Welcome to Fibre2fashion.com    
fibre2fashion
Amicor - Most Trusted Anti Microbial Fibre
Textile | Apparel |  Fashion | Technology | Technical Textiles  | Corporate | Associations Android app on Google Play Android app on Google Play
 
Home >> News
 

IC Companys sells mid market brands to DK Company

March 28, 2014 (Denmark)

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
More IC Companys News...
More Apparel/Garments News - Denmark...

 
Email this
Story
Print this
Story
Letter to
Editor
Sign Up for
News Letter
Search
Companies
 
 
  RSS