Wonder who’s behind those colorful plastic bricks that have sparked joy and creativity for generations? LEGO isn’t just a global toy phenomenon—it’s a family business with deep roots.
The LEGO Group is a privately held company owned by the Kirk Kristiansen family, with KIRKBI A/S (the family’s holding company) controlling 75% of the business.
The company began in 1932 in Billund, Denmark, where it remains headquartered today. Kjeld Kirk Kristiansen, grandson of founder Ole Kirk Kristiansen, served as CEO from 1979 to 2004 and played a crucial role in building the LEGO Group into the toy giant we know today.
The family maintains its strong connection to the company while employing more than 27,000 people worldwide.
Even as the LEGO Group has grown into a global enterprise with products sold in over 100 countries, its ownership structure has remained stable. This family-centered approach has allowed LEGO to maintain its values and long-term vision while continuing to innovate in the competitive toy market.
Key Takeaways
- The Kirk Kristiansen family owns the LEGO Group through their holding company KIRKBI A/S, which controls 75% of the business.
- Founded in 1932 in Billund, Denmark, LEGO remains headquartered there while selling products in more than 100 countries worldwide.
- Despite its massive global growth and 27,000+ employees, LEGO has maintained its private, family-owned structure throughout its history.
History of LEGO
LEGO’s journey began in Denmark during the early 20th century as a small woodworking shop before evolving into one of the world’s most beloved toy companies. The iconic plastic bricks we know today weren’t part of the original vision but emerged through years of innovation and adaptation.
The Founding by Ole Kirk Kristiansen
The LEGO company was founded in 1932 by Ole Kirk Kristiansen, a Danish carpenter from Billund, Denmark. Kristiansen’s primary business of making household goods had suffered, pushing him to explore new opportunities.
He began crafting wooden toys in his workshop, focusing on quality craftsmanship.
In 1934, Kristiansen named his company “LEGO,” derived from the Danish phrase “leg godt,” which means “play well”. The company initially produced wooden toys like cars, trucks, and yo-yos.
The LEGO Group remained a family business, with Ole’s son Godtfred Kirk eventually taking over leadership. Despite facing challenges, including a workshop fire in 1942, the company persevered and continued to grow in Billund.
Evolution of LEGO Bricks
LEGO’s transformation began after World War II when injection molding technology reached Denmark. In 1947, Ole Kirk purchased an injection molding machine, marking the company’s first step toward plastic toy production. Early plastic products included rattles and small toy animals.
The iconic LEGO brick as we know it today was patented in 1958 by Godtfred Kirk Kristiansen, who had succeeded his father as head of the company. The interlocking brick system with its distinctive studs and tubes created a versatile building platform.
This innovative design allowed bricks to connect securely while being easily separated. The company focused on creating a system where all bricks would be compatible, regardless of when they were made. This commitment to backward compatibility has remained a hallmark of LEGO products to this day.
LEGO Group Ownership
The LEGO Group remains a family-owned business with a unique ownership structure. This structure balances commercial interests with philanthropic goals while keeping the iconic toy company under family control.
Kirkbi A/S and Family Ownership
The LEGO Group has a clear ownership division between two main entities. KIRKBI A/S owns 75% of the company, while the LEGO Foundation holds the remaining 25%. This structure ensures that the majority stake remains with the Kirk Kristiansen family.
KIRKBI A/S serves as the family’s holding and investment company. It manages not only the family’s LEGO ownership but also their other investments and activities.
The LEGO Group has maintained its status as a privately held company based in Billund, Denmark since its founding in 1932. This private ownership has allowed the company to focus on long-term growth rather than quarterly results.
Thomas and Sofie Kirk Kristiansen’s Leadership
Thomas Kirk Kristiansen represents the fourth generation of family ownership and holds significant voting rights in the company. He works closely with his father Kjeld Kirk Kristiansen (third generation) to guide the company’s future.
In recent years, Sofie Kirk Kristiansen has also taken on important responsibilities within the family firm. The siblings are part of a carefully planned generational handover process that began in 2016.
