Stylepit aquires Norwegian Conseptor’s store chain !Solid and a range of private label brands.
Danish Stylepit A/S , formerly known as Smartguy, today announces it has entered into a conditional agreement regarding the merger with companies and assets owned by the Norwegian company Conseptor AS.
The agreement entails the acquisition of the four brands Solid, Peppercorn (PEP), Desires and Tailored Originals, Conseptors retail activities in Denmark and Norway, and B2B webshops belonging to the four brands. The majority of revenues within the acquired activities consist of wholesale revenues from these four brands across Europe. These wholesale activities will be operated as a stand alone business.
Stylepit says the acquisition will be financed through the issuance of 184 million new Stylepit A/S shares to Conseptor AS. The purchase price for them corresponds to 208 million DKK.
“A merger will lead to a stronger platform and it will strengthen us fundamentally and financially”, Marc Jeilman, CEO of Stylepit A/S says.
Stylepit points out it has been doing business with Conseptors Danish company CNS Group A/S – as operational owner of the four brands – for many years.
Conseptors retail business is expected to account for 30% of revenues in 2015 and consists of 37 Solid stores in Denmark and Norway, including flagship stores in central Copenhagen and CPH Airport. The offline retail activities will allow Stylepit A/S to take advantage of new strategic omni-channel opportunities; generating cross-selling between offline stores and online retail.
The acquisition will also give Stylepit A/S access to large volumes of own-label products, a private label team and significantly higher gross margins on private label compared to Stylepit A/S’s current margins. This is expected to result in a swift increase in the private label share above 25%.
“The strategic potential of this merger is huge. We expect to succeed in selling more products with a value chain from own production to the end user, so we see great opportunities to improve our bottom line significantly, while also ensuring a better loyalty”, said Nicolai Kærgaard, chairman of Stylepit A/S.
Stein Lande, CEO of Conseptor AS and future candidate for the Board of Stylepit A/S, said: “We see great potential in the combination of a strong online presence and a strong private label setup. Conseptor has already seen the advantages of leveraging a high private label share and we see this as a way forward for the industry. We have great expectations for this merger. ”
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