Kährs International Inc. (Nybro, Sweden) announced Monday it intends to merge with Karelia-Upofloor (Kuopio, Finland) pending approval from antitrust regulators.
Kährs International Inc. (Nybro, Sweden) announced Monday it intends to merge with Karelia-Upofloor (Kuopio, Finland) pending approval from antitrust regulators.
Kährs makes wood flooring exclusively while Karelia-Upofloor makes wood flooring as well as resilient flooring. The new company anticipates being a market leader in Sweden, Norway, Finland and Russia, along with holding strong positions in England and Germany. It anticipates annual revenues of about $390 million.
"This is a strategic combination where we bring two companies together with complementary products and geographies. Together we will become a leading company within our segment in Europe and Russia," said Kährs CEO Christer Persson, who will be CEO of the new company.
Kährs' principal owner, Triton Fund III, will be majority owner of the new company, while Karelia-Upofloor's current owner, the Finnish family-owned investment company Hartwall Capital, will be the second largest owner, followed by the management.