SuperGroup acquires €40m partner to drive growth
Saturday 05 February 2011
SuperGroup, the owner of the trendy Superdry brand, is to embark on a major expansion in Europe after revealing yesterday that it had acquired its Benelux and French franchise partner for up to €40m (£34m) in cash and shares.
The fast-growing fashion retailer said its acquisition of CNC Collections BVBA (CNC) – SuperGroup's biggest franchise and distributor globally – from its principal Luc Clement will enable it to grab greater margins on growing sales in Belgium, the Netherlands, Luxembourg and France.
But it will also allow SuperGroup, which also operates the Cult clothing brand, to open larger format shops in the lucrative markets of Germany, Spain and Italy. Julian Dunkerton, the founder and chief executive of SuperGroup, said: "I think strategically it is massively important because it transforms our prospects in Europe per se across every aspect of what we do."
Mr Dunkerton was also effusive in his praise of Mr Clement, who joins SuperGroup as head of European franchising. CNC has been a distributor for the brand since 2004 and a franchisee from 2008. SuperGroup has 59 stores in the UK and 35 on the European continent through partners.
It will pay €7m cash for CNC and an additional €21m in shares. SuperGroup will make up the balance of €12m by the issue of shares in two instalments, depending on certain performance criteria being met over the next three years. For the nine weeks to 2 January, SuperGroup's sales surged by 93.6 per cent, boosted by organic sales and store openings globally.
SuperGroup's share price has soared since it floated at 500p in March and closed up 180p at 1,710p yesterday.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Young Preston fan has play-off hero Jermaine Beckford's shirt stolen from him at Wembley - which then appears for sale on Gumtree
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...