FISKARS ACQUIRES IITTALA GROUP
FISKARS ACQUIRES IITTALA GROUP
The acquisition results in a strong European house of branded goods and design
Press conference at 10.00 a.m. on June 29, 2007 at Design Forum Finland
(Erottajankatu 7, Helsinki).
Fiskars Corporation has signed an agreement to acquire the homeware design
company Iittala Group Plc from the private equity company ABN AMRO Capital, the
company's management and other private shareholders.
The debt-free price for Iittala, which will be finally determined at closing
estimated to take place at the end of August, will be approximately EUR 230
The enterprise value corresponds to a price per share which is in the middle of
the pricing range of the withdrawn IPO earlier this year. The top management of
Iittala will retain a holding of about three percent in Iittala. Fiskars has the
right to purchase the shares later. The closing of the transaction is subject to
approval by the competition authorities.
The net sales of Iittala Group in 2006 were approximately EUR 190 million, and
EUR 490 million for Fiskars consumer products operations, Fiskars Brands. The
Housewares division represented 9% of the net sales for Fiskars Brands. The
operating profit of the Iittala Group in 2006 amounted to approximately EUR 17
million and the profitability of the Housewares division of Fiskars Brands was
Iittala Group will form a new European operation within Fiskars Corporation
alongside Fiskars Brands. The aim is to pursue synergies by consolidating
certain parts of the Housewares division of Fiskars Brands into Iittala Group
where the market areas are shared. Synergy effects will follow in the next two
to three years and are thereafter expected to reach EUR 5 million annually.
Fiskars expects that the acquisition will have a positive effect on the earnings
per share during 2008. Fiskars Brands consumer products operations will in the
future mainly consist of the three divisions: Garden, Craft, and Outdoor
Tero Vähäkylä will continue as the CEO of the Iittala Group, and Fiskars
Corporation President and CEO Heikki Allonen will become the chairman the
Iittala Board of Directors. Iittala Group will continue to employ its existing
The transaction will even out the seasonal fluctuation of sales and profits for
Fiskars Corporation, as spring is the important garden season for Fiskars
Brands, crafts products mostly sell in early to mid summer, while sales and
profits for the Iittala Group tend to concentrate towards the end of the year.
The acquisition of Iittala Group will strengthen Fiskars and make it a leading
housewares company especially in the Nordic region. Through the transaction,
Fiskars will increase its brand portfolio by some of the most prestigious brands
in Finland, Sweden and Norway; including Iittala, Arabia, Hackman, Rörstrand,
Höganäs Keramik, BodaNova and Høyang-Polaris. This selection will be added to by
Raadvad, the Danish brand of Fiskars. Fiskars will also expand its knowledge of
retail and widen its distribution in the Nordic countries through the Iittala
Group's wide network of stores.
‘The acquisition of Iittala Group is a logical step in our strategy, which looks
for growth in areas that suit us and our brand portfolio naturally. The
transaction strengthens our position as a corporation with deep European roots
specializing in design and branded goods. Iittala Group is an interesting and
growing company with products and know-how that complement our own. Fiskars and
the Iittala Group have surprisingly few overlapping operations. Instead, we will
have synergy effects in, for instance, sales, distribution, and the purchase of
supplies – all areas where we see a lot of opportunities for cooperation,' says
Heikki Allonen, Fiskars Corporation President and CEO.
‘The transaction is positive and very suitable for the Iittala Group. Like
Iittala, Fiskars has a long tradition of Finnish design, as well as brand
management skills and is a truly international company. Furthermore the
company's strong balance sheet makes it possible to develop the operations. I am
convinced that Fiskars' wide distribution, sales and supply chain network will
give us a stronger base to continue our internationalization strategy,'
comments Tero Vähäkylä, CEO of the Iittala Group.
Advium Corporate Finance, eQBank Ltd. acted as financial advisor to Fiskars in
CEO and President
For more information:
Fiskars Corporation President and CEO: Heikki Allonen,
phone +358-400-42 1234
Iittala Group Plc CEO: Tero Vähäkylä,
phone +358-40-730 2426
Pictures are available at http://materialbank.iittala.com
Founded in 1649, Fiskars is an international corporation which includes the
subsidiaries Fiskars Brands, Inha Works, and the Real Estate Group. Fiskars
holdings in associated company Wärtsilä is also an important part of Fiskars
Corporation. In 2006, the net sales of Fiskars Corporation was EUR 535 million,
its operating profit EUR 86 million. The Corporation employed some 3,000 people
around the world. Globally, the Corporation's best known products are its
orange-handled scissors and its garden tools.
Iittala Group is a leading homeware design company, and offers a wide range of
products representing the best in modern Scandinavian design. The Group operates
through brands such as Iittala, its leading brand; Arabia; Hackman; BodaNova;
Höganäs Keramik; Rörstrand and Høyang-Polaris. In 2006, Iittala Group had a
turnover of EUR 190 million, and employed 1,353 people as of the end of the