Yahoo Finance Poltrona Frau Corners Bespoke Auto Market With First Foreign Acquisition
MILAN — Famous for its plush chairs and couches, Tolentino-based Poltrona Frau has created luxe interiors for the best auto names in the business: Ferrari, Lamborghini, McLaren and Jaguar Land Rover among them. With its first foreign acquisition, a majority stake in the U.K.’s KJ Ryan Ltd., Poltrona Frau aims to become a leader in the bespoke luxury car business.
Poltrona Frau Interiors in Motion chief executive officer Ervino Riccobon told WWD that the acquisition is strategic and will help the business reach its goal to grow the unit’s sales in the double digits over the next few years. “We aspire to grow…but without diluting our strategic focus with regard to highly customized and bespoke interiors that require craftsmanship and knowledge of materials,” Riccobon said in an interview Friday, adding that the unit has an investment plan in play “to support both capacity increase and acquisition of technological know-how in specific process, like the ones to manufacture safety components.”
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Poltrona Frau, which is part of the Haworth Lifestyle Group galaxy of brands, announced Thursday that it reached an agreement to acquire a majority stake in the Coventry, U.K.-based KJ Ryan. The British firm is a regarded maker of high-end interior components for luxury cars. KJ Ryan will now be part of the Interiors in Motion Business Unit of Poltrona Frau.
The acquisition is key for Poltrona Frau as it marks the first acquisition in a foreign market since its founding 112 years ago. In terms of the Interiors in Motion business unit, it is the very first acquisition.
Together, the Interiors in Motion unit and KJ Ryan hope to become a European leader in the development and manufacturing of interiors for luxury and bespoke vehicles and aim to reach a projected turnover of about 120 million euros, with a combined force of more than 600 employees and three manufacturing plants across Italy and the U.K. KJ Ryan was founded by Kevin Ryan in 2007.
Poltrona Frau has been a crucial player in Italy’s transportation industry, especially since the establishment of its Interiors in Motion Business unit in the mid-’80s, Riccobon explained.
Over the years, the unit, equipped with master craftsmen and sophisticated artisanal techniques, has developed innovative leathers and other technical materials, such as high-performing fabrics. In addition they have also manufactured premium interiors for the automotive, rail transport and offshore navigation sectors.
Dario Rinero, CEO of Haworth Lifestyle, highlighted the potential of the bespoke auto interior segment.
“We believe KJ Ryan is well positioned to capitalize on continuous industry tailwind and we look forward to continuing this expansion and success story,” Rinero said in a statement. Fellow furniture and lighting brands Cappellini, Cassina, Janus et Cie, Luminaire, Ceccotti Collezioni, Karakter, Luxury Living Group, Interni and Zanotta are also part of Haworth.
In the annual Bain-Altagamma Luxury Goods Worldwide Market Study released in January of this year, the luxury car market outpaced other luxury segments due to bouyant demand, driven in part by rising demand for customized solutions.
“Sales of luxury cars, the biggest portion of the overall market, hit a new record, reaching an estimated 635 billion euros [in 2023], 12 percent more than 2022. The absolute luxury segment grew the fastest due to increased demand for ultra-customized solutions.…All brands continue to push to establish more direct relationships with their clients to enhance both the purchase and after-sales experiences,” the report said.
