generational succession that unique furniture classics remain in Danish hands
Since 1954, Erik Jørgensen Møbelfabrik A/S in Svendborg has produced design furniture of exquisite quality. Among other things, the iconic Wegner OX Chair.
A generational succession in the furniture company has resulted in the sons of founder and designer Erik Jørgensen selling the family's life's work to Fredericia Furniture A/S, which produces furniture classics by Børge Mogensen and Nanna Ditzel, among others.
Thus, a central part of the unique Danish design heritage remains in Danish hands.
John Klindt and John Nygaard from Business Broker advisors to the seller during the sales process.
How do you value a brand?
Advising the owners of Erik Jørgensen Møbelfabrik in the generational change has been a special task with a field of hand-picked buyers, says John Nygaard:
"Erik Jørgensen Furniture Factory's products can almost be equated with Danish cultural heritage. They are iconic brands that require an owner-led buyer candidate who is able to safeguard both the craftsmanship heritage and the business potential."
The valuation has been complex because Erik Jørgensen Møbelfabrik is a brand in itself.
"You can't price brands based on historical earnings alone. We have advised Erik Jørgensen Møbelfabrik in valuing based on a match with a buyer who has a love for Danish design and can achieve synergy effects from the purchase. Fredericia Furniture, which already has a collection of furniture brands on the international market, can do this. This has meant added value for the brand," explains John Klindt.
Buyer has ambitions in the furniture industry
Fredericia Furniture A/S and Erik Jørgensen Møbelfabrik A/S will continue to be marketed as two brands.
"We want to present a unified collection with two brands that complement each other - both in terms of design and approach to the market. We want to build on the fantastic foundation of the classics in our collections, and we want to continue the ambition that Fredericia Furniture and Erik Jørgensen share - to offer a contemporary product range that is relevant in a modern context," says a press release from Fredericia Furniture, which also emphasizes that the new owners will maintain production in Svendborg.
This is appreciated by former CEO of Erik Jørgensen Møbelfabrik, Niels Jørgensen, who together with his brother Ole Jørgensen is the seller of the furniture factory their father founded.
"In recent years, several Danish design companies have chosen to sell to private equity funds or large international conglomerates. When Fredericia Furniture takes over, Erik Jørgensen remains part of a local furniture industry. Fredericia Furniture ensures that our upholstery skills, which have helped create a large number of design icons, remain closely linked to both production and development of new products in Svendborg," says Niels Jørgensen.
The brothers Niels and Ole Jørgensen have left the organization and ownership group in connection with the generation change.
ERIK JØRGENSEN MØBELFABRIK A/S
Fredericia Furniture A/S
acquired Erik Jørgensen Møbelfabrik A/S
Assignment: Sale of unique "iconic company" in connection with generational succession.
Solution: A limited industry search led to Fredericia Furniture A/S as the right buyer. Confidential dialog and targeted negotiation led to a final agreement.
Result: Erik Jørgensen Møbelfabrik is generational changed to a Danish company that wants to continue to use local skills and production. The combined company gains significant strength for growth in the Nordic and international markets.
Erik Jørgensen Møbelfabrik A/S is an icon in the Danish furniture industry that has managed to attract recognized designers. The company has strong roots in craftsmanship and a clear sense of quality.
Business Broker advised the seller.
