Furniture of the Black Earth Region

History

2024: Angstrom bought Furniture of the Black Earth Region for hundreds of millions of rubles

In July 2024, a large furniture manufacturer Angstrom acquired the Chernozem Furniture factory in Voronezh. According to experts, the value of the transaction could range from ₽200 to ₽300 million.

According to Kommersant, sources on the market told about the purchase of Furniture Chernozem by Angstrom. Angstrom confirmed the fact of the transaction, noting that the enterprises are in the process of integration. The company promised to disclose other details of the deal by the end of the summer of 2024. The owner of "Furniture Chernozemye" Sergey Poslukhaev declined to comment.

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Freepik

Angstrom produces hull and soft furniture at five factories in the Voronezh region. According to its own data, the group has about 400 salons in more than 80 cities of Russia and six CIS countries by August 2024. Chernozemye Furniture, a former Voronezhmebel enterprise, has been producing case and soft furniture since 1966.

Against the background of a decrease in the profitability of the furniture business in Russia, large manufacturers absorb small enterprises that are less resistant to fluctuations in demand. According to market participants, there are more offers for the sale of furniture companies, as small players have a smaller margin of safety than industry leaders.

According to the Association of Furniture and Woodworking Enterprises of Russia, furniture production in monetary terms in 2022 increased by 15.2%, to ₽356,2 billion, and in 2023 increased by another 25%, to ₽445,1 billion. At the same time, in physical terms, in 2022, production decreased slightly, by 2.7%, to 51.7 million products, and in 2023 increased by 33.8%, to 67.3 million units.

Maxim Valetsky, co-founder and chairman of the board of directors of the interior company Mr.Doors, notes that there are more proposals in 2024 for the sale of furniture companies. He adds that Mr.Doors is also considering acquiring facilities, seeking to find assets that could strengthen current capacity, complement the range or substantially optimize production processes.

However, as Maxim Valetsky emphasizes, most of the offers on the market are not unique or innovative technologies.^[1]

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