Information on the Target

Imagon Group, a family-owned company based in Kajaani, Finland, specializes in the production of illuminated signs and interior environment products. Established in 1988, the company has expanded to include four subsidiaries located in Finland, Sweden, Norway, and Estonia, employing around one hundred people. Imagon's brand can be seen prominently in urban areas across Finland, including major public spaces, as well as in cities throughout the Nordic region.

Imagon is undergoing a generational transition with the assistance of Juuri Partners, a private equity firm. Through this partnership, Juuri Partners will become a minority stakeholder in Imagon Group, allowing founder Arto Okkonen to step back from operational roles while ensuring the company remains under the control of the Okkonen family and the current management team, including Chairman Mika Okkonen, Production Director Mikko Okkonen, CEO Marko Mäkitalo, and CFO Samuli Heikkilä.

Industry Overview in Finland

The illuminated signage and interior solutions industry has seen significant evolution over the past decade, driven by advancements in technology and sustainability. Traditional neon signs have largely been replaced by energy-efficient and reliable LED lights, aligning with broader environmental trends and consumer preferences for eco-friendly options.

In Finland, the presence of family-owned businesses is substantial, playing a crucial role in the national economy. However, the transition to the next generation often presents financial challenges, with many owners seeking innovative funding solutions for succession. The market is receptive to partnerships that offer strategic and financial backing, which are vital for sustaining these enterprises' operations.

Imagon has capitalized on the growing demand for illuminating signage and interior solutions, making significant strides in neighboring countries. In 2018, the company reported a revenue of 21 million euros, with a notable portion derived from operations outside of Finland. Since that time, it has aggressively pursued growth in the Nordic markets, particularly focusing on Sweden and Norway, where its subsidiaries have demonstrated remarkable 60% revenue growth over the past year and a half.

The Rationale Behind the Deal

The partnership with Juuri Partners is expected to facilitate a smooth generational transition while solidifying Imagon's strategic direction. CEO Marko Mäkitalo emphasized that this collaboration will provide both strategic and financial support for the company's ambitions to achieve market leadership in the Nordic region within the illuminated signage sector.

This investment is crucial as it enables Imagon to leverage additional resources for expansive growth, particularly focusing on increasing revenue streams from various Nordic markets while potentially exploring further expansion opportunities across Northern Europe.

Information About the Investor

Juuri Partners Oy is a Finnish private equity firm that provides funding for established and profitable small to medium-sized enterprises within Finland. The firm manages Juuri Rahasto I Ky, which has a portfolio of approximately 80 million euros and is supported by prominent institutional investors in Finland.

Unlike traditional investment models, Juuri Partners combines active minority ownership with business support and debt financing. This unique approach offers a new dimension to business funding, designed to assist companies in overcoming the financial complexities associated with generational transitions and facilitating growth-oriented projects.

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The investment in Imagon Group by Juuri Partners represents a strategic alignment in a sector poised for growth. Given the company's strong track record, consistent revenue growth, and ambitious scaling goals, this partnership lays a solid foundation for future success. With the illuminated signage sector actively evolving towards sustainable solutions, Imagon's commitment to innovation will serve as a competitive advantage.

The ongoing trend towards digital and energy-efficient signage solutions further enhances Imagon's market position, and the backing from Juuri Partners will enable it to capitalize on these trends more effectively. The operational handover within the company is structured to ensure continuity, preserving institutional knowledge while welcoming fresh strategic insights from Juuri Partners.

As Imagon aims for market leadership in the Nordic countries and potentially beyond, this partnership is strategically sound and has the potential to yield favorable returns. The emphasis on ecological materials and innovative solutions aligns well with contemporary market demands, making this investment a prudent decision for both parties.

In conclusion, this generational transition, facilitated by Juuri Partners, could very well be the catalyst for Imagon to double its revenue within five years, while reinforcing its competitive stance in the illuminated signage market.

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