Sangalli Group has announced that it has signed a strategic transaction with Glasswall Group. The two companies will combine resources to strengthen the financial position of Sangalli Group, expand its presence in the European market and invest into the development and production of value added glass products.
Sangalli Group has announced that it has signed a strategic transaction with Glasswall Group securing equity investments into the company and ongoing financial support. Under the signed agreements, the parties will combine resources to strengthen the financial position of Sangalli Group, expand its presence in the European market and invest into the development and production of value added glass products.
The company intends to use the proceeds from the transaction over the next two years to complete comprehensive financial and business restructuring commenced earlier this year and aimed at creating a solid financial and competitive operating basis for Sangalli Group to withstand any potential market downturns in the medium term.
Besides providing financial support, Glasswall Group is bringing its expertise in marketing and distribution of glass products, which will solidify the success achieved recently by Sangalli Group in gaining domestic market share and will contribute to expanding presence in neighbouring strategic markets.
In the longer term, the primary goal of the partnership is company transformation focused on the development and implementation of the advanced technologies in glass coating and processing.
Giorgio Sangalli commented: “Over the last decade, Sangalli Group has been building up production capacity and sophistication together with our market share. Partnership with Glasswall Group strengthens and consolidates our current financial and operational position and creates a solid basis for our future growth. It will be a pleasure to work together to take the company to the next level of its development and achieve our jointly set goals.”
“Expansion into the European market,” said Dmitry Sulin, “has recently been the major strategic objective for Glasswall Group. After a comprehensive exploration of the market, we were impressed by the operational excellence of Sangalli Group and encouraged by the matching strategic vision. Sangalli Group is the most modern float glass asset in Europe and represents an ideal hub for implementation of advanced glass technologies in terms of the quality of its production and convenient logistics. We are now starting to work on creating a strong team for and investment programme into the coating business and strengthening sales and marketing force for Sangalli Group.”
The history of Sangalli Group dates back to glass trading since 1896. Since the 1950s, Giorgio Sangalli has led upstream integration of the group into glass processing by setting up insulated glass unit, tempering and lamination facilities in Susegana, Vittorio Veneto, Modena, Perugia and San Vito al Tagliamento.
In the last decade, the Group has made a leap into the float glass production and firmed up its position as the second largest independent float glass producer in Europe. In 2002, the group opened its first float glass line in Manfredonia and in 2011 doubled its production capacity by launching a highly automated float glass line in Porto Nogaro. The group keeps an active R&D stance resulting in the leading positions in satinated and laminated products, as well as various environmental awards, with total investments exceeding EUR 270 million.
In 2012, Sangalli Group produced over 300,000 tones of float glass and consolidated over 35% domestic market share. Group earned over EUR 100 million of revenues in 2012 and employs over 370 people in Italy.
Glasswall Group consolidates several leading businesses in float glass production, distribution, processing and logistics in Russia and CIS. The Group was founded in early 90s by Dmitry Sulin as glass processing business (STiS), which within a decade has grown into the largest glass processor in Europe. Currently, STiS operates 35 processing and two tempering lines, processes over 120,000 tons of glass and employs over 1,600 people.
Focused on upstream integration, Glasswall acquired a strategic stake in Pilkington float line near Moscow in 2009 and initiated integration of two businesses. In 2012, joint venture with major financial investors (EBRD and Rusnano) was formed to fund further business development.
Since 2010, Glasswall has actively invested in several businesses in the glass and construction materials sector. Combined revenue of businesses where Glasswall maintains strategic interest exceeds EUR 300 million.