Ponsse signed a deed of sale, in which it agrees to purchase all shares in KŘENEK FOREST SERVICE s.r.o (hereinafter “Krenek”), its PONSSE forest machine and service dealer in the Czech Republic. The aim is that PONSSE services in the Czech Republic will transfer to Ponsse Group by 1 April 2022. The company will operate as a subsidiary wholly owned by Ponsse.
Krenek’s employees will continue in the service of the purchased limited liability company under their current employment contracts and benefits. Ponsse has prepared a comprehensive integration plan that will ensure a positive continuation of the local business and sufficient induction for the employees.
The business arrangement has no impact on the previous guidance. The price of the transaction between Krenek and Ponsse will not be made public by mutual agreement, because the purchase price has no impact on the measurement of Ponsse’s value. The purchase price will be paid in cash on the condition that certain requirements set for the transaction are fulfilled. Ponsse will finance the acquisition from its cash assets.
PONSSE forest machines have a market share of about 20% in cut-to-length (CTL) harvesting in the Czech Republic, and there are 290 PONSSE forest machines in the country. This change will not interrupt the local PONSSE services, which include machine sales, maintenance, spare parts services, and training. Ponsse will continue to operate in Hostinné in the same facilities in which Krenek’s services are currently located.
Krenek has been Ponsse’s official dealer since 2013, having operated for ten years through Wahlers Forsttechnik GmbH, Ponsse’s dealer in Germany. In 2020, a total of 34.5 million m3 of wood was harvested in the Czech Republic, with nearly all harvesting operations centred in areas damaged by bark beetles.
Ponsse Plc specialises in the sale, production, maintenance and technology of cut-to-length method forest machines, and is driven by a genuine interest in its customers and their business operations.
