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In 1957, Arjo was founded in Eslöv by Swedish entrepreneur Arne Johansson. Originally, the company manufactured components and parts for other manufacturers, including for medical equipment.

Arne Johansson was quick to notice a market need for special bathing equipment and walking aids in healthcare and elderly care, as well as patient handling and transfer equipment for healthcare professionals. Arne made the shrewd decision to develop a range of innovative products to meet these needs, which were extremely well received. Shortly thereafter, Arjo began selling its products beyond Sweden's borders.