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