Ratos is to acquire 100% of office chair manufacturers RH Form and RBM. The two companies are estimated to have combined sales in excess of SEK 600 million in 2006. Ratos's investment amounts to almost SEK 190 million.
RH Form, which was established in 1975, is today one of Sweden's leading producers of office chairs. The company, with its head office in Nässjö, Sweden, has some 120 employees and 2006 sales are expected to reach SEK 340m. Operating profit (EBITA) is expected to reach SEK 50m. The Danish company RBM, with its head office in Fjerritslev on Jutland, has 150 employees and is expected to report sales of SEK 280m and an operating profit (EBITA) of approximately SEK 21m in the 2006/07 financial year.
"We have come to know Ratos during last fall and are looking forward to our future cooperation, says Peter Eklund and Birger T. Larsen, CEO of RH Form and RBM respectively."
RH Form produces different types of ergonomic office and work chairs and also offers a range of special chairs. In addition to office chairs, RBM's product range includes chairs for conferences, education and canteens. Both RH Form and RBM design and produce their chairs. Most of the companies' purchases relate to components while the company's factories assemble and to some extent sew covers for the chairs.
Ratos CEO Arne Karlsson: "Both RH Form and RBM offer ergonomic, high-quality seating products and we see good opportunities for further growth within this industry with these companies. We are pleased that Ratos has the opportunity to take over as owner of these previously family owned entrepreneurial companies. Both companies already have interesting market positions in Europe and there are opportunities for growth both geographically and through an extended product range."
The two companies' home markets account for almost 40% of total sales. Other key markets are the other Nordic countries, the UK and the Netherlands. The European office furniture market has annual sales of approximately SEK 60 billion, of which chairs are estimated to account for approximately one-third.
Management in both companies will remain in their present positions and intend to coinvest with Ratos. The transfers are subject to approval from the appropriate authorities.
For further information, please contact:
Arne Karlsson, CEO Ratos, +46 8 700 17 00
Anna-Karin Celsing, Head of Corporate Communications Ratos, +46 703 99 62 39
Peter Eklund, CEO RH Form, +46 70 28 655 50
Birger T. Larsen, CEO RBM, +45 40 64 21 01