Transaction Details

January 13, 2021
Stockholm

Sector

Consumer, Retail, E-commerce and Leisure

Deal Type

M&A

Deal Team

Martin Larsson, Rickard Raudsepp, Camilla Lindau

GCA Altium advises Royal Design Group on its sale to Egmont

GCA Altium has advised the shareholders of Royal Design Group, the Nordic design and home furnishings e-commerce leader, on its sale to Danish group Egmont.

Royal Design Group is a Sweden-based interior design e-commerce business and holds a leading market position within home and interior products in the Nordics and select European markets, operating under the brands RoyalDesign and Rum21. Over the past couple of years, the company has invested substantially in building scalable systems and infrastructure to create a platform for continued growth and expects to reach a turnover of almost SEK 1 bn in 2020. 

Private equity firms Verdane, which has been majority owner since 2017, and eEquity, co-owner since 2012, now hand over the ownership responsibility to Egmont, with Egmont Publishing acquiring all existing shares of Royal Design Group. The purchase considerably deepens Egmont’s position in the Nordic e-commerce market and marks a substantial investment for the Egmont Publishing division, which first started investing in e-commerce seven years ago.

“We at Verdane are proud of our productive collaboration with the team at Royal Design Group and eEquity, where we have been able to harness Verdane’s experiences from over 30 previous e-commerce investments. Together, we have gone from SEK 150 m to almost SEK 1 bn in turnover, established Royal Design Group as Sweden’s undisputed #1 online vendor in the premium home and interiors category and created a leading position in the remaining Nordic markets with a clear growth plan outside the Nordics. We are pleased to pass the baton to the Egmont team, which has successfully continued the development of a number of former Verdane companies,” said Daniel Ahlstrand, Principal of Verdane.

Magnus Wiberg, Managing Partner at eEquity, added: “We invested in Royal Design in December 2012 as the first institutional investor when the company had SEK 95 m in revenues. Now the company has revenues of almost SEK 1 bn with nice profitability. We have been very active in the investment and have played a key role in acquiring the furniture arm Rum21, built a fantastic management team, and been involved in two major projects that have played an important part in the increased profitability: a top-notch e-commerce platform and a state-of-the-art automated warehouse.”

The transaction is subject to regulatory approval by the Swedish and Norwegian competition authorities. The parties have agreed not to disclose the terms of the transaction.

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