Swedish kitchen furniture group Nobia, owner of UK brand Magnet, is to strengthen its focus on its core Nordic markets as well as divesting its UK operations.
As a next step in the strategic market focus initiated in 2024, Nobia continues to consolidate around its core Nordic markets and has entered into an agreement to divest its UK operations to funds managed by Alteri Partners LLP.
The divestment sharpens Nobia’s focus on markets where the Company has strong brands, clear market positions, structurally higher margins and a production footprint centred around Nobia Park.
The transaction includes all Nobia UK legal entities including the brands Magnet, Gower, Commodore and CIE.
“We are committed to increasing the focus on our core Nordic markets, centred around the new factory, Nobia Park, Sweden, and our recognised brands with strong market positions and structurally higher margins. Therefore, we have decided to divest the UK operations, giving Nobia the best preconditions for strong profitable growth going forward”, says Kristoffer Ljungfelt, President and CEO of Nobia.
The rationale for the divestment aligns with Nobia’s strategic focus, and historical performance in its Nordic operations, which have consistently demonstrated structurally higher operating margins. By concentrating the Group around its core Nordic markets, Nobia aims to strengthen its margin profile and operational focus.
Region UK reported net sales of SEK 4,363m and an operating profit of SEK -108m on a rolling twelve-month basis as of 30 September 2025. At the time of closing, no purchase price will be due. As part of the share transaction, the Buyer assumes, besides the net assets, the obligations related to the leased retail network amounting to a gross liability of SEK 746m according to IFRS16.
The transaction may result in a consideration related to the Buyer’s future performance and successful turnaround related to the UK operations. Nobia will retain the defined benefit pension plan reported in the UK which is recognised at a net asset value of SEK 80m.
As a result of the decision to divest the UK operations, the related assets and liabilities will be reclassified as assets held for sale and the income statement of Region UK will be recognised as profit/loss from discontinued operations in Nobia’s Year-end report 2025.
The assets and liabilities will be recognised at the fair value less sale costs in the balance sheet and result in a preliminary impairment of approximately SEK 750m. The impairment is non-cash in nature and reflects an accounting remeasurement following the classification of the UK operations as asset held for sale.
The transaction is expected to be completed during the first half of 2026 and is subject to customary regulatory approvals and closing conditions.
