Earlier this month, Re / code reported that designer portal Fab was considering a European furniture site to expand further into building its own stock and away from reselling others, and Today comes the news of the deal: he is buying One Nordic Furniture, based in Helsinki, Finland, for an eight-figure price.
The company is known in some northern circles, apparently as “the luxury Ikea”.
We had actually heard last week that One Nordic was the company Fab was looking to buy, and while trying to find a second source, and it looks like the deal was done – barely “minutes” ago, according to a spokesperson (note to self: maybe secondary sources are overestimated?). The exact price is unknown, except that it is in the “tens of millions of dollars”. As part of the transaction, One Nordic will become a 5% shareholder of Fab.
To date, Fab has raised $ 336.3 million with a valuation in its last big round of around $ 1 billion, but the company has stumbled into its business model and even faced speculation that it is on the verge of going out of business entirely this year (which she denied). This has led him to seek out opportunities that prevent him from reselling other companies’ products and dealing with the expense, complications and logistics associated with it.
In Europe, this change has led Fab to sell its own products.
One Nordic has operations in Helsinki, Finland and Stockholm, Sweden, and has built an interesting business combining offline and online commerce: while all the furniture it sells (and designs and manufactures it) even) are sold online, those who are interested in purchasing it can click on links to find the locations where it is installed so that they can see what it looks like in real life. They may not be shops but public places like hotels.
Although it offers a relatively large amount of product, the selection is much smaller and much simpler than the nut soup approach that Fab has developed. The focus for One Nordic is on wood and metal furniture like chairs and tables, cushions, lamps, artwork and shelves.
“We are pleased to announce a founding partnership for Fab: the acquisition of One Nordic Furniture Company of Helsinki, Finland and Stockholm, Sweden,” the company said in a statement. Long cherished by the Nordic design community, One Nordic brings expertise in the design and manufacture of innovative furniture and experience in selling furniture online to the global team of experts in design, retail and marketing. by Fab.
âThe acquisition stems from a long-term strategic plan that we developed last fall. We have had great success in our recent private label initiatives and custom furniture launches; our acquisition of One Nordic is the next step in the pursuit of this market-proven plan.
Meanwhile, Goldberg places this as part of the company’s larger emphasis on design:
âDesign has been at the center of Fab since day one. Teaming up with One Nordic adds incredible talent to our design bench and brings us ever closer to our suppliers and manufacturers. We are excited about the upcoming design collaboration.
This is not Fab’s first step in manufacturing its own products. It is the continuation of a process that began at the beginning of this year when he ended several of his operations across Europe to focus on original furniture.
âLike the Fab you’ve known in the past, the new Fab focuses on delivering great design to our customers,â the company wrote at the time. âWe are moving our business to the EU to focus solely on growing our popular range of bespoke furniture. This means that our customers in the EU will have access to affordable, high-quality and bespoke furniture at their fingertips. You can configure our shelving, table and seating systems online to create quality furniture that perfectly meets your needs. You choose the dimensions, the color and the materials, and our qualified cabinetmakers will make your furniture and transform your creations into a happy reality.
This strategy was also confirmed in the company’s acquisitions, such as the purchase of the French furniture retailer MyFab.
For One Nordic, CEO Joel Roos describes the deal as an opportunity for the company to sell its products to a wider audience.
âWe have been dedicated to designing high quality furniture and accessories that deliver a Nordic sensibility, updated for the 21st century. Now our partnership with Fab provides a new platform to share our work with people around the world. “
This is a very strong indication that while producing his own design stock started as a European strategy for Fab, he intends to expand it globally.