IC COMPANYS A/S
COMPANY ANNOUNCEMENT
Today IC Companys has entered into an agreement to sell its Mid Market division
comprising of the four Mid Market brands InWear, Matinique, Part Two and Soaked
in Luxury as well as the store concept COMPANYS to DK Company.
The divestment of the Mid Market division is an important strategic milestone
to IC Companys. In the future the Companys may focus completely on the Premium
segment under which the Company’s three brands Tiger of Sweden, Peak
Performance and By Malene Birger combined have realized an average revenue
growth rate of 8% for the last three financial years and an EBIT margin of 8.2%
for the financial year 2012/13. Unaudited comparative figures for continuing
operations are presented in Appendix 1 attached to this announcement.
Pursuant to the agreement DK Company has acquired the entire Mid Market
division including all trademarks and commercial rights, employees and retail
stores. The four brands together with the COMPANYS concept operate in the Mid
Market segment where DK Company has its primary business focus.
The Mid Market division generated a revenue of DKK 891 million and suffered an
operating loss of DKK 37 million for the financial year 2012/13. However, after
having adjusted for non-recurring costs, the division generated an operating
profit of DKK 9 million.
DK Company’s acquisition price consists of DKK 50 million in cash and
203,628,379 shares in the company DK Company A/S listed on the NASDAQ OMX
Nordic, First North, corresponding to an equity share of 10.11% of the total
share capital. Based on the closing price on 26 March 2014, the market value of
the shares amounted to DKK 126 million.
Group CEO Mads Ryder commented:
”We firmly believe that IC Companys will achieve better results by focusing
clearly on operating fashion and sports brands in the Premium segment which
will constitute the core business in the future. This is an attractive market
with strong growth rates and good earnings opportunities, which in particular
Tiger of Sweden and By Malene Birger have experienced during the past few
years. All three Premium brands have generated solid earnings and continue to
hold large international growth potentials. At the same time we believe that
the future potential of the Mid Market segment is better realized by DK Company
as the owner.”
The final closing of the agreement with DK Company is expected to take place by
end June 2014. Subsequently, a transition period of six to twelve months will
follow during which IC Companys will provide services to the divested business
unit. FIH Partners, Plesner and PwC Transaction Services have provided
consultancy services to IC Companys.
The agreement is not expected to affect the Group’s outlook for the financial
year 2013/14. Management expects the consolidated revenue from continuing
operations for 2013/14 to attain a level of DKK 2,560 - 2,580 million and an
operating profit of DKK 195 - 215 million. Investments are expected to attain a
level of DKK 70 - 90 million.
IC COMPANYS A/S
Mads Ryder
Group CEO
PLEASE DIRECT ANY QUESTIONS REGARDING THIS ANNOUNCEMENT TO:
Jens Bak-Holder
Investor Relations Manager
+45 21 28 58 32
