Poster Store Acquisition: Key Details, Impact, and What Comes Next

Desenio's acquisition of Poster Store marks a significant move in the affordable wall art industry. By combining their strengths, the two companies aim to enhance their market presence and expand globally. This strategic merger is expected to leverage their product offerings and digital marketing expertise, benefiting consumers with more accessible and attractive wall art options.

What Is Poster Store?

Founded in 2014, Poster Store specializes in Scandinavian wall art, offering a wide range of posters, canvas prints, and frames. Their unique selling points include a focus on Scandinavian design, a "Happiness Guarantee" for customer satisfaction, and fast delivery within 2-4 business days. Additionally, they provide free shipping on orders over $59 and offer customizable gallery wall templates, ensuring a high-quality and versatile selection for various interior design styles.

Who Acquired Poster Store?

Desenio is a prominent retailer in the wall art industry, specializing in posters, frames, and canvas paintings. Their key offerings include a diverse range of posters, high-quality frames, and unique canvas pieces, along with options for personalized photo posters. Desenio is known for its trendy and stylish art pieces that reflect the latest interior design trends. The company holds a strong market position, making art accessible and affordable while maintaining a significant influence in the home decor market.

When Was Poster Store Acquired?

Desenio acquired Poster Store on November 25, 2020. This acquisition occurred during a period of significant growth for both companies, aligning with industry trends of expanding market presence and leveraging digital marketing expertise. The timing also reflects Desenio's strategic move to enhance its product offerings and enter new markets, including the U.S. and Asia, amidst a growing demand for affordable and stylish wall art.

Why Was Poster Store Acquired?

• Market Expansion: The acquisition of Poster Store allows Desenio to expand its operations across Europe, the U.S., and Asia. By combining their strengths, the two companies aim to bring more and better art at great prices to art-loving consumers in these regions. This strategic move is expected to significantly boost their market presence and revenue, with the combined entity projected to reach sales of SEK 1 billion.
• Technology Integration: Desenio benefits from Poster Store's technology by leveraging a data-driven creative process and digital marketing expertise. This integration enhances their product offerings and market reach, allowing them to streamline operations and capitalize on synergies. Both companies' focus on ecommerce and digital marketing ensures a seamless technological integration that supports their growth objectives.
• Competitive Advantage: The acquisition strengthens Desenio's position against competitors by consolidating its market presence and expanding its product offerings. The combined group will draw on its broad product range, powered by a data-driven creative process and digital marketing expertise. Additionally, the scalability of Poster Store’s business model and the alignment in product styles and aesthetics further bolster Desenio's competitive edge in the affordable wall art market.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The transaction was a stock deal.
• Key Conditions or Agreements:
  • Desenio acquired 100% of Poster Store.
  • Both companies will continue to operate under their respective brands.
  • Poster Store founders will become shareholders in the new entity.
  • The acquisition is backed by Verdane, Desenio’s majority owner.
  • A bond has been issued in connection with the acquisition.
  • The combined group will focus on expanding operations across Europe, the U.S., and Asia.

Impact on Poster Store

The acquisition of Poster Store by Desenio has led to several operational and managerial changes. Both companies will continue to operate under their respective brands, maintaining their unique identities while benefiting from shared resources and expertise. The founders of Poster Store have become shareholders in the new entity, indicating a shift in ownership structure and potentially influencing management dynamics. This strategic move is supported by Verdane, Desenio’s majority owner, and aims to leverage the combined strengths of both companies to expand their market presence across Europe, the U.S., and Asia.

In terms of product offerings and services, the acquisition is expected to enhance the variety and quality of wall art available to customers. By integrating their product lines and utilizing a data-driven creative process, the combined group aims to offer more inspiring and affordable art. Employee reactions have been positive, with Poster Store's CEO expressing pride in the team and enthusiasm for future collaboration. While direct customer reactions are not detailed, the focus on providing better art at great prices suggests a favorable impact on customer satisfaction. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.