OSTI APS enters strategic collaboration on royalties and licenses

Osti ApS has entered into a strategic partnership with AGK Nordic A/S. The collaboration means that AGK Nordic A/S is now responsible for product development, marketing, sales and logistics in the Nordic market.
We all know the double-bladed cheese slicer Osti Original, designed by Nils Jagd Jensen in 1963. It's in every Danish kitchen drawer and millions of copies have been sold worldwide. Since then, more Osti products have been added.
About 15 years ago, his son, Peter Jagd Jensen, took over Osti ApS. In 2017, he contacted Business Broker have the company valued for sale.
"Business Broker a thorough and professional process, even though time was short. We could never have done it ourselves.
Ulf SteinessandJohn Nygaardfrom Business Broker advised Osti ApS throughout the entire process in the negotiations regarding the license agreement and associated royalty agreement.

From enterprise sales to license agreement

"Peter Jagd Jensen called because AGK Nordic was interested in buying the company. There are many emotions involved when selling a family business. That's why the task changed along the way to become a licensing agreement, so that Osti ApS retains part of the business," says Ulf Steiness from Business Broker.
Peter Jagd Jensen says about the outcome of the agreement:
"I practically grew up at the factory, and the company has always been the central element in my life. So it was with mixed feelings that I contacted Business Broker. But it's a really sensible deal they've helped us negotiate. It means that I can now focus on exports, among other things, while being confident that Osti's domestic market is in experienced hands with AGK Nordic."
In addition to the analysis work, negotiations, and handling of legal and commercial aspects, Business Broker has Business Broker a contractual basis for Osti ApS that supports a long-term relationship between the parties.
"There's a lot of psychology involved in licensing and royalty cases. I help both licensor and licensee to turn their uncertainty into trust and confidence, because the parties' good relationship is important for the future of the brand," explains Ulf Steiness.

Fast but thorough process

A license agreement is usually two to three months in the making, but the agreement between Osti ApS and AGK Nordic A/S was negotiated in one month, which was the terms for securing production and customer agreements for the coming year.

"Business Broker quickly, yet it was a thorough process," says Peter Jagd Jensen.

The agreement between Osti ApS and AGK Nordic A/S opens up the possibility for the two companies to jointly develop products together in the future. This model suits Peter Jagd Jensen well.
"I believe that the new marketing muscle means that the brand will expand and that together we can develop good design at a reasonable price. This has always been the primary focus for Osti," says Peter Jagd Jensen.

Osti ApS

The company behind the double-bladed cheese slicer "Osti Original", which is in the kitchen drawer of almost every Danish home. Since then, several models have been added. Especially with the addition of the Osti 01 cheese slicer, Osti has won hearts all over the world, with 10 international design awards for both product and packaging. It was Nils Jagd Jensen who designed the "Osti Original" in 1963. Today, his son, Peter Jagd Jensen, owns Osti ApS.

AGK Nordic A/S

Supplier of design-oriented non-food products to retail companies in Denmark and the rest of Europe. AGK Nordic A/S was founded in 2003 and currently employs ten employees in Denmark and ten in production in Shenzhen, China.

OSTI APS

Strategic collaboration
with AGK Nordic A/S.

Task: Consulting/negotiation of license and royalty agreements.

Solution: AGK Nordic A/S was chosen as the preferred strategic partner to handle product development, marketing, sales and logistics of Osti products in the Nordic market.

Result: The agreement creates the basis for implementing an ambitious growth plan for sales of Osti products. Furthermore, the collaboration will mean that extra focus will be put on the development of new products for the Osti family.

Osti ApS: Is the company behind the double bladed cheese slicer "Osti Original", designed in 1963. It is in the kitchen drawer of almost every Danish home. Since then, several models have been added.

Business Broker advised the seller.

Peter Jagd Jensen from Osti ApS emphasizes three things:

  • I am impressed by Business Brokers of markets where you would not necessarily expect them to be experts.
  • Business Broker been very understanding of the fact that Osti is part of my heart and soul, but they have also opened my eyes to the fact that a brand can be strengthened by collaborating with other players without having to compromise on its core values.
  • Business Broker us professionally and smoothly through the process. When I sent an email with a question about the agreement at 10 p.m., I received a reply from Ulf or John at 10:10 p.m. So I felt secure throughout the entire process.