22 Dec 06
Litorina Kapital acquires Pelly Industrier Holding AB, a leading Swedish company within flexible storage solutions for consumers and for the kitchen, bathroom and wardrobe industry. Following the acquisition, Litorina owns 71% of the company with the remaining part being owned by Pelly’s management and other key people. The sellers are a number of private investors, including the company’s management.
Pelly was founded in the 1940’s in Hillerstorp in the South of Sweden and initially focused on production of wire and wire based products. Since 2000, the company has focused on storage solutions in a wider sense and today it has a full range of products within sliding doors and freestanding storage, and products for the kitchen, bathroom and wardrobe industry. Within sliding doors, Pelly markets its products under the brands Mirro and Aliax and within freestanding storage under the brand Pelly System. Customers include IKEA, Kvik, Ballingslöv, Beijer and ByggMax. Over the past three years, the company has grown top line with some 18% p.a. The underlying market is exhibiting strong growth, driven primarily by the increasing interest for home decoration and the associated growth of the DIY segment. Pelly had in 2006 a turnover of some SEK 245 million with strong profitability and 140 employees in its facilities in Hillerstorp, Jönköping, Hornsyld (Denmark) and Kaunas (Lithuania).
- Pelly is a very well-run Swedish company with a strong position in an interesting and growing market. The company’s CEO Stefan Jarbratt has together with the management created a unique company culture based on high customer satisfaction, efficient production, innovation and good design. Together with the company’s management we now look forward to take the company to the next level. The strategy is to achieve growth organically and/or through acquisitions and thereby solidify Pelly’s position in its key markets with a remaining focus on product development and design and in addition continue the promising expansion into adjacent geographical markets, says Jörgen Ekberg, Senior Partner at Litorina Kapital.
- With Litorina Kapital as a new owner, Pelly will have a strong partner that shares our view on the company’s future strategy and that adds expertise and financial strength that can support Pelly’s future growth. Together with Litorina, we are ideally positioned to further capitalize on Pelly’s strong market position, says Stefan Jarbratt, CEO of Pelly.
For further information, please contact:
Senior Partner, Litorina Kapital
Tel: +46-8-545 180 10 , +46-708-11 31 60
Tel: +46-370-37 35 10 , +46-706-58 28 09
Pelly is a leading supplier of storage solutions in the Nordic region. Pelly’s ambition is to make people’s lives easier by offering smart and functional storage solutions for the home. Pelly’s industrial customers are the leading producers of kitchen, bathroom and wardrobe interiors. The company’s product concept is also offered via retailers and distributors of building materials under the brands Pelly System, Aliax and Mirro. Pelly designs and develops its products in-house in order to achieve optimum functionality and quality combined with simplicity and beauty. The company has around 140 employees and has a turnover of some SEK 245 million with strong profitability.
For further information see www.pelly.se
About Litorina Kapital
Litorina Kapital, founded in 1998, is a private equity firm that focuses on acquiring and industrially developing small to mid sized companies in the Nordic region together with senior management. Litorina offers extensive, in-depth expertise through its own organization and its network of industrial advisors.
Litorina Kapital is backed by well recognized long term institutions that together have invested approximately SEK 1 000 million in Litorina Kapital for investments in the Swedish Lower Mid-Market. For more information, please visit www.litorina.se