Kirsti Paakkanen to surrender ownership of Marimekko

Mika Ihamuotila

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Workidea Oy, owned by the Marimekko principal proprietress Kirsti Paakkanen, announced on Wednesday that it is to sell 804,000 shares (10,00% of the outstanding shares) in Marimekko Corporation, a leading Finnish textile and clothing design company, to Muotitila Ltd, a holding company owned by Mika Ihamuotila.
      Furthermore, Workidea has committed to sell the rest of its Marimekko stock (a further 804,000 shares) to Muotitila Ltd. Muotitila has the right to purchase these shares at any time before the end of the year 2008.
      However, the voting rights related to the entire 20.00% of outstanding shares will be passed on to Muotitila already today.
     
Mika Ihamuotila, in turn, has been elected the President and CEO of Marimekko as of February 1st, 2008.
      "Mr Mika Ihamuotila has a very strong capacity to take Marimekko to an entirely new development phase", says Matti Kavetvuo, Marimekko Chairman of the Board in a press release given to the Helsinki Exchanges on Wednesday morning.
      Mika Ihamuotila has previously worked as the president and CEO of Sampo Bank Plc.
      Marimekko President and CEO Kirsti Paakkanen, in turn, affirms that she is delighted "that in Mika Marimekko gets a committed owner and leader."
     
"Mika possesses a rare combination of strong corporate leadership and creativity. I simply cannot think of a better captain for the company and I trust he has got what it takes to develop Marimekko further. Mika has asked me to assist him and the company even after he takes charge. I want to do this with all my heart", Paakkanen declares in the company announcement.
      In Ihamuotila’s words “Marimekko is a pearl”.
      "Its unique style has loyal admirers in several countries. However, I think the company could be much, much more. It is my aim to start building Marimekko into a cult brand within clothing, interior decoration and lifestyle as well as a company that has an international retail distribution network, a passionate staff and a market value multifold from today. That's my dream", the future CEO writes.
     
Marimekko was founded in 1951 by Armi and Viljo Ratia. The company flourished in the 1960s and 1970s, becoming something of a cult brand with its bright designs.
      Leaner times followed in the 1980s, before Workidea bought the company from its then owners the Amer Group in 1991.
      Under Paakkanen's leadership Marimekko has reinvented itself and returned to its old successful ways.
      The company posted net sales of EUR 54.6 million for the nine months to the end of September 2007, up by 6% on the previous year, and operating profit stood at EUR 7.1 million. Exports and income from international operations were up strongly and account for around 28 per cent of total sales.
      The company employs around 400 persons.


Previously in HS International Edition:
  Finnish Marimekko finds buyer for Grünstein furs (20.12.2004)

Links:
  Marimekko
  Marimekko Stock Exchange Release 31.10.2007

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