Polarn O. Pyret acquires majority of Finnish master franchise business
Polarn O. Pyret, the Swedish kidswear chain owned by RNB Retail and Brands, has bought 51% of its Finnish master franchise business Kids Company Oy, with a mutual option to acquire respectively sell the remaining 49% within a period of four years.
Kids Company Oy has twelve stores in urban areas in Finland, as well as an e-commerce store and three franchise stores. The company is expected to generate net sales of about 100m SEK annually, and has good profitability.
"The takeover of the Finnish franchise business is being carried out in light of the strategic review of Polarn O. Pyret we currently are conducting. One of our findings from this review is to further deepen our presence in our core markets. The acquisition will enhance Polarn O. Pyrets´ market leading position in the Nordic region," says Magnus Håkansson, President and CEO of RNB RETAIL AND BRANDS.
"I am very happy that we have managed to acquire the Finish franchise business. It’s a stable business both in terms of profitability and sales with a strong market position. Net sales in the physical stores continue to grow which is also the fact for the e-commerce business. We have also established a solid plan to increase the number of proprietary stores in the coming years," says Nanna Hedlund, CEO, Polarn O. Pyret.
The acquisition is expected to close on March 31, 2016, and Anne Nikula, founder of Kids Company Oy, will remain in her role as CEO of the Finnish business after the acquisition.
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