Flügger group A/S (CPSE:FLUG B) entered into an agreement to acquire 70% stake in Eskaro Group AB on November 24, 2020. Under the terms of the transaction, Flügger group will pay a total consideration of DKK 208 million for a 70% share which is partly reached by purchase of shares and partly by capital increase. Upon completion of the transaction, Flügger group will hold 70% stake in Eskaro while Igor Chumakov, co founder of Eskaro, will retain the remaining 30%.

Eskaro will continue to operate as an independent entity in Flügger group. Pursuant to the transaction, Igor Chumakov will continue as Chief Executive Officer of Eskaro after closing. The deal is subject to approval by the competition authorities, of which full approval is expected to be granted in early 2021.

The acquisition of Eskaro is expected to have a positive effect on Flügger group' revenue and earnings in the 2020/21 financial year, but the scope of the effect depends on the timing of the authorities final approval of the transaction. Martin Simovart, Jesse Kivisaari, Guntars Zile and Darya Zhuk of Cobalt Legal acted as legal advisor for Flügger group A/S. Baker McKenzie acted as legal advisor for Flügger group A/S in the transaction.