Ikea Group plans €1bn investment in recycling companies and forests

Furniture retailer nets a5.2bn from the sale of its product development and supply chain business to group set up by founder

Ikea has pledged to invest a1bn (850m) in recycling companies and forests after netting a5.2bn from the sale of its product development and supply chain business.

The deal between the retailer and Inter Ikea, a group set up by Ingvar Kamprad, the founder of Ikea, which controls the brand and design trademarks behind his empire, was revealed as the furniture retailer reported a 7.4% rise in annual global sales to a35.1bn, boosted by 29% growth online to a1.4bn.