HELSINKI (Reuters) - Finnish home and garden products company Fiskars FIS1V.HE said it was buying china and glass maker WWRD for $437 million to put more focus on luxury brands and boost growth in the United States.
WWRD, which manufactures under brands such as Wedgwood, Waterford and Royal Doulton, is currently owned by U.S. private equity firm KPS Capital Partners and has sales of $432 million, about half of Fiskars’ annual revenue.
New York-based KPS acquired the brands in 2009 following the collapse of their former parent company,
Fiskars, best-known for its scissors and garden tools, has in recent years acquired Nordic kitchenware makers Iittala and Royal Copenhagen
It had been expected to pursue new deals after it divested some financial assets last year that also prompted a special dividend.
Shares in the company rose 5.2 percent by 0911 GMT (5.11 a.m. EDT).
“The purchase price of 13 times per EBIT looks sensible to me. That’s the same valuation level that Fiskars itself has,” said Nordea analyst Rauli Juva.
“Fiskars seems to think they will benefit from a wider, more global brand portfolio.”
The deal was expected to close at the beginning of July.
Reporting by Jussi Rosendahl and Anna Ercanbrack; Editing by Mark Potter and Keith Weir