FNG is taking a big step in Scandinavia

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FNG clothing store takes over the Scandinavian Ellos Group for 229 million euros. It was announced on Friday. The deal is financed with cash and shares.
 
Located in Borås, Sweden, Ellos is an e-commerce company in fashion and interior design. It carries the Ellos, Jotex, Stayhard and Homeroom brands and has approximately 1.7 million active customers. These are mainly women between 30 and 60 years old. FNG CEO Dieter Penninckx speaks of “an ideal asset”. Around 500 people work at Ellos. The company achieved a turnover of 247 million euros last year and an adjusted operating result (EBITDA) of 21 million euros.

FNG, listed in Amsterdam and Brussels, which owns clothing stores such as Claudia Sträter, Miss Etam and Steps, buys Ellos from Nordic Capital and other shareholders. After the transaction, Nordic Capital, together with Frankenius Equity, will become “an important minority shareholder” of FNG. Supervisors still have to approve the deal.

FNG pays 124 million euros in cash from the purchase price. Furthermore, 45 million euros will be paid through the transfer of 1 million FNG shares. They have a so-called lock-up until early 2021. An amount of 45 million euros will be issued by FNG via shares or related instruments and 14 million euros will be paid via an interest-free vendor loan. This must be repaid by FNG no later than mid-January 2021 at the latest.

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Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

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