IDEmøbler (IDdesign A/S) (Denmark) - Dec 2007

unquote
01 December 2007

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Axcel has acquired 60% of IDEmøbler, a Danish home furnishing chain, and IDdesign, an international chain of franchise home furnishing stores, for an undisclosed sum. The deal was sourced through a proprietary process by Axcel. Former shop owners will retain the remaining 40% of the ownership. The deal will comprise 32 of IDEmøbler’s 39 stores in Denmark. The remaining seven stores in Denmark, Faroe Island, Greenland and Iceland and IDdesign’s 15 stores abroad will have a close relationship with the chain throughout the partnerships agreement. The financial terms have not been disclosed. The GP was attracted to the deal because of the group’s constant growth in recent years, the furnishing industry’s growth and the strength in the company’s brand. The buyout builds a foundation for further development of an integrated chain both in Denmark and the rest of Scandinavia. The incorporated business will reap benefits by realising synergies and increase product range, sourcing and logistics. The acquisition will also provide opportunities for staff to make internal moves. The GP will continue to grow the chain through add-ons and organic growth. The newco will be IDdesign AS. Debt structure FIH supplied the debt to support the transaction.

Company

Founded in 1969, IDEmøbler is a Danish home furnishing chain selling furniture, design products, lighting and accessories. It includes 39 home furnishing stores in Denmark and a store in each of the Faroe Islands, Greenland and Iceland. There are also 15 franchise stores operating under the name IDdesign in a number of countries. IDEmøbler and IDdesign are managed by Inbohome Amba. The combined turnover in 2007 is expected to be around DKK 1.3bn. The company employs 800 staff and is based in Århus.

People

CEO Christian Frigast, partner Søren Lindberg and investment manager Henrik Folkersen at Axcel led the deal and will join the board of directors. Simon Stampe is the CEO of IDEmøbler.

Advisers

Equity - Deloitte, (Financial Due Diligence)Equity - Implent, (Commercial Due Diligence)Equity - Jonas Bruun, (Legal)Vendor - Ernst & Young - Transaction Advisory Services , (Corporate Finance)

Sourced from: Nordic unquote" 69 (Jan 2008)