Kwintet to acquire The Cotton Group
Kwintet, the leading European supplier of professional wear, has signed an agreement to acquire The Cotton Group, a leading European promotional wear company marketing the B&C brand.
Kwintet has signed an agreement with the owners including Mr. Jean Chabert, its founder, to acquire The Cotton Group, a promotional apparel producer, with annual sales exceeding €70m. The parties have agreed not to disclose the terms of the transaction.
Headquartered in Belgium, The Cotton Group designs and markets a wide range of styles under the B&C brand, which are distributed via a comprehensive European network of independent partners. Collections include t-shirts, shirts, polo shirts, sweat shirts, fleece, jackets and similar products.
Through rapid expansion, B&C has developed into the world’s top 5 promotional apparel brands and has achieved a number 2 position by volume in Europe. Revenues currently exceed €70m, which are expected to continue increasing at the healthy growth rates seen in recent years. The Company has more than 100 employees in Europe and Asia.
The B&C brand benefits from a strong positioning and high brand awareness among its customers, for whom they stand for quality, creativity and high value for money. The European promotional sector, in which B&C operates, is still developing and offers significant growth opportunities.
This acquisition will allow Kwintet to further develop the company in a sector which complements its business, and to increase its European outreach. This is in line with the successful buy-and-build strategy adopted by Industri Kapital, the European private equity firm, which acquired a majority stake in Kwintet in November 2005.
Anders Groenlund, CEO of Kwintet, said: ”We are looking forward to working with The Cotton Group as we continue to build on Kwintet’s strong market position in Europe. The Cotton Group is a leading supplier in it’s sector, and both Kwintet and the management team of the Cotton Group see many opportunities to accelerate the continued growth of both The Cotton Group and Kwintet.”
Kwintet intends to develop The Cotton Group and the B&C brand along the strategy which have been successfully prepared and executed by the management team of the Cotton Group. “We believe that The Cotton Group has a strong management team in place, and are very pleased that the whole team is excited about becoming part of the Kwintet Group” adds Anders Groenlund.
The transaction is subject to approval by the competition authorities.