Kids premium fashion chain Polarn O. Pyret acquires 51 percent of the shares in Kids Company Oy in Finland.
”We have established a solid plan to increase the number of proprietary stores in the coming years,” says Nanna Hedlund, CEO, Polarn O. Pyret.
Kids Company Oy, which is the master franchise business of Polarn O. Pyret in Finland, operates twelve proprietary physical stores as well as an e-commerce store and three franchise stores. The operation generated net sales of about 100 MSEK in 2015.
”It’s a stable business both in terms of profitability and sales with a strong market position. Net sales in the physical stores continue to grow which is also the fact for the e-commerce business,” says Nanna Hedlund.
The twelve current stores are situated throughout Finland with a concentration to the urban areas.
The acquisition is expected to close on March 31, 2016 and also includes a mutual option to acquire respectively sell the remaining 49 percent within a period of four years. Anne Nikula, founder of Kids Company Oy, will remain in her role as CEO of the Finnish business after the acquisition.
”The takeover of the Finnish franchise business is being carried out in light of the strategic review of Polarn O. Pyret we currently are conducting. One of our findings from this review is to further deepen our presence in our core markets. The acquisition will enhance Polarn O. Pyrets´ market leading position in the Nordic region, says Magnus Håkansson, President and CEO of RNB.