Duba-B8 A/S is a clear market leader after the merger of two growth companies

Two leading companies in the competitive Danish office furniture industry have agreed to join forces. Duba Møbelindustri and System B8 møbler have decided to merge the two companies. The new company name is Duba-B8 A/S. The company will have a total turnover in 2005 of approximately DKK 250 million and employs just over 200 people. With a market share of around 20 %, Duba-B8 is easily the biggest player on the office furniture market in Denmark.

“This is a merger of two healthy companies with turnover growth and profit on the bottom line,” says Christian Vindstrup, who has been appointed Managing Director of the new flagship of the office furniture industry.

“Both Duba and System B8 have, in recent years, adapted to the highly competitive market by enhancing efficiency and developing products. There is overcapacity in the market, but Duba-B8 has a strong position in the upper segment of the market because both companies have invested in quality products with good design. We are almost the same size and we are similar in respect of quality, customer focus and corporate culture. We are a good match, and we want to create growth together and realise a number of synergies that will make the new company even stronger,” says Christian Vindstrup.

Greater competitiveness
“Among other things, we want to coordinate a number of functions in sales, product development, purchasing and logistics. There will also be synergies in production with a higher volume. This gives us a good basis for increasing our competitiveness in relation to foreign producers, among others, who are increasingly involved on the Danish market.”

Increased exports
Manager Mogens Wassmann stresses that the companies also fit together well geographically: “Duba is strong in the metropolitan area. B8 has its strength in Western Denmark and has also built up a good position in Norway. With one common sales force we can grow on all these markets. Part of our strategy is also to reinforce the network of distributors in both Norway and Sweden. Exports currently account for around 15 % of the company’s turnover. This proportion must increase,” says Mogens Wassmann.

“Both Duba and B8 have, for a number of years, seen the need for consolidation in the office furniture industry. In the difficult years in the industry since 2001, we have both been able to reinforce our market positions in both the private and public sectors. We now count a number of the biggest Danish companies among our regular customers, and the contract with DR Ørestaden is the biggest single order from the public sector for several years. We are certain that the merged company will have the strength to service the market even better in the future,” says Mogens Wassmann.

Same owners
The two companies’ current owners stay on as the owners of Duba-B8. From System B8 they are Niels Due Jensen and Grundfos. From Duba they are Sonnich Fryland, Mogens Wassmann and Hans-Henrik Kjer.

The management of Duba-B8 will consist of Managing Director Christian Vindstrup and Manager Nils Knudsen, both from B8, and Manager Mogens Wassmann and Manager Hans-Henrik Kjer from Duba. Mogens Wassmann, who is 63 and has managed Duba for more than 20 years, is responsible for business development and for integrating the two companies. When the integration of Duba and B8 has been completed, Mogens Wassmann plans to leave the management and continue his link to the company via work on the Board of Directors.

The other members of the management of System B8 and Duba continue in executive positions in the new organisation.

The first Chairman of the Board of Directors is Niels Due Jensen.

For further information, please contact:
Managing Director Christian Vindstrup, Duba-B8 A/S, on mobile no. +45 20 28 30 44.
Manager Mogens Wassmann, Duba-B8 A/S, on mobile no. +45 40 68 02 50.
Read more about Duba-B8 at www.dubab8.dk.

About Duba-B8 A/S
Two of Denmark’s best-established office furniture companies are now creating the leading player in the industry. Both companies have decades of experience of the production and sale of office furniture. Both companies supply products with high design content and both specialise in the total design of modern offices with the focus on quality and functionality.

System B8 was founded by brothers Martin and Kristian Bach, who purchased Bjerringbro Savværk in 1914. B8 has its head office and production facilities in Bjerringbro and sales offices in Copenhagen and Oslo. In 2004, System B8 had a turnover of DKK 138 million and has 110 employees.

Duba was founded in Copenhagen in 1922 and produced bicycle parts for very many years. In 1960, Duba began producing office furniture. The company has its administrative head office in Copenhagen and production facilities in Nykøbing Falster. In 2004/5, Duba had a turnover of DKK 125 million and 110 employees.