Equistone Partners Europe invests in the newly established Vivonio Furniture Group

Funds managed by Equistone Partners Europe Limited (“Equistone”) have acquired a majority stake of 67% in the newly established Vivonio Furniture Group (“Vivonio” or “the Group”), Munich. Investors advised by Orlando Management AG have sold their majority stakes in MAJA, Staud and SCIAE, which are currently being run as independent companies, to Vivonio. Orlando, together with the Vivonio management team, will retain a 33% stake in the combined Group.

 

• The Vivonio Furniture Group will bring together three established furniture makers: MAJA (manufacturer of ready-to-assemble furniture), Staud (manufacturer of bedroom furniture) and SCIAE (French manufacturer of bedroom and living room furniture) with a combined annual revenue of around EUR 200 million.
• Equistone’s investment will support growth by generating synergies in the combined Group and driving greater international reach.
• Over 100 jobs will be created through major investment in a lightweight building panel manufacturing facility.

Equistone’s investment will support the future sustainable growth of the three furniture brand manufacturers and will generate further synergies under the Vivonio umbrella. The consideration is undisclosed.

Vivonio will bring together three well-known furniture manufacturers: MAJA Möbel-Werke, with its two sites in Kasendorf/Oberfranken and Wittichenau/Saxony, Martin Staud, which is based in Bad Saulgau/Baden Württemberg and SCIAE from Dienville (Champagne-Ardenne/ France).

The MAJA Group was founded in 1964 by Manfred Jarosch and now employs over 450 people. Production and storage facilities at the Wittichenau/Saxony site is currently being expanded by 45,000 m2 with an investment of EUR 60 million. These new areas will be used primarily for the production of lightweight building panels, predominantly for Swedish furniture chain IKEA. “Over 100 new jobs will be created by the further expansion of our plant in Wittichenau. This is excellent news at a time when the region is experiencing particularly weak economic conditions ” adds Heinz Hien, Managing Director of MAJA, who has been with the Company for 31 years. This investment in the rapidly growing segment of lightweight building panels opens up new strategic options for MAJA and Vivonio Furniture Group as a whole. Around 200,000 individual furniture parts will be processed in Wittichenau every day. Investors advised by Orlando had acquired MAJA in 2008.

Martin Staud from Bad Saulgau is one of the longest established manufacturers in the German furniture industry. Founded as a family company as early as 1653, Staud has become one of Germany’s leading manufacturers in the bedroom furniture sector and has around 140 employees. The company operates throughout Europe and exports represent 35% of its sales. In early 2010, the Staud family sold the company to investors advised by Orlando.

French company SCIAE currently employs around 250 staff in Dienville (Champagne-Ardenne/ France) and specialises in the manufacturing of innovative self-assembling furniture for living rooms and bedrooms, as well as children’s rooms. Exports account for more than 20% of production. Towards the end of 2010, investors advised by Orlando acquired a majority stake in the French company.

“We are really looking forward to working with the well-established and highly experienced management team of the new Vivonio Group. Together, we will work to further expand the three existing furniture manufacturers, MAJA, Staud and SCIAE, and drive the international growth of the Group as a whole,” says Michael H. Bork, Managing Director of Equistone Partners Europe.

“The furniture sector consists of many medium-sized companies with opportunities for consolidation and we plan to acquire further high quality furniture companies. Management succession is a more important issue for Companies in the furniture industry than in many other sectors, and we want to position the partnership with Vivonio as an attractive solution in the event of an unresolved family succession,” comments CEO Tobias Fuhrmann on the company’s objectives. Together with CFO Niels Ackermann, he will head up the newly created furniture group.

The Equistone Partners Europe directors responsible for the transaction are Michael H. Bork and Oskar Schilcher.