Partners to back Velvet Care with international expansion among plans

Velvet Care is a European paper-based hygiene product manufacturer.

  • Velvet Care is headquartered in Klucze, Poland
  • Abris acquired a majority stake in Velvet Care in 2018
  • Partners Group is a global private markets firm

Partners Group has agreed to acquire Velvet Care, a European paper-based hygiene product manufacturer, from Abris Capital Partners.

Velvet Care is headquartered in Klucze, Poland. It manufactures toilet paper, paper towels, paper tissues and moist toilet paper in Central and Eastern Europe. The company, with 850 employees, generated €277 million in revenues in 2022.

Partners Group will work with the company’s management to build on its market position and drive growth, according to a release. Key value creation initiatives will include expanding international reach, broadening the product portfolio with a focus on high-growth categories and making targeted acquisitions, the release said.

“Velvet Care’s extensive offering of staple products give the company resilience and cash flow stability during macroeconomic slowdowns,” said Milorad Andelic, member of management, private equity goods & products industry vertical, Partners Group. “At the same time, Velvet Care’s markets have strong, long-term tailwinds, with rising incomes driving demand for both premium and value products. Our value creation plan will focus on strengthening the company’s existing position while continuing to expand into other major European markets.”

The transaction is subject to customary regulatory approvals.

Abris acquired a majority stake in Velvet Care in 2018 from Polish private equity fund Avallon. The company grew sales by 2.5 times and EBITDA by over five times, and expanded its export business fivefold, exceeding the original investment case in terms of financial results and strategic development under Abris’ ownership, the release said. It acquired Moracell in 2020.

Partners Group is a global private markets firm with $142 billion in assets under management as of 30 June. It has regional headquarters in Baar-Zug, Switzerland.

Abris is an ESG transformation private equity fund manager focused on mid-market opportunities in Central Europe. It is based in Warsaw, Poland.

Another deal that falls in the personal hygiene sector is Cornerstone Investment Management and Kartesia’s investment in Ecowipes, a biodegradable wet wipes and other personal hygiene product provider.