By attracting almost 5 million euros in co-financing from Citadele Bank, Ape Motors, one of the leading wholesalers of car spare parts and accessories in Latvia, has reorganized the company by buying shares of the company previously owned by Swedish partners from local minority shareholders.
Funding from Citadele Bank in the amount of EUR 4,950,000 has been used to purchase the company’s shares by changing the company’s members, as well as a credit line for short-term current assets.
“The reorganization of the company will help to facilitate the mobility of the organization and respond to unforeseen market changes that affect Ape Motors in a shorter reporting period. The fact that the majority shareholders are more easily accessible will definitely help to make decisions more quickly, ”reveals Andris Apalups, Chairman of the Board of Ape Motors. “The near future is related to investment plans in infrastructure – we plan to expand and move to new, larger premises, as the existing ones have become narrow.”
Ape Motors owns 69.9% of shares in SIA SPV Ab, whose owners are Andris Apalups, Andris Ķikulis and Pauls Zuicēns. 20.04% – Atoy Automotive Sweden, as well as 10% for an individual Indulis Ķimenis.
“Acquisitions or mergers are not one of the most typical goals of financing requests, but our experience shows that successful management of the process can serve as a good precondition for successful cooperation in the future. In the case of Ape Motors, it is gratifying that local shareholders are buying partners from Sweden out of control of the company, which is a pleasant contrast to the dynamics we often see in business in Latvia, ”says Vaidas Žagūnis, Citadele’s Head of Corporate Client Management in the Baltics.
“The car market has changed significantly over the past year – leasing data show that the demand for both economical little-used cars and electric cars has grown, but manufacturers are struggling with the challenges posed by global logistics problems. In such an environment, it is important to be flexible, and after the restart of the company, Ape Motors will be able to continue to strengthen its position not only in the Latvian market, but also in the European market. ”
Ape Motors is a Latvian-Swedish joint venture founded in 1995 and is one of the largest importers of auto spare parts in Latvia, cooperating with 110 suppliers in Europe and the world and distributing 130 different brands of auto parts to car repair shops, car centers and workshops in Latvia and Europe.
“This year there is a lot of activity in the independent after market, because new cars are no longer as available as before the pandemic, and the pandemic has led many to reconsider their priorities, leading people to choose or be forced to continue with their existing cars and repair them. . Also, during the pandemic, residents postponed repairs that were not critical, and this can sometimes mean that the next repair will come complete with the purchase of new tires or other necessary parts and will be more expensive, ”explains A.Apalups.
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