Fiskars Acquires Royal Copenhagen
HELSINKI, Finland-Fiskars is expanding its home business through the acquisition of the centuries-old Royal Copenhagen for 490 million Danish Krone, or $87 million.
Fiskars, perhaps best known for its orange-handled scissors, will acquire 100 percent of the shares in Royal Copenhagen A/S and Royal Scandinavian Modern KK Japan from Royal Scandinavia A/S, whose controlling parent company is the Danish private equity group, Axcel. The deal is expected to be completed in the first quarter of 2013.
The acquisition, which was announced last week, enlarges Fiskars' portfolio of Scandinavian dinnerware brands, which currently includes iittala, Rorstrand and Arabia, and boosts its position in Asia, where Royal Copenhagen is one of the leading dinnerware brands, Fiskars said in a statement.
Upon completion of the deal, Royal Copenhagen, whose 2011 net sales were roughly $87 million, will become part of Fiskars' home business area.
"I am proud to welcome Royal Copenhagen to our portfolio of esteemed brands, renowned for their quality, design, longevity and rich heritages," said Kari Kauniskangas, president and CEO of Fiskars. "Fiskars' ambition in the home business is to become a globally leading consumer goods company in Scandinavian design, and we are excited to bring together a unique dining offering consisting of Royal Copenhagen's Danish handpainted dining, Rorstrand's elegant Swedish dining, Arabia's Finnish homey dining, and iittala's contemporary design. Along with its world-class craftsmanship, Royal Copenhagen brings to Fiskars 30 years of valuable experience of operating in Asia, which will support our growth strategy outside the Nordic markets."
Mads Ryder, CEO of Royal Copenhagen, said in a statement that he sees a strong future for Royal Copenhagen, which was founded in 1775 by the Danish royal family. "In Fiskars, we will get an international and financially strong owner with its own deep roots in the Nordic design tradition--and respect for unique design traditions that are more than 360 years old. In other words, we will get an owner with both the experience and the capital to continue the very healthy development process and international expansion that Royal Copenhagen has already started," he said.