Semcon continues to streamline its business and sells Propeller

Semcon is streamlining its portfolio and selling Propeller by Semcon to the design group Design Communication. The sale includes the company plus 36 employees and the Propeller name.

Semcon bought propeller at the beginning of 2005. The aim at the time was to make Semcon one of the leading European players in design.

“The situation is different now. We have major, specialised design expertise in a number of prioritised areas, something that has been further underpinned by the acquisition of IVM Automotive. The Propeller business has not focused on any specific segment and their customer base has mainly been outside Semcon’s focus industries with their services mainly aimed at consumer products. Propeller hasn’t provided any synergy effects either that we’d hoped for when the company was bought,” says Semcon’s CEO, Henrik Sund.

To provide the best future conditions for Propeller’s expertise and its business, Semcon has chosen to sell it to Design Communication, which has its main business in Göteborg.

“We have worked with Design Communication’s subsidiary Cliff for some time and they have the right conditions to make the most of and develop Propeller’s portfolio. The customer projects that Semcon has with Propeller as a supplier will continue according to plan,” concludes Sund.

“Cliff started setting up in Stockholm last autumn. With the acquisition of Propeller we can achieve our goal of being the biggest design company in the Nordic region, more quickly,” says Johan Andinsson, CEO of Design Communications’ subsidiary Cliff Design. “We are looking forward to a happy working relationship with Semcon in Sweden and internationally.”

The sale means a capital loss for Semcon of about SEK 2 million in the Design & Development business area. The sale is effective from 1 April 2007. Propeller’s sales in 2006 were SEK 23.2 million.