Ballingslöv acquires the Danish company Svane Køkkenet as a new channel of distribution into the Danish market – annual supply value for Ballingslöv is approximately 250 MSEK starting 2005.
As of 19 March 2004, Ballingslöv has entered into an agreement regarding the acquisition of the trademarks, franchise concepts and all other rights regarding Svane Køkkenet.
Svane Køkkenet consists of 26 kitchen stores and a joint company for purchase, marketing, product development etc. The chain of stores have appr 200 employees and an annual turnover amounting to appr 450 MDKK or appr 550 MSEK. Svane Køkkenet is one of the two or three largest and most well known brands on the Danish kitchen market. The distribution value from Ballingslöv to the Svane stores will amount to appr 250 MSEK annually, starting 2005. This will lead to a 20 per cent increase of the Ballingslöv Group’s turnover. Together with other Ballingslöv companies in Denmark the total Group activities will be sales exceeding half a billion SEK and 300 people employed.
In connection with Ballingslöv’s purchase of trademarks etc, the previously independent stores will be organised as franchises, thereby acting even more profiled and uniform. Svane Køkkenet is expected to strengthen its market position even further.
Svane Kökkenets’s entire demand of kitchen and bathroom furniture will be produced in the Ballingslöv Group’s Swedish factory Ballingslöv AB in Ballingslöv. To increase capacity, investments amounting to appr 30 MSEK will be made and appr 60 persons will be employed.
The storage and assemblage facilities for the components and products from Ballingslöv AB will be situated in Denmark, where the components and products will be assembled and from where the completed kitchen and bathroom products will be delivered. The investments in Denmark regarding assemblage equipment etc will amount to appr 15 MSEK. The Danish site will employ appr 30 persons.
The build-up of necessary resources regarding employees, premises, machines and equipment in Sweden and Denmark will be made during 2004. Start-up costs are estimated to 5 – 10 MSEK. Deliveries will start in April 2005, which means that the Ballingslöv Group net profit per share is assessed to be positively affected already for the 2005 financial year.
The consideration for the trademarks and the other rights consists of two parts; a fixed sum (55 MSEK) and a variable sum based on the development of Ballingslöv’s deliveries to the Svane-stores over a four-year period. The consideration will be paid 2008 and 2010.
Nils-Erik Danielsson, President and CEO
Ballingslöv International AB (publ)
Further information can be obtained from Nils-Erik Danielsson,
Direct phone +46 (0) 451-46 101, mobile phone +46 (0) 708-946 101
Ballingslöv International AB is one of the leading manufacturers of kitchen fixtures in Scandinavia and Great Britain. The products are sold under several strong, and on respective market well-known, trademarks, amongst others Ballingslöv, JKE Design, DFI, Multiform and Paula Rosa. Ballingslöv has production facilities in Sweden, Denmark and in Great Britain and employ appr 870 persons. Ballingslöv AB was founded in 1929 and the Ballingslöv share was listed on the Stockholm Stock Exchange O-list in June 2002. Since January 2004, the share has been listed on the Stockholm Stock Exchange Attract40-list. The Ballingslöv Group’s net turnover in 2003 amounted to 1,205 MSEK and the operating result before goodwill amortization amounted to 140 MSEK.