The Kirk Kristiansen family maintains active involvement in strategic decisions while empowering professional management to handle day-to-day operations. This balance has proven successful in preserving LEGO’s values while adapting to market changes.
Family leadership emphasizes long-term thinking and responsible business practices. They regularly reinvest profits to strengthen the company’s position in the global toy market.
Business Milestones
The LEGO Group has experienced significant financial transitions and challenges throughout its history. These developments have shaped the company’s growth strategy and demonstrated its resilience in the global toy market.
Share Sales and Financial Evolution
The LEGO Group is primarily owned by the Kirk Kristiansen family through their holding company KIRKBI A/S. This family-owned business structure has been maintained despite various financial shifts.
KIRKBI A/S currently owns approximately 75% of the LEGO Group through a subsidiary called LEGO A/S, with the remaining 25% held elsewhere. This ownership structure helps the family maintain strong control over the company’s direction.
The company has experienced both prosperous periods and challenging financial times. Throughout these ups and downs, the Kirk Kristiansen family has continued to receive dividends from their profitable toy empire.
Despite being privately held, LEGO has maintained transparent financial reporting, regularly announcing profit margins and growth statistics to the public.
Navigating the COVID-19 Pandemic
During the COVID-19 pandemic, the LEGO Group demonstrated remarkable business agility. While many toy retailers struggled with store closures, LEGO saw increased demand for building sets as families sought indoor activities.
The company experienced a surprising sales boost rather than the profit drop many similar businesses faced. This success came from their quick pivot to strengthening online sales channels when physical stores closed.
LEGO also invested in digital experiences to complement their physical products, helping maintain customer engagement during lockdowns.
Manufacturing operations faced challenges with social distancing requirements, but the company implemented safety protocols to maintain production while protecting workers.
These pandemic adaptations showed LEGO’s ability to evolve quickly during global disruptions while staying true to their core brick-building concept.
LEGO’s Global Presence
The LEGO Group has grown from a small Danish toy company to a worldwide brand. While still based in Billund, Denmark, LEGO products are now sold in over 120 countries around the world.
Strategic Partnerships
LEGO has formed amazing partnerships that helped it become a global toy giant. One of their most successful team-ups is with Star Wars, creating sets that let fans build iconic spaceships and scenes from the movies.
These partnerships aren’t just about making cool toys. They help LEGO reach new fans in different countries who might love Star Wars but haven’t tried LEGO before.
Other popular partnerships include:
- Marvel and DC Comics (superhero sets)
- Harry Potter (magical building sets)
- Disney (princess castles and character sets)
These deals have helped LEGO stay relevant and exciting across generations and cultures. Kids and adults alike collect these special themed sets, making LEGO a truly global language of play.
Expanding Beyond Denmark
LEGO’s journey from a small Danish workshop to global toy leader is remarkable. Though the company remains headquartered in Billund, it has grown far beyond its Danish roots.
The company has built manufacturing facilities in several countries including:
- Hungary
- Mexico
- China
- Czech Republic
LEGO has also opened flagship stores in major cities worldwide. These colorful retail spaces feature giant LEGO sculptures and interactive play areas that draw tourists and locals alike.
LEGO theme parks have further expanded the brand’s global footprint. LEGOLAND parks in California, Florida, Germany, and other locations attract millions of visitors yearly.
Despite this worldwide growth, the company remains family-owned and true to its Danish values of quality, creativity, and imagination.
Forward-Looking Initiatives
The LEGO Group is actively pursuing ambitious plans that will shape its future in both environmental responsibility and technological advancement. These initiatives reflect the company’s commitment to innovation while staying true to its core values.
Innovation in Sustainability
LEGO is making big moves toward a greener future! The company plans to invest up to $400 million over three years to accelerate sustainability initiatives. This significant investment shows how serious they are about reducing their environmental impact.
Current CEO Niels Christiansen has emphasized the importance of creating more sustainable LEGO bricks. The company remains committed to making LEGO bricks from sustainable materials, with bio-based elements already in production.
