DICOTA brand is sold: OSM Group focusing on core business
OSM Group sells DICOTA brand, which offers a range of IT and mobile carrying cases and accessories, through a management buyout. This is a natural development for both parties as their business focus differs. The divestment is an important step in OSM's strategy to be a dedicated OEM supplier in the growth market of mobile accessories in the mobile phone, IT and fashion industries. Consumers are expected to purchase protective cases at a value of USD 18.3 billion per year.
DICOTA has been a wholly owned brand of OSM Group since the acquisition in 2008.
“The acquisition of DICOTA helped us to increase our presence as a design and manufacturing partner towards the IT sector. With a strong client base in the mobile phone category we needed to follow market convergence and allow for a widened portfolio”, says Phil Mulholland, President of the OSM Group’s Commercial Operations. “The integration of one of DICOTAs business divisions serving global IT OEM’s brought several important client relationship and portfolio’s. It continues to show strong synergies.”
OSM has over the past six months evaluated its own branded business DICOTA to identify which business areas are consistent with their future strategy and which parts of the business could be divested. The anticipated synergies between OSM product portfolio and strong OEM client base as well as the channel coverage offered through DICOTA has been less than expected. The parts of DICOTA involved in this divestment case are the two remaining business divisions managing own branded segment towards distribution channels and mobile office solutions.
“The market has changed and competition has increased in recent years. We believe that both OSM Group and DICOTA will achieve its full potential with a sharper focus on their respective businesses. Another important part of the sale of DICOTA has been to find a satisfactory solution for the personnel. We have that now”, continues Johan Ledel, CEO of the OSM Group.
“With our focus on being a OEM supplier to mobile, IT and fashion industry, we are now well positioned to take advantage of developments in the market for mobile accessories. We have a clear offering where we combine customized product design with a high level of expertise in large scale manufacturing”, says Johan Ledel.
“It’s without any doubt that DICOTA has potential, and I’m confident in this development. We operate in a fast growing market and DICOTA and OSM Group have been evolving in different directions. Therefore, this is a natural divorce. The intention of this MBO is to allow a healthy development of DICOTA and leverage synergies more strategically in between business areas”, says Michael Mühlenbruch, CSO of Dicota.
This MBO is effective retroactively from 1st of March 2013, and DICOTA will remain under the leadership of Michael Mühlenbruch, Ruedi Nauer, CEO/CMO of DICOTA and Stephan Meyer, CDO of DICOTA.
For further information, please contact:
Johan Ledel, Chief Executive Officer, OSM Group, +46-704455123, email@example.com
Michael Mühlenbruch, CSO, DICOTA, +49-172-5677484, firstname.lastname@example.org
Erika Wennerström, Director Strategy & Communication, OSM Group, +46-704455189, email@example.com
About OSM - OSM Group offers carrying accessories for mobile phones, tablets and laptops. Headquartered in Sweden, with a further 11 local offices in the USA, India, South Korea, Japan and China. Last year, the company designed and produced accessories worldwide for well-known brands such as Nokia, RIM, HP, Samsung, Lenovo and Sony.
About DICOTA - DICOTA designs and manufactures innovative, durable and stylish carry solutions and accessories for personal media devices. The portfolio is made up of bags, tablet and smartphone cases and mobile office solutions. The DICOTA offering also includes a range of practical accessories such as mice, locks, USB hubs, keypads and screen products.