Waterford Wedgwood sold by private equity for $437m

Wedgwood ceramics, once one of the UK's most famous industrial brands, has been sold by its US private equity owners to a Finnish company better known for making scissors and garden equipment.

Fiskars Corporation is paying $437m for Waterford Wedgwood Royal Doulton, the formerly Irish-listed crystal and ceramics company that was bought out of administration by KPS Capital Partners, the US private equity company, in 2009.

Kari Kauniskangas, president and chief executive of Fiskars, said the deal would strengthen the Finnish company's presence in the US, Europe and Asian markets. Fiskars shares rose slightly on the announcement.

Fiskars, a home and garden products company, has in recent years diversified its business buying the Nordic kitchenware brands Iittala and Royal Copenhagen.

Michael Psaros, managing partner at KPS, said the group had "made a very nice return but this was by far the most ambitious, complex, difficult, and global turnaround we have ever undertaken".

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Waterford Wedgwood was burning cash at a rate of $110m a year when it was taken over by KPS. Under private equity ownership, it broke even in the first year and has grown earnings before interest, tax, depreciation and amortisation by $150m over the past six years.

Mr Psaros said the deal with Fiskars would save 3,800 jobs including 500 in Stoke in the UK.

The sale comes as Wedgwood prepares this month to unveil a £34m investment in a new production facility and visitor centre in Stoke, which is expected to attract 175,000 visitors a year, making it one of the UK's leading attractions.

Overall the group, which includes the glass manufacturing business in Waterford in Ireland, reported turnover of $450m in the financial year to April 2014, with Asia accounting for 40 per cent of sales. The company reported an operating profit last year of £36m.

KPS reduced the workforce by about 40 per cent as production was moved overseas to cheaper locations. The company still makes its most expensive lines of china and crystal in its UK and Irish factories, however.

As part of efforts to grow sales and protect and promote high-quality UK manufacturers, trade unions in Stoke are expected to press the new Conservative government to introduce mandatory country-of-origin stamping on Stoke-made products.

Several Stoke potteries companies such as Steelite International and Portmeirion have reported improved sales, as English-made products start to recover market share from foreign-made, cheaper rivals.

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