Vendis inks first Nordic deal with Ferm Living MBO

Ferm Living's enterprise value was not disclosed but Vendis typically backs companies with an EV in the €20-80m range.

Two months ago, Vendis was approached about Ferm Living by Deloitte's corporate finance arm in Denmark. The GP then entered an auction process for the asset, which saw competing bids from other private equity funds.

Vendis's specialisation in consumer brands was key to the GP sourcing and landing the deal, partner Michiel Deturck told unquote": "This being a Danish company, there is no reason intermediaries would get in touch with a generalist French or Belgian fund. But our sector focus makes us very visible."

The process was prompted by Ferm Living CEO Trine Andersen, a graphic designer who founded the company in 2006. Having expanded operations across the Nordic countries and Benelux, Germany and France, the executive was keen on accelerating the European roll-out, which required a strategic partner.

Under Vendis's ownership, Ferm Living will look to reinforce its foothold across key European markets. The plan is to export its existing distribution model in Scandinavia to other countries where customer awareness is more limited. According to Deturck, the strategy will predominantly feature organic growth, with no bolt-on acquisitions in sight for the time being.

The deal represents Vendis's first foray in the Nordic region and the second deal to be financed via its second fund. Having held a €125m first close in February 2015, Vendis Capital II has already broken its €150m target and could hit its €180m hard-cap by Q3 2016, the GP told unquote".

The vehicle, which backs consumer brands with €5-25m equity cheques, was used for its maiden deal when Vendis bought Dutch fashion brand Petrol Industries alongside the management team in mid-January.

Debt
The deal is understood to have been leveraged.

Company
Founded in 2006, Ferm Living started by designing wallpapers but has since grown into a designer accessories and furniture brand.

Headquartered in Copenhagen, the company sells its products across Denmark and other European markets via a network of design stores and Ferm Living's sales representatives.

Employing 25 people, the design brand generates revenues above the DKK 100m mark and is understood to be profitable.

People
Vendis Capital – Michiel Deturck (partner).
Ferm Living – Trine Andersen (founder, CEO).

Advisers
Equity – Quartz (Commercial due diligence); Kromann Reumert (Legal).
Company – Deloitte (Corporate finance).

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• Topics
• Buyouts
• Consumer
• Nordics
• Denmark
• Vendis Capital