Hellenic Saltworks and the path to growth
By investing in its own asset, Growthfund emphasizes its new role as the National Investment Fund of the country, looking forward to attracting a strategic investor for Hellenic Saltworks S.A.
Growthfund has announced the acquisition of a 24.81% share in Hellenic Saltworks S.A., previously owned by the Industrial and Commercial Company Kalas S.A. This represents 1,087,063 registered common shares, acquired for a total of 3,000,000 euros. Through this recent purchase, Growthfund’s stake in Hellenic Saltworks S.A. now stands at 80%, fortifying its strategic investment in a company that has been in the Growthfund Group since 2018. The remaining 20% is held by local Municipalities. Since its integration, Hellenic Saltworks S.A. has experienced a significant revenue increase. In 2022, the company achieved record sales, pre- and post-tax profits, namely €9.06 million, €1,77 million and €1,18 million respectively and is ready to adopt a new development plan.
Following a comprehensive analysis, Growthfund recognizes the potential growth trajectory for the company. This optimism stems from targeted investments in the production line, designed to bolster production capacities and position the company favorably for overseas ventures. Through its proactive investment approach, Growthfund is not only emphasizing its role as the leading National Investment Fund; it is also focused on enhancing the value proposition of Hellenic Saltworks S.A., seeking in the subsequent phase to draw significant private investments with a developmental focus.
Through this recent move, we anticipate a return on value not only for Growthfund itself but also for the Greek State and for the local communities where Hellenic Saltworks S.A operates. This targeted investment planning includes the creation of new job opportunities and the company’s advancement through an ESG initiative, promising widespread benefits for the society. Furthermore, Growthfund’s investment provides a unique opportunity to expand using renowned, superior-quality, and export-focused Greek products.
Gregory D. Dimitriadis, CEO of Growthfund, stressed, “Purchasing 24.81% of Hellenic Saltworks S.A. shares aligns perfectly with our broader strategy as the National Investment Fund. Following years of consecutive growth for Hellenic Saltworks, a Growthfund subsidiary, it is high time we introduced a pivotal plan for the development of the company. Our aim is to amplify the nominal value, the productivity, and overall growth potential of the company, aiming to engage a strategic investor in the phases to follow. This investment mirrors the business-transformation approach we have adopted towards our subsidiaries, maximizing the benefits for the Greek State, the national economy, and the Greek society at large; in this instance, this model contributes significantly to local and regional growth. Our commitment to channel over €50 million into the Greek economy by 2024 is consistently taking shape through coordinated efforts with a focus on tangible outcomes.”
From his end, Antonis Doumanoglou, CEO of Hellenic Saltworks S.A., stated, “Growthfund’s management has been by our side at every step, supporting not just our growth, but also steering us towards a sustainable business model. This investment not only marks a significant milestone but also opens up new horizons for our company. Currently, we cater to over 50% of the market. Our goal is to increase both our production and product quality by leveraging adjacent cultivable land. Through this approach, we anticipate a significant boost in productive capacity, delivering tangible benefits to the local economy.”
