In this pitch deck, analysts Oscar Persson and Erik Månsson present a comprehensive
buyout consideration of Embellence Group, a leading Nordic House of Brands within
premium wallpaper, textiles, and rugs. With a strong brand portfolio and a clear pathway
to margin expansion through Direct-To-Consumer incentives, the company stands as an
interesting buyout candidate. Using a multi-method valuation framework, including DCF,
trading comparables, precedent transactions, and a LBO analysis, the analysts estimate
Embellence Group’s enterprise value to be in the range of approximately SEK 781 – 2,305m.
Key Takeaways
● Embellence Group owns a unique collection of category-leading brands such as Borås-
tapeter, Cole & Son, and Wall&decò, all within the luxury segments, which enables sustained
premium pricing and high gross margins. Together with a well-diversified brand architecture,
cannibalization is minimized and resilient demand across cycles is protected.
● The ongoing shift toward DTC channels materially improves gross margins by capturing
the full retail price, reducing inventory risk through print-on-demand, and strengthening customer
data ownership. DTC penetration is expected to lift group gross margins toward above
62%, transforming Embellence into a more scalable and capital-efficient business
● With high cash conversion, modest capex requirements, and net debt of only 0.7x EBITDA,
Embellence Group has significant balance sheet capacity. A LBO analysis indicates an IRR
of 23.8% IRR, supported by rapid deleveraging and multiple expansion, making the Company
highly attractive to both strategic buyers and financial sponsors.