Their sustainability goals include:
- Reducing carbon emissions
- Finding alternatives to traditional plastic bricks
- Creating packaging from renewable sources
- Eliminating single-use plastic from packaging
Digital Expansion and the Role of Technology
LEGO is embracing technology to enhance how children and adults interact with their famous plastic bricks. They’re developing new digital experiences that complement physical play rather than replace it.
The company has launched apps and online platforms where fans can design custom sets and share creations. This digital expansion helps LEGO stay relevant in an increasingly tech-focused world.
For 2024-2025, LEGO has set forward-looking expectations regarding technology integration and growth. Their IP-adresse (intellectual property) strategy involves partnerships with popular franchises and movies to create themed sets that appeal to wider audiences.
LEGO is also investing in:
- Augmented reality experiences
- Online building communities
- Educational coding platforms
- Digital design tools
Behind the Scenes
The magic of LEGO happens through careful manufacturing processes and talented teams working in facilities around the world. The heart of operations is still in Billund, Denmark.
Manufacturing the Iconic Bricks
LEGO bricks are produced with incredible precision. Each colorful plastic piece must meet strict quality standards, with tolerances of just 0.01 millimeters.
The manufacturing process starts with tiny plastic granules that are heated and molded into the familiar shapes we love.
The main production facilities are in Billund, Denmark, where LEGO was born. The company has expanded with factories in countries like Mexico, China, and Hungary. These facilities run 24/7, producing billions of bricks yearly.
The molds used to create LEGO pieces are engineering marvels themselves. They’re made from steel and can cost up to $50,000 each, but they’re built to last for decades and create millions of identical pieces.
LEGO Inside Tours offer fans a rare glimpse into the brick production process at the headquarters in Billund.
The People Powering LEGO
Behind every LEGO set are dedicated designers, engineers, and creative teams. These professionals turn ideas into the colorful building sets that delight people worldwide.
LEGO employs over 20,000 people globally, with many working at the Billund headquarters. The company maintains a strong family culture, reflecting its ownership structure. The Kirk Kristiansen family still holds approximately 75% of the shares through their holding company, KIRKBI A/S.
LEGO designers often have backgrounds in product design, architecture, or engineering. Many were LEGO fans before becoming employees! They work in collaborative teams to create new sets and themes.
The company provides behind-the-scenes content through its LEGO Insiders program, giving fans exclusive interviews with designers and news about upcoming projects.
LEGO in Popular Culture
LEGO has become deeply embedded in our culture through films, education, and creative expression. The colorful bricks transcend their role as toys to influence entertainment and learning worldwide.
LEGO and Film Franchises
LEGO has formed powerful partnerships with major film franchises, most notably Star Wars. This collaboration began in 1999 and has produced hundreds of building sets featuring iconic ships, characters, and scenes from the galaxy far, far away.
The success of these partnerships led to LEGO’s own film ventures, including “The LEGO Movie” (2014) and its sequels. These films celebrate creativity while featuring recognizable LEGO themes and characters.
LEGO video games have also gained massive popularity. Titles like “LEGO Star Wars” allow players to experience familiar stories in a playful, brick-built format. These games are known for their family-friendly humor and accessible gameplay.
Influence on Education and Creativity
LEGO has revolutionized educational approaches through products designed specifically for learning environments.
LEGO Education offers specialized kits that help teach science, technology, engineering, and mathematics (STEM) concepts.
Many schools worldwide incorporate LEGO into their curriculum to develop problem-solving skills and spatial reasoning.
The hands-on nature of LEGO building makes abstract concepts more concrete and accessible to young learners.
LEGO has inspired remarkable creativity among fans of all ages.
Talented builders known as LEGO Certified Professionals create incredible sculptures and replicas.
People like Nathan Sawaya have elevated LEGO building to an art form, with impressive exhibitions touring globally.
The annual LEGO Ideas competition invites fans to submit designs that could become official sets, further fostering a community of creativity and innovation.
