Innova partially exits Profim to Triton-backed Flokk

Nicole Tovstiga
01 March 2018

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Innova Capital has partially sold Polish seating manufacturer Profim to Oslo-headquartered Flokk Group, backed by Triton, through a stock swap.

The transaction comes less than a year after Innova bought a controlling 75% stake in Profim in May 2017.

Following the deal, Triton will remain the majority owner of Flokk, while Innova and Profim's founders will become the largest minority shareholder in the company.

Flokk, a northern European manufacturer of office furniture, was acquired by Triton Fund IV in October 2014.

With complementary product portfolios, the merger of Profim and Flokk is expected to increase growth and enable larger projects as an office furniture distributor.

Previous funding
Innova acquired a 75% stake in Profim in May 2017. Following the deal, the company's founders, including its CEO Ryszard Rychlik, retained a minority stake in the business. The GP said it aimed to support the company's presence in the Polish and German markets, as well as across western Europe.

Triton first backed Flokk, then known as Scandinavian Business Seating (SB Seating), from previous backers Ratos in a deal that valued the company at NOK 1.925bn. It acquired the company in October 2014 via its Triton IV fund.

Since the acquisition, Flokk acquired Benelux-based swivel chair producer BMA Ergonomics in 2015, which was followed by the acquisition of Swedish ergonomic chair manufacturer Malmstolen in 2016. Flokk acquired Offecct, a Swedish producer of lounge and soft seating furniture, last year.

The rebranding of the company to Flokk was completed in 2017.

Company
Established in 1991 and headquartered in Turek, Profim produces office seating and exports 70% of its production across western Europe. Profim posted a turnover of €100m in 2017, with 70% originating from international sales. This is a decrease from the €109m in revenues it achieved in 2016, according to Unquote Data.

The company markets around 120,000 products a month. Its sales network supports 1,100 dealers in 30 countries. It employs a staff of 1,900.

People
Innova Capital – Andrzej Bartos (senior partner).
Triton – Thomas Hofvenstam (investment adviser).
Flokk Group – Lars I Røiri (CEO).
Profim – Piotr Chelminski (CEO).