Design Holding closes 2021 with a boom in revenue and ebitda and acquires Designers Company from Polaris

Daniel Lalonde

Design Holding, international group operating globally in the high-end design sector, controlled by Carlyle And Investindustrial and who is preparing for lands on Piazza Affari, ended 2021 with record growth in pro-forma revenue of 700.3 million euros (+ 21.1%) and profitability, with an ebitda of 190.3 million (+ 27.7%) and an ebit of 151.8 million ( + 33%), against a cash generation of DKK 142 million. The group also signed an agreement to acquire the Danish company Designer companywhich includes brands such as Menu And by Lassen and that it will be acquired using the resources available at group level (see Design Holding’s press release here). Scandinavian private equity seller Polaris Private Equity, which again bought the Danish group in 2018 (see Polaris’ press release here). Also from Polaris, Investindustrial had bought in 2018 Louis Poulsen LightingDanish architectural lighting company (see another article by BeBeez), later transferred to Design Holding.

Design Holding had closed the consolidated financial statements 2020 with net turnover of 520.6 million eurosa EBITDA of DKK 128.9 million It is a net profit of DKK 20 millioncompared to a net financial debt of DKK 605.5 million (see the Leanus report here, after signing up for free). However, given the acquisitions made in 2021, it should reach invoicing around the end of 2022 850 millionwhich generates approx 200 million ebitda. The goal for the group, which has nine production facilities in Italy, Spain and Denmark, would in fact be a successive doubling of revenue, ie. one billion, to be achieved both through internal growth and through new acquisitions. The investment banks rely on these figures to make their proposals in connection with the definition of the syndicate for placement of the hypothesis.

In this connection, we would like to remind you that the advisory task for the stock exchange listing was handed over to the investment bank Lazard and who recently joined Design Holding Silvia Milanese as General Counsel (from the international firm Latham and Watkins to coordinate the legal aspects of the group) e Matteo Luoni with the role of Group Strategy, M&A and Business Development Director (see second article by BeBeez). While the Canadian Daniel Lalonde he was appointed Managerwho takes the lead of the group from October 1, 2021, replaces in the role Gabriele Del Torchio, who remains Chairman of the Board of Design Holding. Lalonde has previously spent 10 years at LVMH, first as President and CEO of LVMH Watches & Jewelery North America, then as President and CEO of Louis Vuitton in North America and finally as President and CEO of e Moët & Chandon and Dom Pérignon Global.

Design Holding was born in September 2018 (see another article by BeBeez) from the merger under a single umbrella of the Danish lighting brand Louis Paulsendiscovered as said in June 2018 by Polaris, by the second iconic lighting brand Flos and of B&B Italy. All companies in Investindustrial’s portfolio that brought them to Design Holding, while Carlyle provided the financial ammunition for subsequent acquisitions. On a trip B&B Italyin 2018 almost simultaneously with the creation of Design Holding, had acquired the historic Milanese furniture design brand Azucena (see another article by BeBeez), almost two years after the acquisition, in September 2016, of the kitchen brand Arclinea (see another article by BeBeez). In April 2021, the group announced the acquisition YDesign Group LLCan American e-commerce company specializing in furniture based in Walnut Creek, California (see another article by BeBeez).

As for the most recently announced acquisition, just that of Designer company, the Danish group has a strong presence in the design market in Northern Europe and the USA and is considered a pioneer in the new Nordic style. The group offers a wide range of products, including furniture, lighting and accessories. Designers Company was formed with the acquisition of Menua Copenhagen-based company founded in 1978, which produces a wide range of furniture, accessories and lighting products, and has subsequently developed a cultural heritage collection through the acquisition of the design company by Lassen. In addition to these brands, the company has all the rights to a unique portfolio of products created by historical designers such as. Ib Kofod-Larsen, Arthur Umanoff, Mogens Lassen And Flemming Lassenas well as Vilhem Lauritzen. Today, the Designers Company boasts a substantial archive of over 2,000 inherited products and has a strong e-commerce presence. The management team is led by the CEO Danny Feltmann (who has previously held leading roles in Bang & Olufsen and H&M) and director of design Joachim Engell-Hansen.

To return to Design Holding’s 2021 results, the Group has expanded its brand portfolio and product range with joint venture Fashion furniture design (FF Design) signed in May with the fashion brand Fendi (see second article of BeBeez). Not only. In 2021, Design Holding launched a number of iconic products in 2021. These include Oplight lamp by Jasper Morrison, il Allure O ‘board and Flair O ‘chair by Monica Armani, la Moonsetter lamp by Anne Boysen and the Thea kitchen by Antonio Citterio. The group it was also awarded more than 100 million euros in projects In the context of high-end contract in the restaurant, residential, commercial and retail sectors, includingBulgari hotel and Bourse de Commerce in Paris.

Daniel Lalonde, CEO of Design Holding, said: “Design Holding’s performance in 2021 demonstrates the quality of our brands and the validity of our strategic approach. The acquisition of Designers Company, an important Scandinavian design group, is another part of our growth and represents a perfect match for us, the company’s products are extremely complementary to Design Holding’s existing portfolio, as well as adding additional competencies, including accessories. ” And Lalonde added: “Looking to the future, our goal is clear: to be the largest group in the world in the high-end design sector with an unrivaled portfolio of complementary iconic brands and a multi-channel approach to designers / architects and consumer endings. To achieve this, we pursue a strategy based on four pillars: (1) to increase the desirability of brands that make them more attractive, well-known and coveted; (2) strengthen our directly to the consumer’s path, continuous improvement of branded websites and consumer experience in stores, as well as improvement of our presence in the wholesale channel; (3) international expansion with a focus on China and North America; (4) development of high-end business contract, through the collaboration between our brands in the hotel, residential, business and retail sectors. This ambitious program will be supported by a constant focus on sustainability and ongoing investment in the staff of all companies in the Group. I am confident and excited about the opportunities I see for the company in the coming months and years ”.

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