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Innova portfolio company Profim joins Norwegian Flokk Group

Innova Capital’s portfolio company Profim, a Polish manufacturer of office chairs, is to join the Norwegian Flokk Group, which owns a host of office furnishing brands. As a result of this transaction, Innova will become Flokk’s largest minority shareholder.

“Flokk’s ambition is to become one of the leading European players in the office furniture market. After Profim joins the Group, our position in our key markets will be even stronger”, says Lars I Røiri, CEO of Flokk. Triton Partners, its major owner to-date, will continue to be Flokk’s majority shareholder. The parties to the deal have not divulged its value. The transaction is subject to obtaining the pertinent regulatory consents.
 
“When we set the course for developing our portfolio companies, we always look for the best strategic solutions. Our overriding objective in this investment was to lend support to Profim in its bid to achieve its ambitious expansion plans of penetrating the most promising export markets. Its addition to the Flokk Group will deliver synergies, and accelerate the growth of our business. Hand in hand with our new partners, we will continue to develop the Profim brand under the Flokk Group’s new international structure,” says Andrzej Bartos, the Senior Partner at Innova, who oversaw the deal.
 
Profim’s chief objectives call for strengthening its leadership position in the Polish office chair market, and building a strong brand in key European markets. Joining the Flokk Group will enable this Polish manufacturer to tap into its full potential, by taking advantage of international collaboration and operational synergies. Profim and the Flokk Group’s member companies will have a product offering with a complementary portfolio, while their shared distribution network will span more than 50 countries worldwide.
 
“Flokk has an excellent product range consisting of a number of strong brands; we cannot wait to become a member of its Group. We hold many values and objectives in common, such as delivering high quality furniture with a modern and inspiring appearance. Flokk’s growth in the last several years also confirms that we share the very same drive to develop incessantly, and the unwavering determination to innovate and offer attractive design,” says Piotr Chełmiński, CEO of Profim.
 
Innova Capital invested in Profim in May of last year by subscribing for nearly 75 per cent of its shares. This was another transaction linked to the founder’s succession executed by the fund in recent years. In line with its investment policy, Innova continued to collaborate with Profim’s founders to build the company’s value. Ryszard Rychlik, its former CEO, continued to be engaged in Profim’s operations in his capacity as its Supervisory Board Chairman.
 

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