Gabriel has agreed to sell the European FurnMaster operations, comprising the Polish and Lithuanian subsidiaries and the dedicated Aalborg division, to a Leggett & Platt subsidiary at an enterprise value of DKK 67.3m, plus a conditional deferred payment of up to DKK 7.5m. As we estimate the European part constitutes the majority of FurnMaster, we now value continuing operations alone and exclude FurnMaster entirely from our estimates, including the still-for-sale Mexican business, which we treat separately as a potential source of proceeds rather than earnings. This reflects management's strategic pivot towards developing the global textile business. 

FurnMaster valued conservatively at DKK 30m in cash, below carrying value 

The agreed enterprise value sits well below the carrying value of the discontinued assets, and after the liabilities assumed by the buyer, equity proceeds are materially lower. The protracted European sale process and relatively low price signal limited market appetite for the assets, and we take the shortfall to carrying value as a realized loss against equity. For the still-for-sale Mexican operations, which remain loss-making, we assume a contribution of zero to a low single-digit million DKK figure. Given that even the healthier European part attracted only a modest price, we see little reason to expect meaningful proceeds from the Mexican unit. 

Near-term earnings lifted as the FurnMaster drag is removed 

Isolating the continuing textile operations improves the near-term earnings profile, as loss-making FurnMaster no longer weighs on group EBIT. We see genuine growth opportunities in textiles, but against a structurally soft furniture market, and we therefore forecast a gradual recovery. We expect Gabriel's own initiatives, notably the continued investment in key account managers, to support an improving trajectory into a stronger H2. The lagged revenue contribution from these hires should become more visible as the year progresses and market conditions normalize. 

Awaiting closing for final balance sheet impact and use of proceeds 

The transaction remains subject to customary closing conditions, and precise proceeds will only be confirmed at closing, expected within FY 2025/26. Our DKK 30m estimate is therefore provisional and will be updated once reported. Management has indicated the settlement will strengthen the balance sheet, and we expect proceeds to be directed primarily towards reducing financial gearing. A stronger balance sheet would in turn give Gabriel greater capacity to invest in the continuing business over time. 

WACC lowered to 8.8% on reduced business risk, but net valuation impact is negative 

With the cyclical, loss-making FurnMaster exiting the group, we regard the continuing textile business as lowerrisk and reduce our WACC from 9.4% to 8.8%, which in isolation lifts our DCF. This is more than offset by the below-carrying-value sale price and the removal of FurnMaster's future earnings from our forecast. We also apply a conservative terminal EBIT margin of 7.5% to reflect the cyclical nature of the market. On balance we arrive at a target price of DKK 270 per share and, with limited upside to the current price, lower our recommendation to "Reduce".

Disclaimer: HC Andersen Capital receives payment from Gabriel for a DigitalIR and research agreement. /Rasmus Køjborg and Victor Skriver 08:30 27/07/2026.