China’s qumei bids $630 million for ekornes furniture today o goshi technique

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Ekornes ASA owns such brand names as Ekornes, Stressless, Svane and IMG. Stressless is a global furniture brand, while Ekornes, Stressless and Svane are known brands in the Norwegian furniture market. IMG is best known in Australia and the United States. Manufacturing takes place at the group’s nine factories, five of which are located in Norway, one in the United States, one in Thailand and two in Vietnam.

The remaining approximately 9.5% of the shares in Qumei Invest will be controlled by a fund managed by Huatai. Huatuai is a private equity fund which is ultimately controlled by Huatai Securities Co. Ltd., a public company which provides comprehensive financial services in and outside China.

Shareholders representing 25.65% of the total share capital of Ekornes have already given their pre-acceptances to the voluntary offer, subject to customary conditions. The list of shareholders with pre-acceptances includes Nordstjernan AB, Stian Ekornes and certain other members of the Ekornes family, and Nils Gunnar Hjellegjerde.

“This agreement opens new growth opportunities for Ekornes and our renowned brands such as Stressless and IMG in China and in existing markets,” said Ekornes CEO Olav Holst-Dyrnes in a release. “Qumei is a leading furniture group with more than 850 stores in China. We will benefit from Qumei’s insight into Chinese consumers’ design and product preferences and gain accelerated access to the Chinese market.”

“Existing agreements with our retailers and other business partners will continue as before,” he said. “Existing brand names will be further strengthened. The headquarter remains in Sykkylven, Norway, and management continues in its current positions. The manufacturing sites in Norway, the (United States), Thailand and Vietnam will continue as before.”

“We will also continue to invest in our highly automated production facilities to further improve our competitiveness,” Holst-Dyrnes added. “All in all, we believe the agreement will contribute to increase sales and production volumes at our current production facilities.”

“Qumei’s sophisticated digital marketing approach, complimentary product range and sourcing capabilities should make us a better and stronger partner for all our retailers,” Holst-Dyrnes added. “Better customer understanding, improved concepts and enriched distribution channels should create accelerated sales of our Stressless, IMG and Svane brands. All in all, we believe the agreement with Qumei will constitute an opportunity for more sales in China and elsewhere, and in turn result in increased production at our current production plants.”

“We have met with Qumei several times and visited the company in China,” said Ekornes ASA Board Chairman Nora Larssen. “We have been impressed by Qumei’s ability to develop successful products and marketing concepts, and we see great potential for Ekornes to continue its success under this new ownership. The two companies are complimentary in terms of market position, competence and the industrial logic is evident. Both companies are filled with passion for furniture and quality products.”