BRIO has bought up the remaining half of Norwegian firm ENG (European Nursery Group), in which it already owned an existing 50 per cent.
The firm has signed an agreement to acquire the remaining fifty per cent of ENG from a group of private investors. ENG develops and markets strollers, children's car seats and other accessories under the brand names BRIO, Simo and Carena. The group has 150 employees and a sales focus on the Nordic and German markets.
Formed in 2000 when BRIO's business area for strollers and other accessories, BRIO Baby, merged with the Norwegian stroller manufacturer Simo AS, BRIO Baby was unprofitable for many years prior to the merger. ENG has since gone through a restructuring and the business has now turned the corner.
"Our future plans for BRIO build on us having control of the BRIO brand. The ENG acquisition is in line with our strategy of intensifying the focus on BRIO-branded products. The baby segment is also a very attractive market with clear growth potential," said BRIO's chairman, Daniel Sachs.
The purchase price of the fifty per cent share of ENG is 81.2million Norwegian Krona BRIO will pay NOK 46.6 million in January 2005 and the remaining part via a promissory note loan from the sellers. BRIO's principle owner Proventus will underwrite the loan. ENG will be consolidated as a wholly-owned subsidiary during Q1 2005, leading to additional net sales of around 300 million Swedish Krona next year.