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

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi
SVA

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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