Support for development and growth
Europak is a Finnish company with a long history in the plastic packaging industry. The firm was owned by the same family and the firm’s CEO, until Korpi Capital joined as a shareholder at the end of 2020. The Hotti family left the company, but CEO Harri Laaksonen continues leading the firm after 30 years with Europak. With the acquisition, the company received capital and expertise in order to develop and grow its operations.
Europak was founded in 1980, when the Hotti family began producing plastic products in Espoo. The current CEO Harri Laaksonen started his career at Europak in 1987 as a Sales Manager.
– I had gone to school in Turku and Europak was my first job. I had no prior expertise in the plastics industry, and simply noticed a job advert in Helsingin Sanomat. I first progressed from Sales Manager to the marketing department, and for the past 21 years I have served as the CEO. My stake in the firm has grown gradually over the years, Laaksonen explains.
To date, Laaksonen has worked for Europak for over 30 years.
– I have truly enjoyed my time at Europak. As someone from Turku, the biggest challenge has really been adapting to Helsinki, but that’s it, grins Laaksonen.
Currently, the Europak factory in Espoo produces plastic packaging and blow moulded technical parts. The main products include plastic canisters and bottles. Apart from producing and selling their own products, Europak also imports plastic barrels.
– We work in three shifts. The factory operates in our own building, which we moved into in 1995. We have very effective and new machinery. This has been a strategic choice – we aim to continuously update and develop our competitiveness, Laaksonen recounts.
Korpi made it possible to continue just like before
The acquisition process with Korpi Capital began in the end of 2020, when the Hotti family and Laaksonen had already decided that the entire share capital of Europak would be sold. Behind the decision to sell was the relatively old age of the Hotti family – the owners were already in their 70s. Since no suitable buyer was expected to be found domestically, the owners turned to international markets. The search had already started, when Laaksonen was approached by an M&A broker, who expressed that a Finnish investment firm would be prepared to buy the entire share capital of Europak.
– At that point the name Korpi came up, and we were able to arrange direct negotiations. Korpi was a completely new actor to us, and thus we investigated their background thoroughly. It became clear to us that they do not operate like a traditional private equity firm, but rather invest directly from their own balance sheet. I was very fond of this, Laaksonen thinks back.
As the negotiations continued, it became clear to Laaksonen that Korpi was not after a quick exit, but rather a long term investment.
– It is important to us that the operations continue here in Espoo, and perhaps elsewhere in the future, as well. Further, it is crucial to us that our long-standing, reliable employees would continue to serve Europak, Laaksonen stresses.
Cooperation supports Europak’s growth
Currently, then, Europak’s day-to-day routines continue as per usual. The biggest changes can be seen in the functions of the board. With Korpi joining the board, it gathers more regularly and is also otherwise more active. This provides a good basis for aspiring to grow even more in the future.
– The way I see it, partnering with Korpi was a very successful measure. We received expertise for board work and capital for developing our operations. We have, for instance, managed to deploy much of the previously existing dry powder, Laaksonen recounts.
– Cooperation with Korpi gives us a good basis for our growth targets, be it organic growth or new acquisitions, Laaksonen notes.
The family firm wanted as reliable a buyer as possible
– During the process I got to know our current board members, Tatu Mäkimartti and Mikko Fischer. They are young and very dynamic.
Mathematical analysis and general initiative emerged already in the early stages, I had a good first impression. Mäkimartti’s background and personality, for instance, impressed me. He is very diligent and pedantic. I have similar tendencies, and want everything to go as planned. Together I am sure we are able to deliver, Laaksonen describes.
Even though Korpi managed to convince the Hotti family and Laaksonen with their competence, the decision to sell was not easy. Europak is a family firm with a long history, and letting go felt difficult.
– In a case like this, finding a reliable buyer is important. If such a buyer is found, many family owners would be rather happy to sell, Laaksonen ponders.
The CEO has freedom to operate
After all, the process starting with the first negotiations, continuing to the establishment of a holding company and completing with the acquisition itself went rather quickly. The only hindrance was posed by the rounds of financing, which were necessary due to the relatively large size of the deal.
– If it were only for Korpi, we would have been able to complete the process even faster, Laaksonen remarks.
After the acquisition Laaksonen continues as the CEO of Europak, per Korpi Capital’s request. He is grateful for the fact that Korpi has, in his own words, allowed him exceptional freedom in his position as CEO.
– Korpi has not wished to take part in the operational activities of the firm. A strong mutual trust exists between us, and this approach has proven to be suitable for both parties, Laaksonen commends.