The EU has given the go-ahead to Sweden-based private equity fund EQT IV Ltd's purchase of clothing company Brandtex Group A/S.

EQT will pay an undisclosed sum for the company, which is based in Denmark and is one of the biggest clothing businesses in Scandinavia.

The acquisition comes as part of EQT's plan to buy businesses with strong potential for development and expansion.

Brandtex will remain in Brande, Denmark, and chief executive Jens Iversen will stay in his role until a replacement is appointed.

Iversen said that the company was "undergoing a generational handover" and that the owners had decided that "the Brandtex Group has a higher strategic value to a new owner."

Brandtex Group has strengthened the profiles of several of its brands over the past few years, as well as launching new brands and its own retail chains.

The company's brands include Blend, b young, Brandtex, Fransa, 4YOU, Kabooki, Jensen Women, Signature, Sodahl Design, and Erla,

EQT is a group of private equity funds that manages approximately EUR 6 billion in equity in seven funds.