Haendig is acquiring, through its subsidiary Duri Holding, Lundbergs Produkter. The two companies' complementary range of products and services will greatly strengthen the customer offering.
"Haendig's expressed strategy is to further strengthen its position with companies with strong brands in the DIY sector," says Haendig's CEO Thomas Holmgren. "This acquisition complements our brands portfolio while Lundbergs offers additional resources for further expansion in the Nordic region."
Both Lundbergs and Duri have strong brands within the DIY sector as well as in the professional segment. The plan is to organise the two companies under the newly formed company Duri Holding AB. The new company's CEO will be Staffan Jehander who is currently CEO of Duri Svenska AB.
Staffan Jehander comments: "The retail sector is undergoing substantial restructuring with greater chain concentration and new international players entering the market. Exploiting the resources and competence of both companies will enable us to satisfy the future requirements and preferences of our customers to an even greater extent. We also see opportunities for a number of synergy gains between the companies."
Duri, with annual sales of approximately SEK 100m, has a product range for retailers within the DIY sector comprising floor and wall accessories. The company also carries a range of accessories for flooring professionals.
Lundbergs, with annual sales of approximately SEK 150m, carries a range of interior design products such as arches, panels, radiator covers and boards. In recent years the company has also developed a totally new range of garden products such as fences, wind shelters and trellises. The company's main customers are DIY stores in the Nordic region.
Stig Karlsson, Ratos Senior Investment Manager responsible for the Haendig holding, comments: "Ratos already has a positive view of the Swedish building market. We are therefore convinced that the Lundbergs acquisition is a good deal for all parties."
Haendig is an active owner of companies that operate with strong brands in the DIY sector in the Nordic region. The company's 2004 sales totalled approximately SEK 1,250m (including Markt which was sold at year-end 2004). Today's deal is subject to Competition Authority approval.
For additional information, please contact
Stig Karlsson, Senior Investment Manager Ratos, +46 8 700 17 00
Thomas Holmgren, CEO Haendig, +46 705 736 700
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 8 700 17 00