Clearwater International advises Chilli on its sale to Bygghemma
Clearwater International has advised Chilli, a Swedish furniture retailer on its sale to e-commerce business Bygghemma.
Based in Gothenburg, the retailer operates 23 physical stores in Sweden and has a strong online presence, selling sofas, dining suites and garden furniture.
In a slow but steady retail market, Chili grew annually by 19% between 2010-2014, achieving a turnover of €33.9m (SEK 324m). In 2015, the company was acquired by e-commerce business, Bygghemma, creating one of the largest online furniture stores in the Nordics.
Despite a history of strong growth, Chili was experiencing problems with profitability, which led to Bygghemma acquiring parts of the company in 2015.
Following the acquisition, it is expected Bygghemma will reach a turnover of nearly €210m (SEK 2bn) with a positive operating margin. If achieved, Bygghemma will have increased turnover from €28.2m (SEK 270m) to €210m (SEK 2b) in three years.
Bygghemma is owned by Ax:son Johnsons investment company, Nordstjernan.