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Spartoo in exclusive talks to pick up rival André
Posted on Thursday, 11 January 2018 07:41
French shoe retailer Spartoo has entered into exclusive negotiations to acquire Vivarte’s André as the vendor struggles with debt.
The deal has been submitted to the representative bodies of the staff and, subject to the usual raft of approvals and agreements, the companies expect the transaction to be carried out in the second quarter of 2018.
Spartoo believes the acquisition of André will not only create a significant leader in the industry, with turnover equally split between its networks of physical stores and online, but will also double its annual revenue to around EUR 250.00 million.
The buyer generates sales of around EUR 150.00 million, with the target publishing roughly EUR 100.00 million in turnover per year.
André is reportedly twice the size of Spartoo in terms of stores and employees as it has around 175 shops and 800 employees, compared to the acqurior’s 400 staff.
The deal, should it take place, would maintain the target’s brand, with the buyer agreeing to take over all the group’s locations and workforce.
Vivarte has been exploring ways to reduce debt in recent months as it faces competition from large clothing retailers such as H&M and Primark.
As part of plans to restructure the business, the group has been exploring sales of clothing manufacturer Naf Naf and footwear retailer Besson Chaussures.
Vivarte was also considering options for men’s apparel company Etablissements Charles Chevignon; however, reports in November suggested it will not sell the asset due to a lack of interest.
The company completed the disposal of women's clothing retailer Kookai to Magi for an undisclosed amount in July 2017; this deal came shortly after it offloaded footwear group Pataugas to Hopps Group.
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