Norwegian furniture group Ekornes wants to purchase furniture discounters Internasjonal Møbel Gruppe, also from Norway. Stressless’ parent company wants to launch IMG in markets where it already has a strong presence. If the research of the company’s books goes according to plan, the purchase should be finalized by 1 May 2014.
Increase turnover, lower costs
The budget furniture of IMG is made in Thailand and Vietnam and generated a turnover of some 30 million euro last year, but Ekornes is aiming for turnover growth and synergy advantages with the purchase. The combined purchase power and a more efficient logistics system should help achieve these goals.
IMG is currently mostly active in Scandinavia, the United Kingdom, Germany, North America and several markets in Asia and Oceania. IMG will continue to be a separate brand, with its own products and its own management, even when Ekornes becomes its parent company.
Ekornes claims to be Scandinavia’s largest furniture manufacturer, with 6 Norwegian factories and 1,400 employees. Brands like Stressless (couches, sofas), Ekornes Collection (sofas) and Svana (matrasses) are all part of the company, whose total 2012 turnover was 330 million euro.
(Translated by Gary Peeters)