Flos B&B Italia Group Entertaining Informal Offers for Its Furniture Division
MILAN — Not even a year had gone by between when former Flos B&B Italia Group chief executive Daniel Lalonde unveiled what he referred to as the retail “LVMH of Home,” and unexpectedly stepped down in January.
The 25,000-square-foot space on New York City’s 135 Madison Avenue that Lalonde was referring to opened last year and finally brought B&B Italia, Flos, Louis Poulsen, Maxalto, Arclinea and Azucena together under one roof.
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Sources close to the situation told WWD that Lalonde parted ways with the company after disagreements on restructuring plans. Sources also said the group has entertained informal offers.
One source said that Holland, Mich.-based Haworth — which owns fellow furniture and lighting brands Poltrona Frau, Cappellini, Cassina, Janus et Cie, Luminaire, Ceccotti Collezioni, Karakter, Luxury Living Group, Interni and Zanotta — made an offer of between 800 million euros and 1 billion euros for Flos B&B Italia’s furniture division. The furniture arm of the Italy-based conglomerate includes vanguard brands B&B Italia, Maxalto, Denmark-based Audo Copenhagen, Azucena and kitchen brand Arclinea. The offer was refused, as it was deemed too low.
Haworth declined to comment. Flos B&B Italia Group could not be reached for comment.
Industry observers believe that splitting the group’s furniture and lighting business would not be illogical, but it’s not clear if the aim is to sell the whole company or parts of it — or that it is actively shopping for a buyer.
In January, Flos B&B Italia Group, formerly known as Design Holding, said in a statement that former Flos CEO Piero Gandini was appointed its executive chairman “effective immediately,” but that Lalonde will “remain a member of the board of directors of the group to support the future development of the business.” The release did not provide additional details and did not name a new CEO.
Market leaders here say the appointment of Gandini makes sense, especially to lead the lighting division, which includes Copenhagen-based Louis Poulsen, should the furniture business be sold, separate from lighting.
Gandini, according to market insiders, was a well-regarded executive with decades of experience in the lighting sector. Gandini left Flos as its longtime CEO and chairman in 2019 and is the son of the lighting firm’s first manager Sergio Gandini, who started at the helm in its early heyday in 1963 and later bought it in 1964. Flos was founded in Merano, Italy, in 1962 and boasts an extensive catalogue of iconic lamps created by legendary design names — Philippe Starck, Patricia Urquiola, Ron Gilad, Michael Anastassiades and Vincent Van Duysen among them.
Lalonde was key in developing a unique strategy that aimed at bringing the group’s vanguard brands B&B Italia, Flos, Louis Poulsen, Maxalto, Arclinea and Azucena under one roof in new spaces worldwide. At the time of the New York opening, he told WWD the group was on track to meet its near-term goal of 1 billion euros in sales.
Lalonde also said it was the first time major luxury European furniture and lighting brands stood together, making it easier for customers to build the home of their dreams.
Flos joined Design Holding in 2018 when funds Investindustrial and the Carlyle Group formed the holding company. Roberta Silva was named Flos’ CEO in 2019. Silva stepped down in 2024.
In 2021, the Italian conglomerate inked a joint venture with Fendi to form Fashion Furniture Design, or FF Design, to develop the Fendi Casa business. The line was previously produced and distributed by licensee Luxury Living, operating through Club House Italia.
In its 2025 M&A report, PwC said the volume of deals greater than $1 billion in value increased by 17 percent in 2024 and sees the market gaining momentum later in the year.
In Italy, PwC said there was an 18 percent decline in M&A deals in 2024 — in-line with the rest of Europe. Throughout Europe, the Middle East and Africa, deal values, however, increased by 15 percent over the same period. “M&A in consumer markets in EMEA has been weighed down by inflation and macroeconomic conditions, as well as by the proximity of two wars that created greater macroeconomic uncertainty in the region,” it said.
In a surprise deal in the second half of 2024, Nemo Group, owned by Milan-based lighting entrepreneur Federico Palazzari, turned itself into a lighting and furniture group by adding two crown jewels to its growing design hub of brands with the acquisition of lighting maker Fontana Arte and Driade, its first furniture property. Deals of this nature, allowing groups to complete the home with luxury kitchens, lighting and furniture, are expected to rise into 2025.
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