CoBe Capital signs agreement to acquire the furniture division of Gorenje, d.d. (LJSE: GRVG)
Velenje, Slovenia – CoBe Capital, a global private investment firm focused on operation of non-core and underperforming business units, announced today it has signed an agreement to acquire Gorenje Kuhinje and Gorenje Notranja oprema, collectively the furniture division of Gorenje, d.d. (LJSE: GRVG). The transaction is expected to close on March 1, 2013.
The Gorenje furniture division is a Slovenian manufacturer of kitchen and home interior cabinetry. The furniture division has nearly 400 employees across its three productions locations in Velenje, Nazarje and Maribor, Slovenia.
Gorenje had implemented several measures in recent years to improve the performance of the furniture division, however the desired results remained elusive and Gorenje decided to look for a strategic partner and divest the business.
Neal Cohen, CoBe Capital’s founder and Managing Director, stated, “We are extremely honored to have the trust and faith of Gorenje to be a brand partner going forward. We see tremendous opportunity to grow the furniture division of Gorenje through its quality craftsmanship, design and efficient production facilities offering quite competitive cost structures. We couldn't be more pleased with our first acquisition in Slovenia.”
Dr. Henning Walf, CoBe Capital’s Managing Director for Northern Europe, stated, “Gorenje needed a strategic partner who was committed to maintaining the high standard of quality that the Gorenje brand represents. We view the Gorenje furniture division as a highly complementary operation to Warendorf in terms of process capabilities, market presence and breadth of product range.”
Dr. Walf will work closely with the existing management teams at Gorenje Kuhinje and Gorenje Notranja oprema to strengthen the company’s operational and financial fundamentals, as well as drive expansion across Europe and into other markets around the world.
Dr. Walf and Mr. Darren Chaffee led the transaction on behalf of CoBe Capital. This is Dr. Walf’s third transaction with CoBe Capital, following the acquisition of Warendorfer Küchen and the assets of Kornmüller GmbH & Co KG. This transaction represents CoBe Capital’s first investment in Slovenia. Within 60 days of closing the acquisition of Warendorfer Küchen, CoBe Capital has now added two high-quality, low-cost European kitchen cabinetry manufacturers to complement Warendorf and deliver cost synergy to the operation. With the addition of Gorenje Kuhinje and Gorenje Notranja oprema, CoBe Capital will have operations in France, Germany, Austria and Slovenia, in addition to its satellite offices in Paris, France and Cologne, Germany.
CoBe Capital was represented by Markus Bruckmüller, WolfTheiss.
About Gorenje Kuhinje and Gorenje Notranja oprema
Gorenje Kuhinje and Gorenje Notranja oprema, together comprising the furniture division of Gorenje, are Slovenian manufacturers of kitchen and home interior cabinetry. Their product range includes modern, classic and rustic designs that allow for unlimited customization of color, surface and measurement with a highly engineered production process for both solid wood and veneer kitchens that ensures furniture of the highest quality.
About Gorenje, d.d. (LJSE:GRVG)
Gorenje Group is a leading European home appliance manufacturer with a tradition spanning over 60 years. The offer of home appliances branded Gorenje, Gorenje+, Asko, Atag, Pelgrim, Mora, Etna, Upo, and Körting is extended with HVAC equipment, other home appliances and kitchen furniture. Gorenje Group, with worldwide annual revenue of EUR 1.34 billion, exports home appliances and other home products to over 70 countries.
About CoBe Capital
CoBe Capital, a global private investment firm with a permanent capital base, specializes in the acquisition and operation of non-core and underperforming business units in the Americas and Europe from leading global corporations. CoBe Capital owns and operates a diversified portfolio of companies and strives to achieve long-term growth based on lean management and continuous improvement business philosophies. CoBe Capital was founded by Neal Cohen in 1994. For more information on CoBe Capital, please visit cobecapital.com.