Estonian wood industry company Palmako, part of Lemeks Grupp, is expanding into Lithuania with the acquisition of Jūrės Medis, one of the largest manufacturers of glulam structures in the Baltics. The transaction is part of Palmako’s long-term growth strategy, which includes increasing the share of higher value-added wood products and expanding its international operations.
Jūrės Medis, which has increased its revenue in recent years, will strengthen Palmako’s capabilities in terms of both expertise and production capacity, while also improving the company’s competitiveness.
Rain Raudsepp, Member of the Management Board of Palmako, said: “Each year, timber is being used to build increasingly complex structures and buildings, and Palmako is developing along with this trend. The acquisition of Jūrės Medis will help us grow through new products, skills and engineering expertise. In turn, we can give Jūrės Medis better access to international markets. Given the challenging market conditions, joining forces gives us a stronger competitive position in European and Scandinavian markets.”
In practical terms, the transaction will allow Palmako to expand its existing product range with larger and more technically demanding timber structures and to take on projects where engineering expertise is just as important as production capacity. Structures manufactured by Jūrės Medis can already be seen in Estonia, for example at the Tabasalu Tennis Centre and the Hiiumaa Sports Centre.
According to Raudsepp, the investment is particularly significant at a time when the European timber and construction markets have faced challenging conditions in recent years. “We cannot wait for ideal market conditions. To remain competitive, we need to operate efficiently in the current environment while continuing to increase the level of wood processing and the share of higher value-added products,” Raudsepp said.
Founded in 1974, Jūrės Medis is one of the largest manufacturers of glulam structures in the Baltics and employs approximately 85 people.
“We have built up our expertise and production experience over several decades. Palmako adds international sales experience and a broad customer network, which will help us reach new projects and markets. It is important to us that the new owner comes from the same industry, understands our business and sees value in the expertise that already exists within Jūrės Medis,” said Raimondas Griškus, CEO of Jūrės Medis.
The day-to-day operations of both companies and cooperation with existing customers and partners will continue as usual. The integration of production, sales and engineering capabilities will take place gradually.
The transaction between the two companies was completed in Lithuania on 30 September. The transaction was advised by law firm WALLESS, law firm Constat and Eventus Group.
Palmako AS
Founded in 1997, Palmako AS is an Estonian wood industry company and part of Lemeks Grupp. The company operates four production units in Estonia, located in Kavastu, Laekvere, Põltsamaa and Ojaküla. Palmako employs approximately 400 people and recorded sales revenue of EUR 76 million in 2025. The company exports 90% of its production, with Palmako products sold in more than 40 countries.
Jūrės Medis
Founded in 1974, Jūrės Medis is a manufacturer of glulam structures based in the Kazlų Rūda region of Lithuania. The company specialises in project-based load-bearing glulam structures. Jūrės Medis recorded sales revenue of EUR 11.8 million in 2025 and employs approximately 85 people. Around 80% of its production is exported.
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