Giroflex, the market leader of swivel chairs in Switzerland has entered into an agreement to join forces with the Scandinavian industry leader, Flokk. The new company becomes the number one manufacturer of office chairs and workplace seating in Europe.
Giroflex and Flokk, former known as Scandinavian Business Seating, have entered into an agreement where the latter acquire all shares in the Swiss manufacturer Giroflex with all its entities. The parties agreed not to disclose the purchase price or further details of the transaction.
As the leading Swiss manufacturer of high-quality ergonomic office chairs, Giroflex is renowned as a premium brand with an exceptionally strong position in German-speaking markets. In 2016, almost 90 per cent of Giroflex’ CHF 45.5 million (EUR 41.5 million) consolidated sales originated in Switzerland, Germany, Belgium, the Netherlands and Austria.
While Giroflex’ leadership is strong in Switzerland and solid in Germany, Flokk has a number one position in Scandinavia and northern Europe.
Joining the Flokk family expands geographical scope for Giroflex
“We are exceedingly proud to welcome Giroflex into the Flokk family. Our two companies share most of the same philosophy on product quality and design, but are not strong competitors as we mainly operate in different markets.” says Lars I. Røiri, CEO of Flokk.
“The acquisition by Flokk opens new opportunities to Giroflex. As part of a larger group we can expand our geographical scope and find new opportunities for growth. Flokk’s network and subsidiaries will provide ideal conditions to strengthen and develop the Giroflex brand internationally.” adds Dr. Frank Forster CEO of Giroflex.
The Giroflex name will continue as a separate brand in Flokk’s portfolio (as we predicted in our latest article on the acquisition of Giroflex. FS). Recently both Malmstolen, a Swedish producer of swivel chairs, and Offecct a specialist in lounge furniture, became part of the group as well. Flokk aims to continue consolidating the industry by retaining a leading position in key markets.
“Giroflex matches this strategy to a tee, and brings Flokk to the pole position so to say. Perfect for our continued growth,” says Lars I. Røiri CEO of Flokk.
The management of the two companies will now undertake a thorough assessment, to identify opportunities and arrive at the most sustainable way to organize the business going forward.
