Los Angeles private equity firm OpenGate Capital has agreed to acquire Jøtul Group, a Norway-based manufacturer of stoves and fireplaces, from Ratos AB, according to OpenGate.
Jøtul, founded in 1853, makes cast iron and metal sheet stoves, inserts and fireplaces fueled by wood, gas and pellets for the residential market, and sells its appliances in 45 countries in Europe, North American and Asia. The company manufactures in Norway, Denmark, France and the United States.
To help fund the transaction, OpenGate raised a senior secured bond with Nordic institutional investors, according to Fabien Marcantetti, an OpenGate managing director who led the deal for OpenGate from his Paris location. Financial terms have not been disclosed.
Jøtul has a solid market position and globally recognized brand, which makes it attractive in a fragment market, OpenGate said.
“Jøtul is located in the Nordic region, a market that OpenGate is very familiar with having acquired Kotka Mills in Finland and where we created tremendous success during our pre-fund investment days,” said Andrew Nikou, founder and chief executive of OpenGate. “Through diligence we have already identified operational levers and accretive M&A opportunities that we believe will drive growth and ultimately create a stronger, healthier business.”
Pending meeting certain conditions, the acquisition is set to close by the end of February. Once closed, Jøtul will be the eighth acquisition through OpenGate Capital’s first institutional fund.