Fiskars - Company Announcement

Fiskars acquires Royal Copenhagen, creating a consolidated portfolio of leading Scandinavian design brands

Fiskars Corp.       Stock Exchange Release   December 12, 2012 at 10:00 EET

Fiskars is accelerating the international expansion of its Home business by
acquiring the renowned Danish premium porcelain company, Royal Copenhagen.  The
acquisition enables Fiskars to consolidate a unique portfolio of leading
Scandinavian dining brands, as Royal Copenhagen's strong heritage in
hand-painted dinner service ranges complements Fiskars' highly respected
brands, Iittala, Rörstrand and Arabia. In addition to boosting Fiskars within
the Nordic countries, the acquisition will further strengthen Fiskars' position
in Asia, where Royal Copenhagen ranks among the leading brands selling premium
dining products. 

Fiskars has today signed a definitive agreement to acquire 100 % of the shares
in Royal Copenhagen A/S and Royal Scandinavian Modern KK Japan from Royal
Scandinavia A/S, whose controlling parent company is the Danish private equity
group, Axcel. The total consideration payable (debt-free enterprise value) for
the shares is DKK 490 million, equaling approximately EUR 66 million, less net
debt and working capital adjustments as per closing of the transaction. The
transaction will be financed using Fiskars' existing credit programs and the
transaction is expected to be completed in Q1 2013. 

Upon completion of the transaction, Royal Copenhagen will become a part of
Fiskars' Home business area. In 2011, Royal Copenhagen's reported net sales
were DKK 492.3 million (EUR 66 million), its EBIT were DKK 38.7 million (EUR 5
million) and its balance sheet total was DKK 409.4 million (EUR 55 million).
The acquisition is expected to have a positive effect on Fiskars Group's EBIT
from 2013 onwards. 

 “I am proud to welcome Royal Copenhagen to our portfolio of esteemed brands,
renowned for their quality, design, longevity and rich heritages. Fiskars'
ambition in the Home business is to become a globally leading consumer goods
company in Scandinavian design, and we are excited to bring together a unique
dining offering consisting of Royal Copenhagen's Danish hand-painted dining,
Rörstrand's elegant Swedish dining, Arabia's Finnish homey dining, and
Iittala's contemporary design. Along with its world-class craftsmanship, Royal
Copenhagen brings to Fiskars 30 years of valuable experience of operating in
Asia, which will support our growth strategy outside the Nordic markets,” said
Kari Kauniskangas, President and CEO of Fiskars. 

“I look forward to building a successful future for Royal Copenhagen as a part
of a strong family of highly regarded brands. In Fiskars, we will get an
international and financially strong owner with its own deep roots in the
Nordic design tradition - and respect for unique design traditions that are
more than 360 years old. In other words, we will get an owner with both the
experience and the capital to continue the very healthy development process and
international expansion that Royal Copenhagen has already started”, says Mads
Ryder, CEO of Royal Copenhagen. 

Scandinavian brand leader in hand-painted porcelain

Royal Copenhagen was founded in 1775 by the Danish Royal Family when the first
porcelain dinner service was created. Since then, Royal Copenhagen has
manufactured products that combine respect for tradition, innovation and
world-class design and have been internationally renowned for their superior
craftsmanship. Among Royal Copenhagen's most famous and most exclusive dinner
service ranges are Flora Danica, the best-selling, mussel-decorated Mega range
and the colorful new Elements range. 

In recent years, Royal Copenhagen has successfully implemented a turnaround
strategy, reorganizing its product range and focusing on expanding its
classical sets while developing new sets that appeal to a broader consumer
base. The company has also introduced a number of improvements in its supply
chain management, including establishing a manufacturing unit in Thailand. 

Today, Royal Copenhagen is the Scandinavian brand leader in hand-painted
porcelain and ranks among the leading brands in Japan. The company is
headquartered in Glostrup, Denmark and employs a total of 650 people located in
Denmark, Japan, Thailand, and elsewhere. There are 12 Royal Copenhagen stores
in Denmark, Japan and Korea, as well as outlets and 117 shops-in-shops in
Denmark, Japan, Korea, Taiwan, Germany and USA. The company has production
facilities in Denmark and Thailand. 

www.royalcopenhagen.com



FISKARS CORPORATION

Kari Kauniskangas
President and CEO


Further information:

President and CEO Kari Kauniskangas, Fiskars, tel. +358 204 39 5500
Teemu Kangas-Kärki, President, Fiskars Home, tel. +358 204 39 5703
CEO Mads Ryder, Royal Copenhagen, tel. + 45 38 14 91 92


News conference:
An analyst and press conference will be held on Wednesday, December 12, at
14:00 at Fiskars Campus, Hämeentie 135 A. Presentation material and press
images will be available at www.fiskarsgroup.com. 


Fiskars is a leading global supplier of consumer products for the home, garden
and outdoors. The group has a strong portfolio of respected international
brands, including Fiskars, Iittala and Gerber. Founded in 1649 and listed on
NASDAQ OMX Helsinki, Fiskars is Finland's oldest company. Fiskars recorded net
sales of EUR 743 million in 2011, and employs some 3,400 people in over 20
countries. www.fiskarsgroup.com

Attachments:

20121212 Royal Copenhagen_eng.pdf