Luminor Bank has granted children’s furniture manufacturer Ltd. Hoppekids financing in the amount of 1.3 million, which will enable the company to acquire the assets of the Danish children’s furniture manufacturer M. Schack Engel. The transaction will strengthen the company’s competitiveness in the European market and expand production in Latvia.
As part of the deal, Ltd. Hoppekids is acquiring the bankrupt company’s production equipment, inventory, and intellectual property rights. The Danish company was previously known as the manufacturer of the LIFETIME kidsrooms brand. It is planned that the manufacturing of these products will be relocated to Latvia and carried out at the Hoppekids facility in the Saldus region, thereby strengthening business activity in the local market and Latvia’s export potential.
“Hoppekids is a Latvian company that, over more than 30 years, has established competitive manufacturing capabilities and, through this transaction, continues to expand its operations and export capacity. The company’s growth potential is increasingly determined not only by its ability to maintain stability, but also by its courage to seize new opportunities for development. The European children’s furniture market is undergoing changes driven by both geopolitical events and declining birth rates in several export destinations, which is why it is even more crucial to strengthen one’s position with a well-thought-out strategy. We are pleased to provide support through financing that helps turn long-term plans into reality,” says Ilze Zoltnere, Head of the Corporate Department at Luminor Bank in Latvia.
Hoppekids’ products are primarily exported to European Union countries. In recent years, the company has also significantly expanded its online sales, adapting to changing consumer habits and strengthening its presence in international markets.
“We have always focused on long-term development – both by improving production in Latvia, and by adapting to changes in the children’s furniture market and consumer habits in Europe. By acquiring competitor’s assets, we gain not only production resources and intellectual property, but also the opportunity to expand our product range and continue developing the brand on an international scale. Financing from Luminor Bank provides the necessary flexibility to complete this transaction and continue the company’s sustainable growth,” says Rene Stenvang, Member of the Board of Hoppekids.
