Dec 23, 2014
Gerry Weber buys Hallhuber, eyes menswear
Dec 23, 2014
FRANKFURT, Germany - Germany's Gerry Weber has agreed to buy fashion group Hallhuber and announced on Monday plans to return to the menswear market as part of its expansion strategy.
Gerry Weber has been expanding beyond its home market and has said it could also make acquisitions to add brands to complement its Gerry Weber and Taifun, which cater to women in their mid-thirties and older, and the Samoon brand for plus-sized womenswear.
The purchase of Hallhuber from private equity firm Change Capital Partners, announced on Monday, will give it access to the market for women in their mid-twenties.
In addition, management board member David Frink told a German newspaper that Gerry Weber has plans to buy a menswear brand, without naming any possible targets.
Gerry Weber quit the menswear market in 2009 to focus on women's clothing.
German daily Handelsblatt quoted Frink as saying that the company would aim to design and produce its own menswear collection if it can identify a suitable takeover target.
The takeover of Hallhuber will start adding to Gerry Weber's operating profit and earnings per share in its current financial year to the end of October, Gerry Weber said, adding that the parties had agreed not to disclose the deal's financial details.
Hallhuber expects to post 2014 sales of about 140 million euros (110 million pounds) and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 14 million euros.
By comparison, analysts expect Gerry Weber to report 2013/14 sales of 865 million euros, according to Thomson Reuters data.
Gerry Weber last month said that sales and earnings for the financial year to Oct. 31 are likely to be lower than it previously expected, citing unseasonably warm weather in its final quarter. The group is due to publish 2013/14 results on Feb. 26.
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