Nordic Capital invests in Gina Tricot
June 09 2014
Nordic Capital Fund VIII ("Nordic Capital") has reached an agreement to acquire the majority of the Swedish fashion retail chain Gina Tricot AB ("Gina Tricot") from existing shareholders, and will inject new equity to strengthen its financial position. The founding Appelqvist family remains a significant shareholder. Göran Bille will take over as CEO, in connection with Jörgen Appelqvist's transition into his future role on the Board of Directors.
Gina Tricot is a Swedish fast fashion retail chain that comprises 180 stores across Sweden, Norway, Denmark, Finland and Germany. With a growing online presence, Gina Tricot also reaches fashion-conscious women in 28 countries across Europe. Founded in 1997, the company is headquartered in Borås, Sweden, and has approximately 2,000 employees. In 2013, Gina Tricot reported sales of approximately SEK 2 billion.
Gina Tricot has established a strong market position delivering an attractive customer offering. Since the company was founded it has experienced significant growth, but due to amongst other things challenging market conditions, it has seen a slight decline in revenue in recent years. Following a strategic review during the last six months, the company has introduced measures to reverse this trend. Under Nordic Capital's ownership, Gina Tricot will gain access to a pool of capital and extensive experience of the retail market, leaving the company well positioned to execute on a new strategic plan. Paul Frankenius, who has long and solid experience within investments and executive positions in the fashion industry, will invest as a minority shareholder together with Nordic Capital.
As Nordic Capital becomes a majority owner, a succession plan has been agreed with Jörgen Appelqvist, current CEO and co-founder of Gina Tricot, who will transition into a senior role on the Board. He will be succeeded as CEO by Göran Bille, current CEO at Lindex. Göran Bille has over 30 years of extensive experience in the fashion retail sector having held, amongst other roles, various senior positions at international fashion chain H&M.
"We are impressed by Jörgen and Annette Appelqvist's visionary work creating Gina Tricot as the niche fashion retailer always delivering the latest trends. Together with the Appelqvist family, Nordic Capital looks forward to supporting the company's development. The focus will be on reestablishing a solid platform in order to subsequently further strengthen organic growth - including continued development of Gina Tricot's e-commerce offering", said Michael Haaning, Principal, NC Advisory, advisor to the Nordic Capital funds.
"Together with Nordic Capital, we can focus on further developing Gina Tricot. Nordic Capital is expertly placed to provide both financial resources and industrial experience to support the growth and a new development for Gina Tricot. Our vision is to be the prime fashion retailer in all our markets," says Jörgen Appelqvist, CEO and co-founder.
"I look forward to taking Gina Tricot to the next level together with Nordic Capital and the other shareholders. Gina Tricot has an attractive position in the fast fashion market, and at the same time, I see great potential in strengthening the platform, and further developing the business," says Göran Bille, the incoming CEO.
The acquisition is subject to approval by the competition authorities.
Katarina Janerud, Communication Manager,
NC Advisory AB, advisor to the Nordic Capital funds
Tel: +46 8 440 50 69
Jörgen Appelqvist, CEO and co-founder
Tel: +46 70 666 22 23
About Gina Tricot
Gina Tricot is a Swedish fashion retail chain that consists of 180 stores across the following five markets: Sweden, Norway, Denmark, Finland and Germany. Including growing online sales, Gina Tricot now reaches fashion-conscious women in 28 countries across Europe. Of the total sales, 50% is related to sales outside Sweden. In 2013, Gina Tricot reported sales of circa SEK 2 billion and the company has approx. 2000 employees. The company was founded in 1997 and is headquartered in Borås, Sweden. Gina Tricot's collection targets women of all ages and it includes everything from tailored outerwear to perfectly fitting jeans, essential basic items and glamorous party outfits. Focus is on delivering a concept, rather than a particular product, and Gina Tricot's target group is international, fashion-conscious and diverse. For more information about Gina Tricot, please see www.ginatricot.com
About Nordic Capital
Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VIII with EUR 3.5 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital please see www.nordiccapital.com