Swedish manufacturing group HANZA plans to acquire Fortaco’s steel-processing and assembly units in Estonia, Finland and Poland, expanding its European production platform and strengthening its industrial capabilities in Estonia.
The agreement includes Fortaco Group’s plant in Narva, East Estonia, two facilities in Finland and two in Poland. The factories are located in Narva, Kurikka, Sastamala, Wrocław and Janów Lubelski. The combined asset and share acquisition includes Fortaco Estonia OÜ and Linda Properties OÜ, alongside the Finnish operations and two Polish subsidiaries. The transaction remains subject to customary approvals and is expected to close in the fourth quarter of 2026, according to Enterprise Estonia.
Once completed, Fortaco Estonia will join HANZA’s established manufacturing cluster in Estonia. HANZA already operates production units in Narva, Tallinn, Pärnu and Tartu, covering heavy machinery, sheet-metal processing, electronics, machining, cable harnesses and final assembly.
HANZA expands its Estonian manufacturing cluster
The addition will broaden HANZA’s capabilities in heavy machinery, machining, welding, complex assembly and the testing of larger mechanical systems. The companies expect the combination to improve production flexibility and give customers access to a wider set of manufacturing capabilities across Europe. The planned investment also adds to the opportunities in Estonia’s mechanical-engineering sector.
Deal adds scale in heavy machinery and assembly
Across the five acquired units, HANZA expects to add approximately 1,300 employees and around €170 million in annual revenue. The Estonian operation is expected to contribute nearly 400 employees to HANZA’s workforce.
The initial cash payment at closing is based on an enterprise value of €144M, adjusted for net debt and normalised working capital. An earn-out tied to future revenue growth could take the total purchase price to as much as €200M, Tööstusuudised reported. HANZA said the payments would be financed through existing cash and available credit facilities.
The acquired operations are expected initially to contribute an EBITA margin of approximately 9%, excluding transaction and integration costs, and to have a positive effect on HANZA’s earnings per share from closing. Their customers operate across defence, mining, agriculture, material handling and off-road vehicles.
Narva remains central to the transaction
The transaction supports HANZA’s 2028 strategy and allows Fortaco to focus more closely on designing and manufacturing vehicle cabins for off-highway vehicle manufacturers. HANZA Group CEO Erik Stenfors said the company was seeking stronger capabilities rather than scale alone, pointing to long-term demand for heavy machinery and complex assembly, as well as customers’ need for regional production and reliable supply chains.
Fortaco is a European partner for off-highway vehicle manufacturers, specialising in vehicle-cabin design and production. The group has approximately 2,300 employees and annual revenue of about €350 million. HANZA, headquartered in Sweden and listed on Nasdaq Stockholm, has approximately 5,000 employees and annual revenue of about SEK 10 billion.
HANZA’s production model combines electronics, sheet-metal processing, heavy machinery, cable harnesses, machining and final assembly. Its existing Estonian footprint gives the group a base for serving industrial customers that need regional production, complex assembly and shorter supply chains.
Fortaco Estonia managing director Larissa Šabunova said the companies would combine their expertise and resources to develop a stronger industrial platform in Narva and Estonia. Both companies will continue operating normally until the transaction receives the necessary approvals.
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