Mid-market firm Industri Kapital has sold its 40% investment in F Group, a Danish electrical goods retailer for €23.5m to DSGi, the owner of PC World and Dixons.
F Group was formed in June 2001 when Industri Kapital’s portfolio company FONA Gruppen was merged with Fredgaard Radio, owned by the Kjaer family. The family is retaining its holding in the business.
The F Group is the name behind FONA, one of the best known high street retailers of electrical goods in Denmark. It has 64 stores across the country, employing 850 staff and focuses on entertainment and communication electronics.
Since the merger of FONA and Fredgaard Radio, store-by-store sales increased to DKK2bn (€270m) by the end of 2005. This has been accomplished by a converting all the Fredgaard stores into FONA, closing non-profitable outlets, reducing headquarter costs and selling non-core businesses, such as the 2004 sell-off of its consumer financing.
Industri Kapital bought FONA in 1997 through its third fund, Industri Kapital 1997 Fund, which closed on €750m.
F Group’s new owner, DSGi, has retail and e-tail operations in 14 and 27 countries respectively, trading through 1,200 stores and online stores and employs 40,000 people. It boasts more than than 100 million customers every year. It counts Currys, Elkjøp, UniEuro, Electro World and PC City in its portfolio.