Swedish firm RNB Retail and Brands AB divests Polarn O Pyret

02 Apr '21

2 min read

Pic: Polarn O Pyret

Swedish company RNB Retail and Brands AB, which manufactures and sells clothing and accessories, has closed divestment, announced on March 10 this year. of Polarn O Pyret to private equity investor Procuritas. The company completed the divestment procedure following the approval by RNB Retail and Brand’s bondholders and the Swedish Competition Authority.

The divestment is as per the previously announced process to separate the group subsidiaries with the aim to ultimately divest the subsidiaries to stable and suitable owners, RNB Retail said in a statement.

Polarn O Pyret is a brand for baby and childrenswear that started in 1976 with the goal of making clothes that let kids be kids.

Following a SEK 40 million dividend from Polarn O Pyret to RNB Retail and Brands AB, the preliminary purchase price equals SEK 353 million. The payment from Procuritas will be made in two parts; SEK 233 million initially in cash and the remaining SEK 120 million, which will be paid during 2021.

From the combined dividend and first part of the cash consideration by Procuritas of SEK 273 million, transaction costs, repayment of credit facility and amortisation of the bond debt with total of SEK 244 million will be paid out. The remaining SEK 29 million will have positive cash flow effect for RNB Retail and Brands AB.

The process to find a suitable solution for the remaining group, including Brothers, is ongoing, the statement said.

Fibre2Fashion News Desk (RKS)

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