Verdane sells Nordic premium interior design leader Royal Design Group AB to Egmont following SEK150m to SEK 1 billion growth journey
Verdane, the Northern European specialist growth investor, will sell its majority shareholding in Royal Design Group AB to Egmont, a Denmark-based foundation whose e-commerce and media holdings support vulnerable children and young people in Denmark and Norway. Royal Design Group AB is a leading international premium design and home furnishings e-commerce company with clear market leadership in Sweden and strong market positions in the rest of the Nordics.
During Verdane’s ownership period, the company has gone from SEK150m to SEK 1 billion in turnover, acquired industry peer Rum21 and invested heavily in scalable infrastructure and processes to enable continued and scalable growth in the years ahead. The company became cashflow-positive in 2020. The realisation adds a chapter to Egmont’s already successful history of acquiring Verdane companies. Daniel Ahlstrand, Principal and responsible for the investment at Verdane, will remain as a board member throughout 2021 to ensure a smooth ownership transition.
”We at Verdane are proud of our productive collaboration with CEO Magnus Pettersson and the team at Royal Design Group, where we have been able to harness Verdane’s experience from over 30 previous e-commerce investments.
Together, we have gone from SEK 150 million to almost SEK 1 billion in turnover, established Royal Design Group as Sweden’s undisputed #1 online vendor in the premium home and interiors category and created a leading position on the remaining Nordic markets with a clear growth plan outside the Nordics. We are pleased to pass the baton to the Egmont team, which has successfully continued the development of a number of former Verdane companies,” says Daniel Ahlstrand, Principal, Verdane.
“On behalf of the Royal Design team, I want to extend my thanks to the Verdane team for their contributions to our success. It’s been great working with an investor with a deep understanding of e-commerce and a genuine knowledge of our products and the industry we operate in. We look forward to continuing our exciting growth journey together with Egmont,” says Magnus Pettersson, CEO at Royal Design Group AB.
The transaction is subject to regulatory approval by the Swedish and Norwegian competition authorities. The parties have agreed not to disclose the terms of the transaction.