At the end of 1982, Proventus purchased a holding of 25% of Upsala Ekeby AB, which was a conglomerate including manufacturers of consumer design products. Later this led to a merger with Proventus.
Upsala Ekeby AB consisted of four businesses;
Rörstrand – a ceramics manufacturer
Kosta Boda – a crystal glass manufacturer
GAB Gense – a cutlery manufacturer
Solna Centrum – a shopping mall
Like many conglomerates assembled during the 1960s, the logic for combining these businesses resulted in little of the strategic or financial gains originally sought by Upsala-Ekeby. The company was suffering from a shortage of capital as well as severe profitability problems. Its market capitalization was significantly below the aggregate value of the individual businesses had they been separate entities. Proventus undertook a comprehensive analysis of the company and concluded that all of its operating entities possessed good manufacturing capabilities, strong design skills, and strong brand names in their respective markets. Even so, they required additional investments to upgrade operations and restore them to profitability.
After discussions with Upsala-Ekeby’s management, Proventus initiated its investment in 1982. In 1983, Rörstrand, the ceramics manufacturer, was sold to a Finnish industrial conglomerate and the proceeds applied to improving manufacturing facilities, expanding distribution networks, and strengthening product ranges for Kosta Boda and GAB Gense. Through a series of transactions, Proventus ultimately acquired all of the Upsala-Ekeby entities the following year. After upgrading its program, the Solna Centrum real estate operation was divested in 1985.
Profitability continued to improve and Kosta Boda received international recognition for its high design standards. To become internationally competitive, the Swedish crystal industry required further consolidation, and in December 1989, Kosta Boda was sold to Orrefors: Kosta Boda’s main competitor and a publicly traded subsidiary of Swedish Investment company, Incentive AB. As part of the consideration, Proventus received 35% shareholding in the merged entity. In a concurrent transaction, Incentive also acquired GAB Gense.