The VELUX Group acquires Vitral, which successfully sells roof hatches and roof glazing systems in Denmark and England. The company has 60 employees. Sales offices are located in Denmark and England, production is concentrated in Lithuania. With the recent acquisitions of JET-Group and Vitral, the VELUX Group is strengthening its position in the commercial market. The company employs 1,100 employees from 13 countries.
The Vitral brand produces flexible roof hatch systems and roof lighting systems for the commercial market, for which VELUX launched the VELUX modular roof hatch system (VMS) in 2012. VMS construction is a modular glazing system for buildings in the commercial real estate segment - offices, schools, medical institutions, shopping centers and retail stores, large public and industrial buildings.
“Vitral manufactures roof hatch and roof glazing systems to complement our modular VMS solution. Today Vitral is active in Denmark and England, where we will strengthen our market position. In the long term, we look forward to increasing sales of Vitral products in several markets In addition, Vitral has interesting flat roof solutions for residential buildings, where we also see potential. We are proud that Vitral, created by our founder, has now become part of the VELUX Group , - David Briggs, CEO of VELUX Group
Vitral was founded in 1956 by Willum Kann Rasmussen, who was also the founding father of VELUX. VKR Holding is named after him. In 2005, VKR Holding sold Vitral to a group of investors. At that time Vitral was a small independent company that was not active enough in the market to be economically profitable or to enter into an independent company, so VKR Holding was not suitable for the role of its owner.
The release of VMS in 2012 and the recent acquisition of the JET-Group have strengthened the position of the VELUX Group in the commercial market. In addition, since 2005, Vitral has created new, worthy solutions and made its products more competitive, so that the company fits perfectly into the new strategy of the VELUX Group in the commercial real estate market.
“I am delighted that VELUX will become the owner of Vitral. We have completely renewed our product portfolio since 2005. In my opinion, the modern Vitral products are well suited for VELUX VMS products for both pitched roofs and flat roofs. Vitral will have a much more powerful foundation for development - Jens Borelli-Chiar, managing director and owner of Vitral.
Jens Borelli-Chiar will support Vitra until the completion of the transaction, after which he will provide consulting support until the company is integrated into the VELUX VMS organization.
"Vitral is an important part of our development strategy to help us become a market leader in glazed roofing solutions in the commercial real estate sector. Vitral complements VMS and JET solutions well. In addition, we will continue to invest in transactions and our own internal growth in market where we see significant potential for development "- David Briggs, CEO of VELUX Group.
The VELUX group of companies will acquire the JET-Group
The agreement for the transfer of the JET-Group from the Danish investment company Egeria to the VELUX Group must be approved by the German and Austrian competition authorities.
VELUX A / S and the Danish investment company Egeria have agreed to sell the JET-Group to the VELUX group. The decision to acquire JET-GROUP, the European leader in roof glazing systems for industrial buildings, is in line with the growth strategy of the VELUX group of companies, and, in particular, the desire to develop its production of natural lighting systems in the market for office buildings and industrial buildings. The acquisition of the JET-Group is the second VELUX Group deal this year following the purchase of Wasco Products Inc., a US-based skylight manufacturer, which was announced in April.
VELUX has been a leader in the residential roof window market for over 75 years. The VELUX Group's first foray into the commercial (non-residential) market took place in 2012 when the company launched the VELUX Modular Skylight (VMS) large area glazing product. Today the company's strategy is to develop leadership in this business segment through the natural growth of the company and the acquisition of property.
“We had a very positive dialogue with Egeria and JET-Group. We immediately felt that the goals and corporate culture of JET-Group and ours perfectly complemented each other. With the acquisition of JET-Group, we will strengthen our position in the commercial market in several countries and add several new product categories to our offer for the European market, - David Briggs, CEO of VELUX Group.
The commercial market for glazing solutions consists of two main segments:
- An architectural segment that focuses more on design, and architects play a significant role in the selection of glazing solutions - solutions can be either glass or acrylic;
- An industrial segment for flat roofs, consisting almost entirely of acrylic solutions such as domes and ribbon lanterns (CRL).
