Clothing retailer Tom Tailor Holding has agreed terms to acquire Germany-based peer Bonita.
The Hamburg-headquartered buyer will pay EUR 150.00 million in cash for the firm, and will also issue a further EUR 6.00 million worth of new shares in itself to the vendor.
Upon completion, which is subject to antitrust approvals and expected in August, the seller will hold a 24.90 per cent stake in Tom Tailor.
As a result of the purchase, the acquiror will gain access to Bonita’s existing presence and stores, and plans to operate the target as an independent brand.
Dieter Holzer, chairman of Tom Tailor’s board said: “The takeover makes perfect sense for Tom Tailor and Bonita, from both a strategic and an operational perspective.
“With the acquisition we create a new heavyweight in the European fashion industry with two strong brands, as well as core competencies and market segments which excellently complement each other“.
Holzer went on to state that the purchase also provides the business with an entry point to the over-40 market and will enable Bonita to take advantage of additional growth opportunities.
Bonita provides clothing for men and women over the age of 40 and is a leading brand for the age group.
The firm was formed in 1969 and has expanded to include stores in Austria, Switzerland, Belgium and the Netherlands.
It employs approximately 4,500 people across 962 locations and recorded sales of EUR 379.00 million in fiscal 2011/12.
Tom Tailor has been trading on the Frankfurt Stock Exchange since 2010 and was formed in 1962.
It supplies casual clothing for men, women, teenagers and children and has 258 stores in over 35 countries.
With 1,626 employees worldwide, the company achieved sales of EUR 411.60 million in fiscal 2011, up 18.4 per cent on the EUR 347.70 million generated in 2010.
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