eEquity sells part of portfolio to Verdane in its first partial exit
Verdane Capital Funds (Verdane) and eEquity are two of the leading Nordic investors in e-commerce. Through this transaction Verdane acquired 15-30% ownership stakes in four e-commerce companies in which eEquity is a shareholder. In conjunction with the transaction, the portfolio companies will also receive additional growth capital, and Verdane Capital Advisors, the investment advisor to Verdane, will gain a board seat position in each of the companies.
Verdane Capital Advisors is one of the prominent investment advisors in e-commerce and the leading advisor in portfolio transactions (i.e., secondary directs) in the Nordics. The transaction is the twentieth portfolio transaction by Verdane in ten years. Through the transaction, Verdane became a shareholder in four companies: WhiteAway, Caliroots, Parelle/Eleven and Royal Design.
eEquity is a leading Swedish investor in e-commerce of goods and services, with stakes in 11 Nordic e-commerce companies. The transaction, in which eEquity divests a portion of their holdings in the target companies, is the fund’s first exit since its inception in 2010. As a secondary direct investor in the Nordics, Verdane acts as a solution provider for owners of portfolios of unlisted assets. In this case, it was efficient for eEquity to sell several partial stakes in their portfolio at once, thereby enabling Verdane to gain access to these particular companies.
WhiteAway is the leading internet retailer of household appliances in the Nordics with an annual turnover of approximately Skr 900m. The company was founded in 2003 and is based in Aarhus, Denmark.
Caliroots is a Sweden-based internet retailer of street wear with three physical stores. Founded in 2003, the company has an annual turnover of approximately Skr 100m following its acquisition of andMotion which occurred in connection with the transaction.
Parelle/Eleven is a group of two Swedish companies that merged before the summer. The newly formed company has an annual turnover of approximately Skr 130m and sells beauty products online and in 20 franchise stores across Sweden.
Royal Design is a leading internet retailer of kitchenware, home decor and furnishings. Based in Kalmar, Sweden, the company was founded some 10 years ago and has an annual turnover of approximately Skr 150m.
“We are very happy that Verdane will be a co-owner in these companies and believe that they have a lot to add which will help us build the companies to category leaders in their respective product areas,” says Magnus Wiberg, Partner at eEquity and one of the founders of Pricerunner.
“We are very pleased that Verdane has invested in these four interesting assets and expanded Verdane’s portfolio of internet retailers to almost 20 holdings,” says Staffan Mörndal, Partner at Verdane Capital Advisors. “Thanks to our experience from working closely with e-commerce companies since 2005, we will be able to propose 100-150 improvement actions to each of these four companies. Verdane always strives to contribute more than just capital to our portfolio companies”.
For more information contact
Tel. +46 735 37 50 00
Unity Beauty Group acquires Eleven.se and strengthen its position as the Nordic challenger in beauty
Unity Beauty Group AB which since 2012 owns Parelle Cosmetics is, with its 20 stores and webshop, Sweden’s second largest beauty retailers. With the acquisition of Eleven.se, the leading online player, the group further strengthens the position.
Eleven.se has a turnover of approximately SEK 80 million and has with its 800 brands the widest range of cosmetics and fragrances in the market. Unity Beauty Group acquires all shares in the company and Eleven.se becomes sister company to Parelle Cosmetics. Sellers Michael Gegerfelt and Mikael Simonsson will become part of the management team of Unity Beauty Group, and even become partners alongside former owners eEquity AB, and the company’s founder Susanne Najafi and Alexis Priftis.
“Eleven.se is a very well run company with a strong customer base, and a fantastic addition for us. We look forward to get the absolute top expertise in e-commerce in our management team to strengthen our online venture further, “said Susanne Najafi, CEO of Unity Beauty Group.
“We see a strong match between the companies and believe that together we will be able to realize our vision of creating a new kind of quality shopping experience online and offline for customers throughout the Nordic region,” said Michael Gegerfelt.
Eleven.se was founded in 2000 by Michael Gegerfelt and is an authorized online reseller with a product range of about 25 000 items of the most popular and prestigious brands in the beauty category. Today Eleven.se the leading player online in Sweden.