These two segments differ significantly in their target groups and sales processes. VELUX VMS has a strong presence in the architectural glazing segment, while JET is the market leader in the flat roof segment for industrial buildings.
“We look forward to becoming part of the VELUX Group, and we see great growth potential and an opportunity to strengthen our European business for the benefit of our customers and employees,” comments Ralph Dahmer, CEO of the JET-Group. Mark Wetzels, Partner at Egeria, is also delighted with the deal: "I was impressed by the VELUX Group and I am convinced that this deal will have a positive impact on both companies and their employees, as well as the entire market segment."
“With the acquisition of the JET-Group, we immediately become one of the leading players in the commercial market in Europe and will begin to combine our work with VELUX Modular Skylight products with the JET-Group to create a new business unit that will drive further growth in this market. see opportunities for the development of JET's business through the sale of certain products through the VELUX distribution network, which in turn will have a beneficial effect on the development of our dealers' business. VELUX has always been focused on providing daylight and fresh air to create more comfortable living and office environments, and the acquisition of JET helps us to gain momentum and develop our business in an entirely new market segment. David Briggs, CEO of VELUX Grou.
The deal must be approved by the German and Austrian competition authorities before it can be carried out. The companies will not disclose more details about the agreement until the final approval of the deal.
Pending approval of the deal and subject to completion, JET-Group products will continue to be marketed under the JET brand through the existing organization, while VELUX will continue to sell VMS products until customers become accustomed to the brand change and a planned transition to the VELUX brand will be possible and the market will be informed about it. The synergies are expected to be particularly noticeable in the development of common functional units and in the work with key customers, which will form the basis of the new sales department of VELUX.
VELUX was supported in the transaction by EY Corporate Finance and Dentons, while Houlihan Lokey and Allen & Overy acted as consultants to Egeria.
About the VELUX group of companies
For over 75 years, the VELUX group has been creating the best living conditions for people around the world; making the most of daylight and fresh air with a roof structure. We operate worldwide in the residential real estate market - we have sales offices and manufacturing facilities in more than 40 countries and about 10,200 employees worldwide.
Since 2012, VELUX designs, manufactures and markets turnkey glazing systems for commercial buildings and structures - VELUX Modular Skylights. Today the sales department employs 270 people, sales offices are located in 11 countries, and production is concentrated in Denmark and the USA.
The VELUX Group is part of the closed joint stock company VKR Holding A / S, wholly owned by THE VELUX FOUNDATIONS and the family. In 2017, the total revenue of VKR Holding was 2.5 billion euros, and VELUX foundations donated 168 million euros to support charity. For more information visit www.velux.com.
About Egeria
Egeria is an independent Dutch investment company founded in 1997. Egeria invests in thriving companies worth between 50 and 350 million euros. Egeria Funds invest in 11 companies such as Dutch Bakery, Clondalkin, Dynniq, Ilionx, Trust, HITEC, Izico and Nooteboom. Egeria's portfolio companies have a total turnover of over 2.3 billion euros and employ around 10,000 employees. In addition to private equity, Egeria owns the long-term investment portfolio of Egeria Evergreens, which includes five companies, including the holdings Egeria Listed investments, Egeria Real Estate Investments and Egeria Real Estate Developments. For more information, visit www.egeria.nl.
About Vitral
Vitral glass panels were created by VELUX founder Kann Rasmussen. The product first appeared on the market in 1956. They were glass panels embedded in aluminum rails for ease of installation, for which a remote controlled mechanical system was developed.
In 2005, VKR Holding sold Vitral to a group of investors, including Jens Borelli-Chiara, who today is its sole owner.
Today Vitral sells roof hatch and roof glazing systems in Denmark and the UK. Production facilities are concentrated in Lithuania. The company employs 60 people.
About JET-Group
JET-Group is a leading European supplier of products designed for daylighting, ventilation systems and exhaust ventilation systems for smoke extraction and heat dissipation. The main products of the company are skylights and skylights, which are mainly used in the industrial and municipal segments.
The international company JET-group has about 800 employees. The company is headquartered in Hüllhorst, Germany. Sales offices are represented in eleven European countries, production facilities are concentrated in four countries. More information can be found at www.jet-group.com.
