With the approval of the Russian authorities, Kiilto has now been able to sell all its Russian subsidiaries. After a transition period, Kiilto brands will no longer be sold in the Russian market.
Kiilto began to look for a legally appropriate way to exit the Russian market in March 2022. In July 2022, Kiilto and Bergauf Group reached an agreement on the acquisition of several construction and industrial adhesive subsidiaries. With the recently concluded transaction, AO Kiilto-Klei, OOO Kiilto Family and OOO Kiilto-Klei Ramenskoe were transferred to Bergauf Group. Bergauf Group is one of Russia’s most prominent construction chemical manufacturers.
In September 2022, Kiilto and O3 Chemicals signed an agreement on the sale of OOO KiiltoClean. O3 Chemicals is an industrial coatings manufacturer that has owned a professional cleaning product and disinfectant plant in Rostov-on-Don since 2020.
With these transactions completed, Kiilto’s entire Russian operations, which encompassed three production plants and approximately 200 employees, have now been transferred to new owners. The transition will be carried out in accordance with the applicable legislation and sanctions and taking into account staff safety.
The goal of selling the Russian subsidiaries was not financial gain, but rather finding a legal way to exit the Russian market, the Company said. In 2021, Kiilto’s Russian operations accounted for about 10% of the company’s turnover. Kiilto’s operations in Belarus ceased in spring 2022 and the liquidation of the company will be finalized during February 2023.
Kiilto is a family-owned group from Finland. Kiilto develops, produces and markets chemical industry solutions in four business areas: construction, industrial adhesives and fireproofing, professional hygiene, and consumer business.