Home / Knowledge / News / Apparel/Garments / IC Companys sells mid market brands to DK Company
IC Companys sells mid market brands to DK Company
28
Mar '14
IC Companys has entered into an agreement to sell its Mid Market division comprising of the four Mid Market brands InWear, Matinique, Part Two and Soaked in Luxury as well as the store concept COMPANYS to DK Company.
 
The divestment of the Mid Market division is an important strategic milestone to IC Companys. In the future the Companys may focus completely on the Premium segment under which the Company’s three brands Tiger of Sweden, Peak Performance and By Malene Birger combined have realized an average revenue growth rate of 8% for the last three financial years and an EBIT margin of 8.2% for the financial year 2012/13. Unaudited comparative figures for continuing operations are presented in Appendix 1 attached to this announcement.
 
Pursuant to the agreement DK Company has acquired the entire Mid Market division including all trademarks and commercial rights, employees and retail stores. The four brands together with the COMPANYS concept operate in the Mid Market segment where DK Company has its primary business focus.
 
The Mid Market division generated a revenue of DKK 891 million and suffered an operating loss of DKK 37 million for the financial year 2012/13. However, after having adjusted for non-recurring costs, the division generated an operating profit of DKK 9 million.
 
DK Company’s acquisition price consists of DKK 50 million in cash and 203,628,379 shares in the company DK Company A/S listed on the NASDAQ OMX Nordic, First North, corresponding to an equity share of 10.11% of the total share capital. Based on the closing price on 26 March 2014, the market value of the shares amounted to DKK 126 million.
 
Group CEO Mads Ryder commented:
“We firmly believe that IC Companys will achieve better results by focusing clearly on operating fashion and sports brands in the Premium segment which will constitute the core business in the future. This is an attractive market with strong growth rates and good earnings opportunities, which in particular Tiger of Sweden and By Malene Birger have experienced during the past few years. All three Premium brands have generated solid earnings and continue to hold large international growth potentials. At the same time we believe that the future potential of the Mid Market segment is better realized by DK Company as the owner.”
 
The final closing of the agreement with DK Company is expected to take place by end June 2014. Subsequently, a transition period of six to twelve months will follow during which IC Companys will provide services to the divested business unit. FIH Partners, Plesner and PwC Transaction Services have provided consultancy services to IC Companys.
 
The agreement is not expected to affect the Group’s outlook for the financial year 2013/14. Management expects the consolidated revenue from continuing operations for 2013/14 to attain a level of DKK 2,560 - 2,580 million and an operating profit of DKK 195 - 215 million. Investments are expected to attain a level of DKK 70 - 90 million.
 

IC Companys


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search