Gerry Weber to buy Hallhuber women's wear group
Gerry Weber will help Hallhuber build its own network of company-managed retail stores
Gerry Weber International is to acquire rival German women's fashion company Hallhuber Beteiligungs GmbH as it looks to develop and expand the business further.
Since being acquired from Italian fashion company Stefanel by private equity firm Change Capital Partners in 2009, Hallhuber has expanded its retail network from under 100 stores to 219 across Germany, Austria, Belgium, UK, Switzerland and the Netherlands as well as online. The company has also doubled its sales to EUR109m (US$133.2m).
Gerry Weber will team up with Hallhuber to build its own network of company-managed retail stores, particularly outside Germany.
"The Hallhuber brands are complementary to our existing Gerry Weber brands, they operate a completely vertical business model and they are ready to move into new European markets," said Gerry Weber CFO Dr David Frink.
"Hallhuber is looking at enormous sales and profit growth potential and its options for further development have barely been tapped. Now we have to work together to make the most of these options."
Hallhuber CEO Norbert Steinke added: "After exciting five years with Change Capital Partners we look forward to entering a new chapter with Gerry Weber."
Financial terms of the deal were not disclosed, and the transaction is still subject to anti-trust approval in Germany and Austria.
Gerry Weber operates more than 778 company-managed and mono-label stores worldwide, more than 2,770 shop-in-shops, and brand online-shops in nine countries. In June, the company booked an 11.6% increase in first-half net profit to reach EUR32.7m, while sales were up 2.2% to EUR412.8m.
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