Litorina IV has signed an agreement to acquire the majority of the shares in KungSängen, a leading Swedish manufacturer and retailer of beds and bed accessories. The company has an annual turnover of about SEK 300 million and sells more than 30 000 beds through 37 KungSängen stores, a third-party retailer in Finland and through its own webstore. The Gustafsson family, previous owners of KungSängen, will retain a considerable ownership in the company.
Since its inception in 1998, KungSängen has grown organically to generate annual sales in excess of SEK 300 million. The product range consists primarily of high-quality beds manufactured by KungSängen, bed linen and other related bedroom accessories, sold under the KungSängen brand. The products are primarily sold to private consumers in 37 KungSängen stores, through the proprietary webstore, and via a third-party retailer in Finland. Most beds are manufactured, according to customer specifications, in the KungSängen production facility in Enköping, Sweden.
“The company has experienced a very strong development over the past few years, and we are proud to see KungSängen ready to take its next step”, says Peter Gustafsson, shareholder and CEO of KungSängen. “KungSängen stands well prepared to continue its development, and we are pleased to have found a long-term partner in Litorina. We look forward to continuing the company’s expansion together with Litorina, to strengthen the commercial platform and the organisation, and to further develop KungSängen’s channel and sales strategies”.
“KungSängen has established a strong standing in the Swedish bed market with strong brand recognition and a competitive customer offering based on high-quality products”, says Jörgen Ekberg, Managing Partner at Litorina Capital Advisors, advisor to Litorina IV. “The company is well positioned to continue its profitable growth in its retail stores as well as online, and we very much look forward to supporting management on this journey.”
KungSängen, founded in 1998, is a leading Swedish manufacturer and retailer of beds and bed accessories, catering mainly to the mid-price segment. KungSängen manufactures the majority of its beds at the production facilities in Enköping, Sweden, and the primary sales channels are KungSängen stores and the proprietary webstore. For more information, please visit www.kungsangen.com.
Litorina, founded in 1998, focuses on acquiring and industrially developing companies together with their management teams. Litorina offers broad and deep expertise both via its own organization and through its network of industrial advisors. Litorina Capital Advisors AB serves as an investment advisor for Litorina’s funds. Litorina is backed by a number of reputable institutions that have jointly invested approximately SEK 4.8 billion in Litorina’s four funds. For more information, please visit www.litorina.se.