Jøtul
Norwegian-based manufacturer of stoves in the home comfort heating market.
- Founded in 1853
- Products are distributed in more than 45 countries across Europe, North America and Asia under five brands: Jøtul, Scan, Atra, Ild, and Ravelli
Acquired:
February 28, 2018
Transaction Type:
Special Situation
Industry:
Building Products
Headquarters:
Fredrikstad,Norway
Source:
Competitive Auction Process
Status:
Owned
Transaction Highlights
Sourced through Nordic investment bank relationships. Originally positioned as a secondary opportunity (Ratos), OpenGate identified several operational and financial aspects that formed an operational improvement thesis.
Investment Merits:
- Leading Market Position: Norway, France and USA
- Significant Investments Made in R&D: Compliance with pending wood heating regulations
- Differentiated Portfolio of High-Quality Products
- Create Value Through Add-ons: Industry ripe for consolidation that may complement Jøtul’s geographical and product reach (natural gas, pellets)
Value Creation
- Relocate manufacturing activities from Scandinavia to a lower-cost country, leaving R&D and innovation centers both in Denmark and Norway
- Expand product offering with pellet fuel products (AICO) and potentially strengthen natural gas capabilities in North America
- Drive top-line growth, including cross-selling between Jøtul and AICO (Jøtul branded pellet stoves made by AICO)
- Roll-out franchise concept stores in France started in 2021
