Acquisitions make Skellefteå company world leader

Terese Lindqvist works as a quality controller at Latitude 64 in Skellefteå, which will now be part of the world's largest disc golf group, House of Discs.
Terese Lindqvist works as a quality controller at Latitude 64 in Skellefteå, which will now be part of the world's largest disc golf group, House of Discs.

Skellefteå company House of Discs, best known for its subsidiary Latitude 64, has acquired Dynamic Discs to become a world leader. In 2022, the companies had a combined turnover corresponding to almost700 million kronor. "We will become the largest disc golf group," says CEO David Berglund.

Skellefteå 9 mars 2023 09:29

The deal was announced ion Tuesday at the premises in Solbacken, Skellefteå, and in Emporia in Kansas, USA, where Dynamic Discs has its headquarters.

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Machine operator Sofia Eriksson works in production at the disc golf manufacturer Latitude 64 on Solbacken, which in 2022 exceeded 100 employees.

The companies have collabirated for more than ten years. In 2012, Dynamic Discs chose to place its production in Skellefteå and has also acted as distributors of Skellefteå products in the USA. In 2017, the companies jointly acquired Westside Discs.

– This will provide opportunities for a common view of strategies in different markets such as the US and Europe, says Berglund.

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Dynamic Dics discs are produced at Solbacken in Skellefteå.

House of Discs uppstod i juni I fjol samband med att private equity-bolagen, belgiska Vendis Capital och norska Equip Capital, förvärvade en majoritet i dåvarande ägarbolaget Mountain Village för mer än 1,5 miljarder kronor med villkoret att hälften av beloppet skulle gå tillbaka i den fortsatta verksamheten i första steget och ytterligare återinvesteringar skulle göras vid kommande förvärv som nu med Dynamic Discs.

Berglund reveals that the plans for the new acquisition were already being planned last year. He has commuted to the United States to conduct the negotiations in recent months.

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CEO David Berglund is happy about the acquisition of Dynamic Discs, which makes the Skellefteå group House of Discs the largest in the industry.

There are parallels in both companies' startup stories. parallels between the two kompaniers. 

Latitude 64 began by developing discs in a basement while Dynamic Discs sold discs from their truck and worked from an attic.

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Terese Lindqvist works as a quality controller at Latitude 64 in Skellefteå, which will now be part of the world's largest disc golf group, House of Discs.

– We have made the same kind of journey at about the same time. This acquisition is not so much about production and distribution, but about sales and marketing. We will now benefit from the synergy between the companies and the brands.

The acquisition means that House of Dics gets cutting-edge knowledge for the American market, where 65 percent of the players are located, while research and development, as well as manufacturing facilities, distribution channels and marketing expertise will be located in Skellefteå.

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Logistics worker Lisa Berg checks the disc warehouse at Latitude 64. In 2022, the number of disc golf courses grew by 13 percent in the world.

Growth continued for House of Discs in 2022. Turnover increased almost 60 percent to 458 million kronor and the number of employees passed 100. Operations have now been concentrated in Solbacken. The premises on Hallvägen in Hedensbyn have been closed.

Looking at 2022, the new group had a joint turnover corresponding to approximately SEK 680 million, with more than 150 employees.

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Goods handler Johan Norlund examines disks at Latitude 64. The Skellefteå group, of which the company is a part, increased turnover by almost 60 percent to 458 million kronor in 2022.

The main target for the merged companies is, according to Berglund, to ensure that more and more people choose disc golf in the future. The total market is estimated today to be approximately 250 million dollars, roughly 2.5 billion kronor.

Udisc's new industry report shows that half a billion people in the world live within 10 kilometers of a disc golf course. The growth was 13 percent in 2022 and now there are roughly 14,000 courses in the world in total.

- The key to growth is to create new paths. We see organic growth, but are looking at more acquisitions, says Berglund.

Latitude 64

Latitude 64 was founded in 2005 by four old disc golf friends: Tomas Ekström, Svante Eriksson, Johan Åström and David Berglund, all of whom remain in the company today. At the start, the quartet lived in a 16 square meter basement in Bergsbyn.

In 2011 the company moved to Hallvägen in Hedensbyn and in the late winter of 2022 it was time for the next move, to Nordic Light's former premises in Solbacken.


 
 
 
 
 
 
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