Fiskars acquires Royal Copenhagen, creating a consolidated portfolio of leading Scandinavian design brands
Fiskars Corp. Stock Exchange Release December 12, 2012 at 10:00 EET
Fiskars is accelerating the international expansion of its Home business by acquiring the renowned Danish premium porcelain company, Royal Copenhagen. The acquisition enables Fiskars to consolidate a unique portfolio of leading Scandinavian dining brands, as Royal Copenhagen’s strong heritage in hand-painted dinner service ranges complements Fiskars’ highly respected brands, Iittala, Rörstrand and Arabia. In addition to boosting Fiskars within the Nordic countries, the acquisition will further strengthen Fiskars’ position in Asia, where Royal Copenhagen ranks among the leading brands selling premium dining products.
Fiskars has today signed a definitive agreement to acquire 100 % of the shares in Royal Copenhagen A/S and Royal Scandinavian Modern KK Japan from Royal Scandinavia A/S, whose controlling parent company is the Danish private equity group, Axcel. The total consideration payable (debt-free enterprise value) for the shares is DKK 490 million, equaling approximately EUR 66 million, less net debt and working capital adjustments as per closing of the transaction. The transaction will be financed using Fiskars’ existing credit programs and the transaction is expected to be completed in Q1 2013.
Upon completion of the transaction, Royal Copenhagen will become a part of Fiskars’ Home business area. In 2011, Royal Copenhagen’s reported net sales were DKK 492.3 million (EUR 66 million), its EBIT were DKK 38.7 million (EUR 5 million) and its balance sheet total was DKK 409.4 million (EUR 55 million). The acquisition is expected to have a positive effect on Fiskars Group’s EBIT from 2013 onwards.
“I am proud to welcome Royal Copenhagen to our portfolio of esteemed brands, renowned for their quality, design, longevity and rich heritages. Fiskars’ ambition in the Home business is to become a globally leading consumer goods company in Scandinavian design, and we are excited to bring together a unique dining offering consisting of Royal Copenhagen’s Danish hand-painted dining, Rörstrand’s elegant Swedish dining, Arabia’s Finnish homey dining, and Iittala’s contemporary design. Along with its world-class craftsmanship, Royal Copenhagen brings to Fiskars 30 years of valuable experience of operating in Asia, which will support our growth strategy outside the Nordic markets,” said Kari Kauniskangas, President and CEO of Fiskars.
“I look forward to building a successful future for Royal Copenhagen as a part of a strong family of highly regarded brands. In Fiskars, we will get an international and financially strong owner with its own deep roots in the Nordic design tradition – and respect for unique design traditions that are more than 360 years old. In other words, we will get an owner with both the experience and the capital to continue the very healthy development process and international expansion that Royal Copenhagen has already started”, says Mads Ryder, CEO of Royal Copenhagen.
Scandinavian brand leader in hand-painted porcelain
Royal Copenhagen was founded in 1775 by the Danish Royal Family when the first porcelain dinner service was created. Since then, Royal Copenhagen has manufactured products that combine respect for tradition, innovation and world-class design and have been internationally renowned for their superior craftsmanship. Among Royal Copenhagen’s most famous and most exclusive dinner service ranges are Flora Danica, the best-selling, mussel-decorated Mega range and the colorful new Elements range.
In recent years, Royal Copenhagen has successfully implemented a turnaround strategy, reorganizing its product range and focusing on expanding its classical sets while developing new sets that appeal to a broader consumer base. The company has also introduced a number of improvements in its supply chain management, including establishing a manufacturing unit in Thailand.
Today, Royal Copenhagen is the Scandinavian brand leader in hand-painted porcelain and ranks among the leading brands in Japan. The company is headquartered in Glostrup, Denmark and employs a total of 650 people located in Denmark, Japan, Thailand, and elsewhere. There are 12 Royal Copenhagen stores in Denmark, Japan and Korea, as well as outlets and 117 shops-in-shops in Denmark, Japan, Korea, Taiwan, Germany and USA. The company has production facilities in Denmark and Thailand.
President and CEO
President and CEO Kari Kauniskangas, Fiskars, tel. +358 204 39 5500
Teemu Kangas-Kärki, President, Fiskars Home, tel. +358 204 39 5703
CEO Mads Ryder, Royal Copenhagen, tel. + 45 38 14 91 92
An analyst and press conference will be held on Wednesday, December 12, at 14:00 at Fiskars Campus, Hämeentie 135 A. Presentation material and press images will be available at www.fiskarsgroup.com.
Fiskars is a leading global supplier of consumer products for the home, garden and outdoors. The group has a strong portfolio of respected international brands, including Fiskars, Iittala and Gerber. Founded in 1649 and listed on NASDAQ OMX Helsinki, Fiskars is Finland's oldest company. Fiskars recorded net sales of EUR 743 million in 2011, and employs some 3,400 people in over 20 countries. www.fiskarsgroup.com