Slovenian appliance producer Gorenje agreed to sell its kitchen furniture businesses, Gorenje Kuhinje and Gorenje Notranja oprema, to global private investment firm CoBe Capital.
Gorenje said the manufacturing operations in Maribor, Velenje, and Nazarje will continue under the new owner. Gorenje will also continue selling kitchen furniture produced by the companies under the new owner.
Gorenje Group said disposal of the furniture companies will improve its profitability and free cash flow.
Gorenje's furniture segment has been operating at a loss for four consecutive years, after being severely hit by the economic crisis.
"In CoBe Capital, we found a partner that will provide further development of furniture manufacturing in Slovenia and maintain the jobs," said Gorenje President and CEO Franjo Bobinac. "Gorenje will contribute in this respect as we will keep kitchen furniture in our offer of home products in the region, especially since there are synergy effects to be reaped from combining them with home appliance sales."
CoBe Capital is a global private investment firm that specializes in acquiring and non-core and underperforming business units in the Americas and Europe. CoBe acquired a German premium kitchen furniture producer, Warendorf, last year. This year it acquired Austrian hardwood kitchen manufacturer Kornmueller. The acquisition of 100% ownership share in the companies Gorenje Kuhinje and Gorenje Notranja oprema represent CoBe's first investment in Slovenia
Gorenje Kuhinje and Gorenje Notranja oprema manufacture kitchens and other furniture at plants in Maribor, Velenje, and Nazarje. The two companies together have almost 400 employees.
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