Converting a local underinvested company into a regional champion with a state-of-the-art asset base

Company	Velvet CARE
PE/VC investor	Abris Capital Partners
Investment period	2018-2024

2.5

Sales growth

5

EBITDA growth

5

Export growth

Headquartered in Klucze, Poland, Velvet CARE manufactures paper hygiene products including tissues, toilet paper and kitchen towels, and owns the highly regarded Velvet brand.

The company's history dates back to 1897 and includes 17 years under the ownership of International Paper and Kimberly Clark.

Abris acquired a majority stake in Velvet CARE in 2018 from a private equity fund, Avallon, and partnered with the company’s management to drive organic growth, while seeking to acquire other attractive tissue businesses in the region. Under the new ownership Velvet CARE completed a major capex program that included two modern tissue paper machines, which substantially increased the production capacity. A number of subsequent investments in converting, automation and warehousing followed. In 2018 Velvet CARE acquired a sizeable Czech competitor, Moracell.

During Abris’s investment, Velvet CARE grew sales by 2.5x, EBITDA more than 5x and its export business 5x, significantly exceeding the original investment targets in terms of financial results and strategic development. The company was sold to Partners Group, a Swiss large-cap PE fund, in 2024.

Main objectives
of funding

More than EUR 130m was spent on improving competitive positioning across all product categories by, inter alia, launching new tissue machines (18-month project, EUR +100m cost, +120 kt tissue processing) and increasing the number of converting lines from 12 to 19 (+7 new lines incl. 1 acquired in Czechia, +70 kt converting capacity).

What changed in the company after PE/VC investment

Underwent an extraordinary business transformation driven by significant growth of production capacity and business scale, expansion into neighboring markets and a dual-offering strategy (i.e. combining brand leadership and extensive private label competences).
Invested in vertical integration (i.e. new tissue machines), which pivoted the business profile, materially improved profitability (c. +10 p.p. in EBITDA margin), boosted product quality and increased the automation of production processes. As proved during commercial due diligence at exit, Velvet became a top quartile European manufacturer in terms of production efficiency.
Acquired Moracell, which consolidated the company’s presence in the CEE market (export grew 5x over five years), strengthened its position as a regional leader (Velvet became the #1 brand in consumer tissue paper in Czechia) and expanded its international footprint, with limited client overlap.

ESG related initiatives and accomplishments

Became a unique ESG player in CEE

Became a unique ESG player in CEE, gaining the prestigious B-Corp certification (as the first ever company in the industry), receiving a gold medal from EcoVadis and beating competitors in ESG benchmarking analyses performed during the exit process.

Launched and performed numerous ESG projects

 Launched and performed numerous ESG projects, including advanced carbon neutrality, a major reduction of water consumption, waste and emissions, increased use of sustainable materials, top-level H&S standards, ESG KPIs for each level of the organization and the “Piątka dla Natury” educational programme.

Introduced ESG targets

Introduced ESG targets in its long-term strategy, “Eco Agenda”, with relevant governance, KPIs and processes.

Our close working relationship with Abris has allowed us to significantly strengthen our market position, not least through M&As, and grow far beyond our initial plans.

Artur Pielak

CEO of Velvet CARE