An agreement has been entered into with Lazarus Industriförvaltning AB, which acquires a majority of Eco Log Group AB.
Eco Log Group AB manufactures and sells efficient forest machines for sustainable forestry and is based in Söderhamn. Eco Log has a new majority shareholder. Lazarus is an investment company specialized in operational turn-around of companies facing significant challenges. By combining access to capital with experience of operational turn-around, Lazarus can strengthen Eco Logs' position and offering going forward. Lazarus already owns companies such as Eurosteel Nybro, AH Automation, Stockholm Repair Yard and other manufacturing industrial companies.
The acquisition is conditional by the Swedish Competition Authority’s approval. Weland and Accent remain as minority shareholders of Eco Log Group AB. At the moment, Eco Log Sweden AB is in an ongoing reorganization process.
Eco Log Sweden AB have recently faced liquidity issues. The company chose to apply for financial reorganization to the Hälsingland District Court. The purpose of the reorganization was to create long-term sustainable conditions. The day-to-day operations continued as usual during the reorganization process without affecting customers or deliveries.
Financial reorganization is an instrument to avoid bankruptcy for companies that have payment difficulties but in the long run have good opportunities to survive. During the reorganization, the company is given time to reconstitute and rebuild its finances and operations. This takes place step by step according to a set process specified by the law and includes collaboration with an administrator who is approved by the district court. It is still the regular board and management that represent the company and are responsible for the operations during the reorganization.
Eco Log has approximately 120 employees. The company was hit hard by the Covid pandemic, which led to complications in global supply chains with component shortages as a result. In addition, Russia's invasion of Ukraine has further created disturbance in the global supply chain. The increased material costs and disruptions in supply chains have resulted in a delay of certain deliveries. Since the business is highly capital intensive, the company is particularly affected by delayed deliveries, which has led to a deterioration of the company's liquidity. Source