Axcel and JYSK enter into partnership on IDdesign

JYSK is set to acquire a majority shareholding in the IDdesign group, while Axcel will retain asignificant ownership interest. The partnership marks the start of a new phase of development forIDdesign.

With total revenue of DKK 1.6 billion, IDdesign is Denmark's leading home furnishing chain, trading under the names IDEmøbler and ILVA in Scandinavia, and IDdesign in countries in the Middle East, among others.

"We're very proud to be able to acquire a stake in IDdesign, which will continue to be run as an

independent company with three brands," says Lars Larsen, owner of JYSK. ?IDdesign is a key

player in the Danish furniture market and has achieved significant earnings improvement in recent years under the leadership of Michael Christiansen. IDEmøbler and ILVA are both solid brands that appeal to the broad swath of the population willing to pay a reasonable price for modern design and good quality. In addition, the stores in the Middle East open up an exciting franchise concept."

Michael Christiansen, CEO of IDdesign, is delighted that the company will now be owned by JYSK and Axcel in partnership: ?Axcel has been an excellent source of support for IDdesign, helping us to achieve equilibrium in the business in very challenging market conditions. I'm sure that the partnership with JYSK will be to the benefit of both customers and employees."

In concrete terms, the collaboration between Axcel and JYSK means that JYSK will acquire 80% of IDdesign, while Axcel retains an ownership interest of 20%.

"We've owned IDEmøbler since 2007, adding ILVA in 2009," says Christian Frigast, Managing Partner at Axcel. "It's been a challenging journey, because the furniture market unexpectedly contracted by more than 20% on top of the financial crisis and is yet to recover. This is why we have put a lot of energy into streamlining the business and simultaneously maintaining sales. The business moved back into the black in mid-2011, largely thanks to the sustained effort of management and employees.

"IDdesign is now a lean company with a potential that we look forward to working with JYSK to realise," he finishes.

The acquisition is subject to the approval of the competition authorities.

About Axcel:

Axcel was founded in 1994 and focuses on medium-sized companies in Denmark and Sweden. Axcel has raised four funds with total committed capital of around DKK 10 billion. Axcel's investments currently include 14 companies and a significant holding in PANDORA, representing combined revenue of more than DKK 16 billion and around 11,400 employees.

About IDdesign:

The IDdesign group is Denmark's largest and leading home furnishing retailers with around 1000 employees, 67 stores and revenue of around DKK 1.6 million. IDdesign trades under the names ILVA, IDEmøbler and IDdesign.