OpenGate has agreed to acquire Jøtul Group, a Norwegian maker of residential stoves and fireplaces, from Ratos AB. No financial terms were disclosed.
LOS ANGELES & PARIS–(BUSINESS WIRE)–OpenGate Capital, a global private equity firm, announced today that it has signed an agreement to acquire Jøtul Group (“Jøtul”), a leading manufacturer of residential stoves and fireplaces, from Ratos AB (STO: RATO-B), a Swedish listed investment company. Closing is expected to occur by the end of February, after certain conditions precedent are satisfied.
Headquartered in Fredrikstad, Norway, Jøtul was founded in 1853 and is one of the most well-known and respected brands globally in the home comfort heating industry. Jøtul products include cast iron and metal sheet stoves, inserts and fireplaces fueled by wood, gas and pellets. Products are sold under the brand names Jøtul, Scan, Atra and Ild, and are distributed in 45 countries across Europe, North America and Asia primarily through networks of exclusive and multi-brand specialty dealers.
Andrew Nikou, founder and CEO of OpenGate Capital, stated, “The acquisition of Jøtul has many of the hallmarks of an OpenGate Capital investment that we find exciting in a fragmented market. Jøtul is located in the Nordic region, a market that OpenGate is very familiar with having acquired Kotka Mills in Finland and where we created tremendous success during our pre-fund investment days. Through diligence we have already identified operational levers and accretive M&A opportunities that we believe will drive growth and ultimately create a stronger, healthier business.”
Julien Lagreze, a Partner in OpenGate Capital’s Paris office, stated, “Jøtul has a strong foundation. With a solid market position, globally recognized brand and excellent management team, we are excited to work together to drive innovation in the product mix and growth within the customer base.”
Leading the transaction on behalf of OpenGate Capital, Fabien Marcantetti, a Managing Director based in Paris, added, “To help fund the acquisition, OpenGate has successfully raised a senior secured bond with a number of high profile Nordic institutional investors – which speaks to the strength of the Jøtul brand – and did so within a timeframe that met the speed and certainty requirements of the seller.”
Jøtul’s procurement, marketing and product development functions are centralized in its headquarters in Norway, and it has manufacturing sites in Norway, Denmark, France and the US where products are designed to meet end customers’ needs specific to their region. The Jøtul product portfolio consists of 397 SKUs and 58 product families across four brands and are manufactured with either cast-iron or sheet metal. Jøtul products are fueled by wood, pellets or gas, depending on specific market demands.
Jøtul is the eighth acquisition through OpenGate Capital’s first institutional fund following the firm’s previous acquisitions of Power Partners, Energi Fenestration Solutions, Bois & Matériaux, Alfatherm, EverZinc, Hufcor and Mersive Technologies.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
Jøtul manufactures cast-iron stoves and fireplaces, inserts and cassettes. Jøtul has a strong global market position through the group’s primary brands Jøtul and Scan. Manufacturing mainly takes place in Norway and Denmark, with smaller units in France and the US. The company’s products are sold worldwide through its sales subsidiaries and distributors. To learn more about Jøtul, please visit www.jotul.com