Kebony, the sustainable alternative to tropical hardwood, announces today that it has raised 177.5 million NOK (€19.05 million) to fund a second European factory. Finance has been secured via the issue of 140 million NOK of new shares and a subordinated loan of 37.5 million NOK. PMV and Investinor lead the new investment round, which was open to both new and existing investors.
Following many years of strong growth, the demand for Kebony is about to exceed current production capacity at its facility in Vold, Norway. The proceeds of the raised capital will primarily be used to build a second factory in Belgium, scheduled to be operational by 2017.
Kebony is the sustainable alternative to tropical hardwood and preservative treated timber. Developed in Norway, the Kebony technology is an environmentally friendly, patented process, which enhances the properties of sustainable softwood with a bio-based liquid. The process permanently modifies the wood cell walls giving Kebony premium, hardwood characteristics. Recognized as a Technology Pioneer by the World Economic Forum and four times listed as in the Global Cleantech 100, Kebony has been embraced by leading international architects and developers.
Christian Jebsen, CEO of Kebony, commented: “Kebony has seen sales increase by an average of 35% over the last seven years internationally. Securing new investment enables Kebony to increase capacity and accelerate growth in line with demand and open new market opportunities.”
Thomas Hoegh, Chairman of the Board, added: “This investment round represents a milestone for the company. Our first facility on the European mainland is designed as license factories in the future will operate to enable efficient export of our technology. We leverage the Kebony brand and technology and thus create value for our distribution and license partners. The Flanders region of Belgium seems to be the perfect place to build our first growth hub.”
Roald Borré, Co-Head of Venture Capital, PMV nv (Belgium investor) added: “The opportunity to support Kebony’s ambitious future growth plans is compelling. With our track record of investing in the development of businesses that support sustainable economic and social initiatives, Kebony is a perfect fit for our investment strategy and we are thrilled to be involved in this exciting company.”
ABG Sundal Collier and Opus Corporate Finance have advised Kebony in the financing process.