Industry arrangement of forestry logistics
3J Partners Oy acted as financial advisor to Konne Group and Tarkkala Group
in an arrangement where family-owned groups providing logistics services for forest industry side streams merge together and private equity investor Sponsor Capital joins the new Group as the majority shareholder. The current key employees of Tarkkala Group and Konne Group will retain a significant ownership of the new entity and will continue in key roles in the new group. The completion of the transaction is subject to approval by the Finnish Competition and Consumer Authority.
The new company will be a leading player in the logistics of forest industry side streams in Finland. The company’s service offering covers, among other things, the transport of forest industry by-products, in-house logistics of forestry plants and chipping services. The company’s main customers are leading forest and energy companies in Finland.
Tarkkala and Konne Group are long-standing family-owned businesses that have grown strongly both organically and through acquisitions. The merger of the companies will create a unique entity with a turnover of more than EUR 60 million in 2024 and employing more than 300 people across Finland.
Mika Liimatainen, CEO of Konne Group, will be appointed President and CEO of the new Group. Petri Tarkkala, President and CEO of Tarkkala Group, will be appointed Executive Vice President of the new Group and will assume responsibility for the Group’s logistics business. The key employees of both companies will continue in key roles after the transaction.
“Our customers’ demands are constantly increasing, and we want to be the best partner for them. The development of the service and modern equipment investments require financial investments. Sponsor Capital’s capital base, experience in growing companies and a well-functioning partnership model create excellent conditions for developing the company into a market leader. The growth also brings new opportunities for our excellent, committed employees,” says Mika Liimatainen.
“The most competent and satisfied personnel in the industry have enabled our growth so far, and our growth will continue to be based on them. Our other pillar is our satisfied customer base, which we will be able to serve in an even wider area and with an even more comprehensive range of services after the arrangement,” comments Petri Tarkkala.
“The new company is in an excellent position to take advantage of the transformation of the industry, where customers expect flexibility from their logistics partners, the ability to invest in modern, environmentally friendly equipment, and investments in sustainability, digitalization and occupational safety. Konne Group’s and Tarkkala’s modern equipment, high customer satisfaction and ambitious management provide a strong foundation for future growth,” says Matti Virolainen, Partner at Sponsor Capital.
Konne Group
Konne Group is a Finnish family-owned group of companies specialising in logistics services, with focus on the transportation of forest industry side streams, including chips, sawdust, pulp and sawn timber. The company is known for its flexibility, modern equipment and long-term customer relationships. The Konne Group consists of Konnekuljetus Oy, KonneService Oy, Kosken Megawatti Oy, Matec-Trailer Oy and JM Metsänen Oy. In 2024, the Group’s turnover was over EUR 35 million and the company employs nearly 200 professionals.
Tarkkala Group
The Tarkkala Group is a Finnish family-owned company that offers specialized logistics solutions for the forest industry and the energy sector. Efficient operations, local knowledge and a strong customer focus are the cornerstones of the company’s operations. The Group consists of Tarkkalan Kuljetus Oy, Tarkkala Terminaalit Oy, Tarkkala Logistiikka Oy and Tarkkala Tehdaspalvelut Oy. The Group’s turnover in 2024 was almost EUR 25 million, and it employs approximately 150 people.
Sponsor Capital
Sponsor Capital is a Finnish private equity investor that has been operating since 1997. The company does majority investments in medium-sized Finnish companies with capable management, strong market position and robust financial performance. Sponsor Capital’s operations are based on responsibility, long-term commitment, achieving results and a strong belief in entrepreneurship. Large Finnish institutions are significant y investors in Sponsor Capital’s funds.
Read more:
Sponsor Capital press release: “Tarkkala Group and Konne Group to Merge – Sponsor Capital to Support Future Growth”
STT press release (in Finnish): “Tarkkala-konserni ja Konne Group yhdistyvät – Sponsor Capital mukaan tukemaan jatkokehitystä”
Konne Group press release (in Finnish): “Tarkkala-konserni ja Konne Group yhdistyvät – Sponsor Capital mukaan tukemaan jatkokehitystä”
Tarkkala Group press release (in Finnish): “Tarkkala-konserni ja Konne Group yhdistyvät – Sponsor Capital mukaan tukemaan jatkokehitystä”
