CASE

Indoor Group

Company Information: 

Indoor Group got new owners, as three Indoor Group entrepreneurs, a Finnish capital investor Sievi Capital Oy and Etera Mutual Pension Insurance Company bought all the company’s shares from Kesko.

With its chain concepts, Indoor Group Oy is the leading home furniture and decorations retailer in Finland and Estonia. The company owns the retail chains Asko and Sotka and the sofa factory Insofa Oy, as well as a subsidiary in Estonia. In 2016 the group achieved a turnover of 186,7 million euros and employed over 600 persons.

Sievi Capital Oyj is a listed (Nasdaq Helsinki) investment company that invests in small and medium-sized enterprises in the Nordic Countries. Sievi Capital invests in profitable companies with growth potential and increases the value of its investees via corporate governance.

Jouko Soikkeli, Jani Länsimäki and Timo Hakkarainen are long-term Sotka entrepreneurs and have worked at Indoor Group since the 1990s.

Etera is a mutual employment pension insurance company that provides pension cover for Finns and is responsible for assets of over six billion euros. Etera will merge with Ilmarinen Mutual Pension Insurance Company on 1 January 2018.

Former Situation: 

Entrepreneurs Jouko Soikkeli, Jani Länsimäki and Timo Hakkarainen were familiar with the business of Indoor Group and were interested in acquiring the company. 

In accordance with its new strategy, Kesko aims to concentrate on food and beverage retail, building construction and systems as well as vehicle trade. Therefore, the entrepreneurs thought that Kesko could be open to acquisition negotiations concerning Indoor Group.

The Process: 

ProMan IMAP Finland first assisted the entrepreneurs in planning the process, developing the business plan and finding a suitable equity investor partner and, after that, assisted Sievi Capital, Etera and the entrepreneurs in carrying out the actual acquisition and funding process.

The purchase price was 67 million euros without debt, of which 62 million euros were paid in cash and 5 million euros by means of a loan granted by Kesko.

The Situation Today: 

- Both chains will remain independent as well in Finland as in Estonia. In the future, we will strengthen the characteristic features of Asko and Sotka and serve the consumers even better with a wide diversity of supply. Indoor Group is in a good condition, and that is why it is worthwhile to aim for a strong growth on a new ownership base, says the group’s new CEO Jouko Soikkeli. 

- Indoor is already a market leader in furniture retail in Finland. As the ownership base changes, we will support the company’s growth, strongly leaning on the proven entrepreneur-managed culture. Indoor’s stable development in the decoration and furniture market and the strong brands convinced us to join in building an even stronger Indoor together, says the CEO of Sievi Capital Heikki Vesterinen.

ProMan Imap Finland was the buyer’s advisor in the acquisition.