Since March Kiilto has been working actively to implement its intention to transfer the subsidiaries in Russia to new investors. In July Kiilto and Bergauf Group reached an agreement. Bergauf Group, one of the largest Russian manufacturers of construction chemicals, shall acquire Kiilto Group's Russian operations. The legal entities to be acquired are AO Kiilto-Klei, OOO Kiilto Family and OOO Kiilto-Klei Ramenskoe.
The agreement on the sale of KiiltoClean Group's Russian operations was signed in September with O3 Chemicals. The legal entity to be acquired is OOO KiiltoClean. O3 is a manufacturer of industrial coatings. Since 2020, they have had a factory producing professional cleaning and disinfectants in the Rostov region.
The divestments are subject to approvals from relevant Russian authorities, that are expected to be received within coming months. Once the divestments will be completed and the transition period will be over, Kiilto will not continue any operations nor will Kiilto brand be used in Russia.
The divestments are executed complying with applicable sanctions and legislation, and assuring the safety of our personnel. The process is not driven by financial motives, but it is a legal way to withdraw from the Russian market. Our operations in Belarus have ended in the spring 2022.