Swedish apparel retailer MQ Holding AB said it is acquiring another clothing retailer Joy Shop AB from Aktiebolaget Segulah, which will help it strengthen its position in the Nordic fashion market.
“Through the acquisition, MQ gains 54 stores in Sweden and an online shopping channel and the purchase price paid in cash amounts to SEK 38.5 million,” MQ Holding informed in a press release
MQ Holding also added that the acquisition is expected to have a neutral impact on earnings for MQ's current 2015/2016 fiscal and will be run as a separate retail brand within the MQ Group.
Retail-clothing company Joy was founded in 1971 and runs 54 wholly owned stores in Sweden as well as an online shopping website.
The company which has 350 employees, targets 50 plus women through its offerings, reported sales of SEK 258 million and an operating loss of SEK 9 million in 2015.
“With Joy as part of our Group, we will reach an attractive customer group that has strong buying power and a keen interest in fashion,” Christina Ståhl, CEO of MQ said.
“Women in the 50 plus age group account for more than half of the Swedish womenswear market and are today the market's fastest growing customer group,” she added.
“Subsequently, we see potential for growth in this segment and have a clear strategy for developing the company and at the same time, we see interesting synergies in many areas,” Stahl observed.
The transaction is conditional on the Swedish Competition Authority's approval and obtaining the consent of counterparties in certain material agreements to the ownership change.
Charlotte Nordén, CEO of Joy too said, “Joy gains more fashion expertise and retail know-how with MQ as its new owner and thereby, puts Joy in a stronger position for the future.”
“We look forward to working together with MQ to continue to develop our customer offering and further build our well-established brand,” Norden also added. (AR)
Fibre2Fashion News Desk – India