IK spends €140m on home decor

Industri Kapital has made its second investment from its 2004 fund to acquire home decoration company SIA Group in a secondary buyout from 3i.

 
Industri Kapital (IK), the pan-European private equity firm with Nordic roots, has announced its acquisition of home decoration company SIA Group from UK-listed private equity house 3i.
 
IK has invested €49 million ($59 million) of equity in the transaction, which is valued at around €140 million, according to sources close to the deal.
 
SIA Group was founded in Sweden in 1963 by designer Sonja I. Andersson and Kjell Melander. Now headquartered in France, it produces two collections of products a year including artificial plants, vases, table decorations, furniture, lamps, linen and candlesticks.
 

Samples of SIA Group’s summer collection

The company distributes its products in more than 30 countries and employs 450 people. SIA estimates that in 2005 its turnover will be around €130 million.
 
A consortium led by French buyout firm Chequers Capital, then Charterhouse France, acquired the company for F243 million in 1999 in a management buyout from home appliance manufacturer Electrolux.
 
In December 2001 3i committed €29.3 million to a second MBO that allowed the management to increase its stake in the company from 16 percent to almost 40 percent.
 
During the period of IK’s ownership of the company it has made acquisitions in Norway, Denmark and Greece and seen an increase of 50 percent in turnover and profitability according to an IK statement.
 
This is the second investment from the Industri Kapital 2004 fund, which closed last October on €825 million.