yield long-term benefits for both companies involved and the environmental landscape at large.