Parelle founded in 1962 and is with its 20 member-owned stores and salons Sweden’s largest chain of beauty treatments, as well as the third largest chain of perfume and cosmetics, and since November 2012 also engaged in e-commerce via www.parelle.se.
eEquity is a Swedish holding company for investments in e-commerce, both in terms of physical products and services. eEquity currently has 10 portfolio companies and manages several hundred million. Magnus Wiberg co-founded Pricerunner and built the company into a leading price comparison service in Sweden and England and then sold the company to ValueClick, listed on Nasdaq. Patrik Hedelin co-founded the former boo.com where Patrick was Chairman and responsibility spirit of fundraising area.
For further information please contact.
Tel: +46 725 101 625
Footway acquires Heppo from CDon and expands assortment
Footway acquires Heppo from CDon in another step towards becoming the leading online shoe store in the Nordics. The Footway team previously built up Lensway during a 10 year period to become the leading online player within lenses with sales of half a billion SEK.
Heppo has sales amount to approximately 100 million SEK per year. After the acquisition Footway will offer their customers 17 000 different shoe models with 1-2 day delivery in the whole of the Nordics. Closing is planned to 18 of April. In relation to the acquisition there will be a new issue in Footway where current owners eEquity, Industrifonden, Rutger Arnhult amongst others will invest an additional 40 million SEK in the company. Footway today has both logistic center and head office in Kista, Stockholm.
“The acquisition will increase our assortment of shoes with 300% which creates a huge customer value. As we have logistics and customer service in-house, which our competitors don’t, we can strive for the highest possible customer satisfaction which we believe is very important especially when we now increase our assortment and sales” says Daniel Mülbach, founder Footway
“Through the acquisition of Heppo we lay the foundation for Footway to grow and become a billion revenue company within the Nordic market. We believe the online penetration of shoes sold online will increase from todays 6% to 18% which is similar to current levels in the US and continue to grow towards a 30% share over a five year period.” says Patrik Hedelin, Partner eEqutiy.
For further information Daniel Mühlbach, VD
Email: email@example.com Mobil: 070-9999343
Louise Liljedahl, Press Email: firstname.lastname@example.org Mobil: 0736-40 93 50
Royal Design accelerates growth with eEquity as new partners
Royal Design is the largest player in the nordics within online home furnishings. The company was founded in 1999 and has successfully grown profitably to more than 100 million in Sales today. Royal Design is currently growing by 100% compared to the same period last year, with sales worldwide. The product assortment consists of quality brands such as Ittala, Rörstrand, Orrefors, Georg Jensen, Swarovski. Offering more than 56,000 products from over 100 brands online and in store in Sturegallerian in Stockholm. Royal Design strives to give everyone the opportunity to buy high quality home furnishings brands at great prices and with fast delivery.
“We think that the home furnishings market is very interesting, a market that today is valued at about 45 billion in the Nordic and where online penetration is expected to increase from the current 6% to about 30% within a five year period. The strategy of online retail is unbeatable compared to regular stores in question to meet customers’ needs in terms of convenience and assortment, as an example, Cervera has 7000 items in stock, while Royal Design has 56,000 “, says Magnus Wiberg, partner eEquity.
eEquity’s investment helps to support the company in the expansion. The focus will be on building Royal Design to a market leader in its niche in each market by having the widest and best range of products, competitive prices and prompt delivery.
“We were looking for a suitable investor who could provide expertise in entrepreneurship, online marketing and e-commerce. eEquity showed great skills in these areas and also gives us access to their network of e-commerce companies, “said Hans Bengtsson.
- “We see great potential in the Royal Design where we believe that the company will become the market leader in its niche. We see that we can run the company with our expertise and lift it to a one billion company within a few years. “Says Magnus Wiberg, partner eEquity.
For more information, contact:
Tel: +46 735 37 50 00
Email: magnus.wiberg @ eequity.se
Royal Design Group AB
Tel: +46 708 20 29 65