DGAP-Adhoc: Gerry Weber International AG acquires Hallhuber


Gerry Weber International AG  / Key word(s): Acquisition

22.12.2014 17:21

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad-hoc announcement pursuant to § 15 WpHG

GERRY WEBER acquires Hallhuber

(Halle/Westphalia, 22 December 2014) GERRY WEBER International AG has
agreed to acquire all shares in Munich-based fashion company Hallhuber from
private equity firm Change Capital Partners LLP. The acquisition of this
fashion manufacturer and retailer continues GERRY WEBER's growth strategy
and pushes ahead the verticalisation of its business model. Hallhuber
enables GERRY WEBER to move into an attractive segment of the womens
fashion market targeting a younger clientele, namely trend-oriented women
in their mid-twenties and older.

Hallhuber with its two "Hallhuber" and "Hallhuber Donna" brands will be
managed as stand-alone brands within the GERRY WEBER Group. Given that
Hallhuber will benefit from GERRY WEBER's operational expertise in the
areas of sourcing, international retail expansion and logistics, GERRY
WEBER expects this acquisition not only to deliver an attractive
contribution to Group profitability but also to accelerate the company's
growth.

Brands and distribution channels

GERRY WEBER and TAIFUN, the two existing brands managed by the fashion and
lifestyle company based in Halle/Westphalia, address female customers in
the mid-thirties and older who have a sure sense of style and are looking
for feminine and high-quality garments. This portfolio is rounded off by
the well-established SAMOON brand for plus-sized womenswear without a
defined age group focus. By expanding the brand portfolio through the
addition of the two complementary Hallhuber brands, the GERRY WEBER Group
will gain access to a new and younger target market of women with a
predominantly urban and trendy orientation.

Hallhuber

Hallhuber generated sales of EUR 109.2 million in the fiscal year 2013 and
reported earnings before interest, taxes, depreciation and amortisation
(EBITDA) adjusted for one-time effects of EUR 9.5 million for the period.
The company's expectation for the current fiscal year 2014 (ending 31
December 2014) envisages a clear rise in sales to approximately EUR 140
million and an adjusted EBITDA of approximately EUR 14.0 million. Operating
a completely vertically integrated business model, Hallhuber currently
employs 1,500 people and runs 94 own retail stores, twelve outlets as well
as 113 concession spaces in six countries; approx. 82% of Hallhuber sales
are generated in Germany. GERRY WEBER will support Hallhuber in particular
in the areas of sourcing and logistics as well as in the expansion of its
network of company-managed retail stores in Germany and abroad.

Both companies anticipate an improvement in their profitability as a result
of synergies. GERRY WEBER assumes that Hallhuber will start making a
positive contribution to the Group's operating profit and earnings per
share already in the financial year 2014/15 (1 November 2014 to 31 October
2015). An important role will be played in this context by the Hallhuber
management team who will continue to manage the business and push ahead its
positive development in conjunction with the GERRY WEBER team following the
takeover.

Transaction

The acquisition of the urban fashion brand and Hallhuber's 219 sales spaces
flows directly from GERRY WEBER's announced strategy of generating
profitable growth also through acquisitions. The Hallhuber brands are
complementary to our existing GERRY WEBER brands, they operate a completely
vertical business model and they are ready to move into new European
markets. Hallhuber is looking at enormous sales and profit growth potential
and its options for further development have barely been tapped. 

The parties have not disclosed the purchase price paid for 100% of the
Shares in Hallhuber. The acquisition will presumably be funded by raising
long-term debt. GERRY WEBER International AG's very strong balance sheet
means that the equity ratio will remain above 50% even following this
transaction. The GERRY WEBER Group will fully consolidate the Hallhuber
companies already in its FY 2014/15 accounts. The transaction is subject to
approval by the cartel authorities in Germany and Austria.

Admitted to the Regulated Market of the Frankfurt Stock Exchange (Prime
Standard)
ISIN: DE0003304101
WKN: 330410

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GERRY WEBER International AG


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Investor Relations Contact
Claudia Kellert
phone: +49 (0)5201 185 8422
e-mail: c.kellert@gerryweber.de

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Public Relations Contact
Catharina Berndt
phone: +49 (0)5201 185 320
e-mail: c.berndt@gerryweber.com


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22.12.2014 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Gerry Weber International AG
              Neulehenstraße 8
              33790 Halle/Westfalen
              Germany
Phone:        +49 (0)5201 185-0
Fax:          +49 (0)5201 5857
E-mail:       c.kellert@gerryweber.de
Internet:     www.gerryweber-ag.de
ISIN:         DE0003304101
WKN:          330410
Indices:      MDAX
Listed:       Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
              Freiverkehr in Berlin, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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