IDP Industria Divani e Poltrone
Milan, 4th January
Industria Divani e Poltrone (IDP) announces the disposal of 100% of the company shares, previously owned by the Chateau d’Ax group to Mr. Sergio Facotti, Italy Country Head of a group of entrepreneurs located in Europe and Middle East, which married the “IDP Project”. The formal transfer occurred on 27th December 2019 and concurrently it was announced that the Board of Directors meeting with the new shareholders will be held on 30th January 2020.
From a strategic, operational and industrial perspective, the transaction aims to create an extra-European group in the furniture sector with a leading position within its core markets and a scale granting it additional competitiveness and the possibility to expand its activity in new countries. A solid balance sheet structure along with a strong cash flow generation will allow IDP adequate financial capabilities in order to assume a central role in the context of a potential future consolidation scenario in the furniture industry.
In a competitive landscape in continuous change, the realization of economies of scale, the ability to develop an offer of design products with high added value and the business internationalization, all become crucial elements for the implementation of a proficuous development strategy fitting to a modern production company.
Moreover, the new shareholders believe that this first acquisition will open the path to strategical and operational advantages that may be achieved only through a company aggregation lead by a strong management team with a clear vision of the strategical priorities and operational models required to create value for its shareholders. Such advantages are:
– “Scale to compete”. A production group, strongly rooted in Italy to guarantee “Made in Italy” quality product with an integrated and diversified approach, speaking to a combined audience capable of producing furniture based on local clients’ needs at competitive prices allowing the penetration of highly competitive markets;
– New business opportunities. The new international dimension will form the base for the achievement of opportunities that today, given the local business dimension, may not be pursued, allowing it to invest more resources in core business areas, such as “hospitality”, “recreational” and “white label”.
– Broader collection offer. IDP will offer collections produced in Italy and abroad with an Italian design and manufacturing in order to locally compete against the overseas industry giants. Stronger ability to distribute products locally also by producing for local distributors.
– Lean and efficient organizational structure. The acquisition of IDP in Italy entails a reconsideration of the entire operational and organizational model, in order to promote a more efficient business management and the achievement of revenue and cost efficiencies. The creation of a lean operational model will facilitate a decisional process capable of responding effectively to the competitive environment in order to seize business opportunities.
– “Driving the change”. The new business dimension along with an extra-European presence will determine benefits for all stakeholders due to an increased contractual power and the advantage deriving from being “first mover” in context of market consolidation.
IDP Industria Divani e Poltrone was founded in 1981 with the idea of bringing in foreign markets the well-renowned Made in Italy leather products. In partnership with historical Italian tanneries, IDP brought to the market the most exclusive leathers becoming one of the most recognized Italian brands for the quality of its products. The historical evolution and the interest in following as well as proposing new trends, lead IDP to expand its production with collections of fabric sofas and armchairs.
A special thank to the Colombo family, owner of the Chateau d’Ax group, for the dedication and effort displayed as former shareholder of the company and in the long-term trust placed in the Manager Mr. Luigi Fumagalli.