Target Information

Juuri Partners Oy has divested its stake in the signage company Imagon Oy, selling its shares to entrepreneurs Mika and Mikko Okkonen. Juuri Partners had been a minority shareholder in Imagon since 2019, during which it facilitated the company’s generational transition.

The Imagon Group has been implementing a robust Nordic growth strategy for several years, supported by Juuri Partners. However, the prolonged COVID-19 pandemic has significantly altered the industry outlook.

Industry Overview

In Finland, the signage and advertising industry has faced considerable challenges due to the pandemic. Businesses have had to adapt to changing consumer behavior and an increasing reliance on digital platforms, which has affected traditional signage requirements. The market is gradually recovering as restrictions ease, with companies seeking innovative and cost-effective solutions to engage customers.

As retail spaces begin to recover from the impact of COVID-19, there is a growing focus on enhancing customer experiences in physical locations. This involves not only the use of effective signage but also integrating technology to create more interactive environments.

The Nordic region has seen a shift towards sustainable practices, with businesses increasingly prioritizing eco-friendly materials and energy-efficient solutions in their offerings. This trend is expected to continue shaping the industry landscape as companies respond to both consumer demand and regulatory pressures.

Imagon, established in Kajaani in 1988, has positioned itself as a pioneer in the signage sector, manufacturing both outdoor advertisement solutions and interior display products. With operations extending to Sweden, Norway, and Estonia, and a network of 140 local partners across Europe, Imagon's influence is notable in the regional market.

Rationale Behind the Deal

The rationale for Juuri Partners’ divestment stems from a strategic decision to refocus Imagon on its core business fundamentals in light of fundamental market changes induced by the pandemic. As business conditions become more challenging, it is crucial for companies to streamline operations and reinforce existing capabilities rather than pursuing aggressive growth.

Markus Einiö from Juuri Partners noted the importance of this strategic shift, emphasizing that returning to foundational aspects of the business will support sustainable growth in the long-term. The focus will be on enhancing existing operations and adapting to evolving market demands.

Investor Information

Juuri Partners Oy is a private equity firm that manages approximately 200 million euros in investment funds, Juuri Rahasto I Ky and Juuri Rahasto II Ky, which focus on established and profitable small and medium enterprises in Finland. The firm offers growth-oriented businesses a supportive blend of equity funding, active ownership, and business development assistance.

The firm has a team of 12 professionals and serves a diverse investor base comprising both Finnish and international institutional investors. Their expertise lies in fostering the growth and sustainability of their portfolio companies through proactive engagement and operational support.

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From an expert perspective, the divestment by Juuri Partners is a prudent move considering the current state of the signage industry in Finland. The COVID-19 pandemic has necessitated a reevaluation of growth strategies, and returning to basics while solidifying the existing business is a wise course of action.

Moreover, Imagon’s position as a long-standing player in the market, coupled with its commitment to sustainability and innovation, places it in a strong position for recovery. The firm's strategy to invest in its core competencies such as in-house production and product development is likely to yield positive outcomes.

As retail environments continue to evolve, Imagon’s focus on enhancing customer experiences and integrating new technologies reflects a forward-thinking approach. It is anticipated that these strategies will not only fortify their market position but also attract new clients as businesses increasingly value innovative solutions.

Ultimately, this strategic divestment could represent an opportunity for both Juuri Partners and Imagon, allowing them to navigate the challenges ahead while positioning themselves for future growth and stability.

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