Karelia-Upofloor and Kährs to merge

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Karelia-Upofloor Oy and Swedish company AB Gustaf Kähr ("Kährs") today announces a merger of the two companies, creating Europe's leading producer of wood floors. The new company will be market leader in Sweden, Norway, Finland and Russia, and will hold strong positions in other important markets such as England and Germany. The new company will have revenues of around 300 million euro.

"This is a strategic combination where we bring two companies together with complementary products and geographies. Together we will become a leading company within our segment in Europe and Russia", said Christer Persson, CEO Kährs.

"In a fragmented market currently characterised by uncertainty, this is a good opportunity to improve our market presence. Together, Kährs and Karelia-Upofloor are better suited to compete in a challenging market environment", said Peter Therman, CEO Karelia-Upofloor.

"It is with great satisfaction we see a merger of Kährs and Karelia-Upofloor since the industrial logic is very compelling. We are now creating a strong floor producer with exciting future prospects", says Sven-Gunnar Schough, Chairman of the Board of Directors, Kährs.

The new company will have a strong portfolio of market leading brands within wood and plastic floors such as Kährs in Sweden and Karelia and Upofloor in Finland and Russia. Together, the two companies will be able to provide their customers with a broader range of products through an increased number of complementary sales channels. Through a broadened sales network, the company will also be closer to its customers in several countries.

CEO of the new merged company will be Christer Persson who has been CEO for Kährs since 2012. He was previously a member of group management of the Swedish bed manufacturer Hilding Anders International.

Kährs' principal owner, Triton Fund III, will be majority owner in the new merged company. Karelia-Upofloor's current owner, the Finnish family-owned investment company Hartwall Capital, will be the second largest owner followed by the management.

The merger is conditional upon approval by the relevant competition authorities.

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