KITCHENS conglomerate Nobia AB has agreed to sell Poggenpohl to private equity for 10 million euros, a price it described as “below our expectations.”

The Swedish supplier and retailer has sold the circa 100 million* euro turnover German company to investment firm Adcuram Group AG.

It follows its decision to try and find a strategic partner which it announced in May this year, saying at the time that it only wanted to countenance the sale of a minority stake in the company.

In the nine months to end September, Poggenpohl made an operating loss of 13 million Swedish kroner (1.3 mill. euros) with Nobia CEO Morten Falkenberg saying the brand brought “limited synergies to the rest of the group.”

He added: “The price is below our expectations, but nevertheless we believe that this will create shareholder value over time.”

Nobia — whose interests here include Magnet, the UK’s largest kitchens retailer — said the sale would improve Nobia’s profitability.

Poggenpohl, based at Herford, has been part of Nobia since 2000, making luxury kitchens and selling them to consumers and contract customers around the world through dealers and 36 of its own stores. It employs nearly 500 people.

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* based on nine-month sales of 749 million kroner (76.5 mill. euros)

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