The Danish furniture industry is experiencing a wave of acquisitions as smaller companies seek stability and growth through consolidation. Within the past six months, six Danish firms have joined larger groups or attracted new, capital-rich investors. Most recently, Magnus Olesen partnered with a Belgian office furniture manufacturer, gaining access to around 400 European dealers.
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Mads Gede, chief consultant at the Danish Wood and Furniture Industry (TMI), attributes the trend to rising regulatory demands and an increasingly challenging economic environment. "There are constantly increasing requirements for compliance and documentation," he said, noting that small companies benefit from shared administrative resources when merging.
Economic pressures also play a role, with several firms struggling to maintain profitability following the COVID-19 pandemic. Notably, Top-Line reported losses of 66 million DKK over the past two years, while Magnus Olesen faced financial challenges before its partnership.
Design Concept Denmark is actively consolidating companies, including Andersen Furniture and Top-Line, to strengthen market positions amid fierce competition. Morten Bertelsen Hertz, co-owner and commercial director, compared the industry's consolidation to trends in fashion, emphasising that scale is increasingly necessary to survive.
Overall, acquisitions are viewed as a strategy not only to achieve growth but also to ensure resilience in a market marked by complex regulations and financial pressures.
Source: www.wood-supply.dk
