Flokk Group, the leading European manufacturer of office seating products, has entered into an agreement to acquire the US office seating manufacturer 9to5 Seating. Through this acquisition, Flokk expands its footprint in the US market, underpinning its international growth strategy.
Flokk is driving the consolidation of the fragmented workplace furniture industry, a journey which has taken the group from being a Scandinavian player to a European market leader with well over NOK 3.0 billion (EUR 300 million) in revenues today.
“We are very excited to have the 9to5 Seating team join us on our growth journey. 9to5 Seating is a strong fit with Flokk and has realized an impressive record of delivering high revenue growth over the past years on the back of targeted product development and superior manufacturing capabilities. 9to5 Seating has built an excellent stand-alone platform for further growth, and by leveraging Flokk’s extensive manufacturing, logistics and go-to-market know-how, we believe we can help 9to5 Seating expand further and realize its high ambitions for the future,” says Lars I. Røiri, CEO of Flokk.
Originating from a group of Scandinavian brands (HÅG, RH and RBM) with some of the industry’s most efficient manufacturing plants in Røros (Norway) and Nässjö (Sweden), Flokk is building a leading international workplace furniture group both organically and through active use of M&A. The group has previously acquired the Swedish companies Malmstolen and Offecct, the Benelux market leader BMA, the Swiss market leader Giroflex, and the Polish market leader Profim. With the acquisition of 9to5 Seating, Flokk expands its footprint in the important US market, which is by far the largest market for office seating products in the world with an annual turnover of over NOK 40 billion (USD 4.8 billion).
Founded in California in 2004, 9to5 Seating has developed into an established manufacturer of office seating products in the US market. The company has developed an ability to combine style, value and quality. It integrates extensive flexibility and customization in its product development approach to be able to meet the comprehensive seating needs of the modern office. The company has achieved above market growth over the past decade and currently generates approximately NOK 500 million (USD 55 million) in annual revenue. The company has established a nation-wide distribution network of over 1,000 dealers and employs approximately 300 employees at its manufacturing sites in Los Angeles, California, and in Guangdong, China.
“We’re delighted to join the Flokk Group, an international house of brands specializing in seating. This further strengthens 9to5 Seating’s commitment to accelerate growth and development. Our management will continue to create value for our customers, as a top priority, while enhancing employee opportunities and continuing to bring smart seating solutions to market,” says Dara Mir, CEO of 9to5 Seating. Mr. Mir will remain as the CEO and minority shareholder of the company.
“With the acquisition of 9to5 Seating, we will take another significant step towards becoming a true international powerhouse in this industry. 9to5 Seating is a well-run, fast-growing company with strong market positions which will bring substantial value to the group,” concludes Mr. Røiri.
For more information, please contact:
Lars I. Røiri, CEO, Flokk
E-mail: lars.roiri@flokk.com, mobile + 47 911 79 067