CapMan sells Finlayson

CapMan is selling Finnish home textile manufacturer Finlayson & Co Oy to Jukka Kurttila and Petri Pesonen, founders of Finnish advertising agency Bob the Robot, and to its third new owner Risto Voutilainen. Funds managed by CapMan invested in Finlayson in 1999, when a manufacturer of flexible foam products Espe Group Oy was purchased from Royal Dutch Shell plc Group.

PRESS RELEASE

Funds managed by CapMan sell the Finnish home textile manufacturer Finlayson & Co Oy to Jukka Kurttila and Petri Pesonen, the founders of the Finnish advertising agency Bob the Robot, and to third new owner Risto Voutilainen. At the same time Finlayson & Co Oy sells Familon duvets and mattresses to Trading House Eesti, which is part of the Trading House Scandinavia AB, one of the largest European bedding manufacturers. The exit from Finlayson & Co Oy will not change CapMan’s outlook estimate for 2014 given on 8 May 2014.
Finlayson & Co Oy is known for its high quality Finlayson home textiles as well as Familon duvets, beds and mattresses. Finlayson had net sales of EUR 44.8 million in 2013 and it employs 265 persons in Finland, Russia and the Baltic countries.
“We have been working a long time together with CapMan, during which Finlayson has undergone many changes, always adapting to the fast developing market conditions. Finlayson’s success is especially attributable to the company’s professional staff. CapMan has supported the management in many ways and our collaboration has been rewarding,” tells Finlayson & Co Oy’s CEO Jouko Salakka, who will continue as the CEO of Familon duvets and mattresses.
“We are glad that both trademarks Finlayson and Familon got such good new homes. Finlayson’s strong brand will be strengthened further and Familon will continue its development as part of a bigger international company,” comments Tuomo Raasio, Senior Partner at CapMan and responsible for the investment.
Finlayson and Familon brands continue their development under new owners
The new owners of Finlayson & Co will invest in Finlayson brand also in the future:”Finlayson is almost 200 years old and still the most loved Finnish home textile brand. It will be wonderful to work in such a remarkable company. We want to raise Finlayson to the heights that it deserves. We will bring new enthusiasm, courage and brand management skills to Finlayson. For us, this is not just a project. We are not setting Finlayson up for sale but we are setting out to own and develop the company with long-term goals in mind. We are buying a company that is in good shape and profitable. Finlayson has done very well thanks to the professional ownership of CapMan, even during the challenging times in the consumer goods industry”. In addition to Kurttila and Pesonen, Risto Voutilainen becomes the third owner of the company with an equal share.
Finlayson & Co Oy’s other trademark, Familon duvets and mattresses, continues as part of a bigger international company Trading House Scandinavia AB. The company is acquiring the two production units in Finland and one in Russia, as well as Finlayson retail stores in the Baltics and Russia.
“Finlayson’s Familon trademark enjoys established and very strong position in Finland, primarily in the area of textile design,” adds Peter Hunt, the owner of Trading House Scandinavia AB. “If we add up strong financial standing of our group, innovative high-tech manufacturing and development as well as the export markets, we will get a mutually supporting model to strengthen our position in the beddings market of Scandinavia and Europe,” adds Hunt.
CapMan and Finlayson have been collaborating since 1999
Funds managed by CapMan invested in Finlayson in 1999, when a manufacturer of flexible foam products Espe Group Oy was purchased from Royal Dutch Shell plc Group. In 2000 Espe Group Oy acquired Finlayson, the famous Finnish home textile brand back to Finland from a Norwegian company Winder ASA. In 2006, Finlayson and Familon became the core of Espe Group’s business and at the same time the company’s name was changed to Finlayson & Co Oy. Furthermore, in 2007 the company exited Espe Oy, the manufacturer of flexible foam products, and Ewona Oy, the manufacturer of non-woven products. Since then, Finlayson has been known for its Finlayson home textiles and Familon duvets and mattresses. Today Finlayson is one of the most known Finnish home textile brands.
Investors of funds managed by CapMan have previously received a significant part of the returns of the investment. Following the transaction CapMan receives carried interest income from Fenno Program, Finnmezzanine II B and Finnmezzanine III B funds. The exit will not change CapMan’s outlook estimate for 2014 given on 8 May 2014.