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SuperGroup acquires franchise partner CNC Collections BVBA for €40 million

SuperGroup acquires franchise partner CNC Collections BVBA for €40 million

SuperGroup (LON:SGP) has acquired its Benelux and France franchise and distribution partner, CNC Collections BVBA, which is the leading franchisee globally for the Superdry brand.

CNC was acquired from its principal Luc Clément.

The maximum aggregate consideration is €40 million of which €7 million is payable in cash on completion with the remaining consideration covered by the issue of shares.

The group is looking to capture greater margins on growing sales within Belgium, the Netherlands, Luxembourg and France, making possible the creation of owned larger format stores in key locations across Europe.

CNC has been a distribution partner of SuperGroup since 2004 and has been a franchisee since April 2008, today managing 29 stores with a number of further planned openings.

“The acquisition of CNC is a major step in our European growth strategy, allowing us to capture additional gross profit in four key territories, driving our franchise acceleration  and opening the possibility of company owned larger format stores in key shopping centres across Europe,” said chief executive of SuperGroup Julian Dunkerton.

CNC’s sales increased 150% over the past year. SuperGroup expects sales to exceed €40 million and consolidated profits to increase in the region of €8 million in the first full 12 months of ownership.

Luc Clément will join the group as head of European franchising.

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