In Zurich the members of the Management Board signed a contract concerning the acquisition of the Swiss company SITAG AG.
- Making foreign acquisitions is for us a way of developing Nowy Styl Group. Thanks to this acquisition we will strengthen our position in Western Europe, expand our distribution network in a huge and very demanding Swiss market, and complement the Group's portfolio with new ergonomic products – says Adam Krzanowski, the President of the Nowy Styl Group's Management Board.
- It is already our 3rd acquisition in Western Europe within the last few years. By taking over companies existing on markets which are more developed than the Polish one, Nowy Styl Group is able to learn more. Thanks to such acquisitions we can implement different innovations more quickly and minimise the risk of taking wrong business decisions. Even though local managers like emphasising the differences between their markets and the others, we know that there are lots of aspects that can be easily transferred between countries. – adds Rafał Chwast, the Vice President of the Nowy Styl Group's Management Board and Financial Director.
The acquisition is the result of negotiations and the process of obtaining additional funds which lasted several months. The whole process was carried out by Adam Krzanowski – the President of the Nowy Styl Group's Management Board and Rafał Chwast – the Vice President of the Nowy Styl Group's Management Board.
The SITAG company manufactures designer and ergonomic chairs and armchairs, and functional furniture systems for office spaces, reception areas and conference halls. The company does not supply only products, but – according to the Nowy Styl Group's philosophy – also comprehensive services concerning interior arrangement.
The SITAG company was established 50 years ago. In 1993-97 it belonged to the Furniture Group Samas. Since 2009 its controlling owner has been the Dutch investment fund NIMBUS.
SITAG, with its annual revenue amounting to 30 mln CHF, can be found in the European Top 100 Office Furniture Companies.
Thanks to the acquisition, Nowy Styl Group will enter the highly developed and very important Swiss market which, together with the German and Austrian markets, belongs to the strongest ones in Western Europe.
- Switzerland has a very demanding market. The international corporations expect comprehensive services and advanced products because they arrange their offices according to the latest technological and design trends. We are sure that the exchange of knowledge and experience between the SITAG company and Nowy Styl Group will help us respond to customers' needs more accurately and win a much bigger part of the Swiss market – says Adam Krzanowski, the President of the Management Board.
The previous acquisitions in Germany concerned companies with well-established positions in Western Europe. In 2011 Nowy Styl Group took over its first German brand ‒ Grammer Office having its headquarters in Bavaria. Next, in 2013 Nowy Styl Group acquired another German company ‒ Rohde & Grahl with its headquarters in Northern Germany. One year after the acquisition, the Rohde & Grahl company recorded an increase in sales revenue of approx. 20%, while in 2015 its revenue is forecast to increase by approx. 35%. The integration of the acquired companies into Nowy Styl Group has been a smooth process. The local production and the number of employees have remained the same, while the information, financial and marketing services have been centralised.
- The operational model of Nowy Styl Group is based on a huge integration of the processes inside the company. This helps us gain a great competitive advantage because we don't duplicate similar initiatives in other countries and we choose, in an optimal way, a place where we will perform a particular business function ‒ adds Rafał Chwast, the Vice President of the Management Board.
In a similar way we are going to deal with SITAG. The company will not only complement Nowy Styl Group with a stable brand, but also with the highly developed distribution network, modern factory in Sennwald and qualified staff. Details concerning the integration of the company into the Group will be fixed in the next months.
We are not going to offer this brand's products in Poland because of the license agreement signed by the SITAG Formy Siedzenia Sp. z o.o. company. The company is not included in the purchase transaction and will remain an independent subject.
Nowy Styl Group does not reveal the financial aspects of the acquisition.
Important information concerning the Swiss market:
- The whole chairs and office furniture market in Switzerland is worth: 500 mln CHF / 2014
- SITAG revenue: 29 mln CHF / 2014, forecast for 2015: 32 mln CHF
- Nowy Styl Group revenue: 282 mln EUR