Belgian fashion group FNG has completed the acquisition of Scandinavian e-commerce player Ellos. For the Belgian company, the acquisition predominantly means access to a new market: home decoration.
Conquering home decoration
Ellos Group is the online market leader in Scandinavia in both fashion and home decoration, and this makes the acquisition an important strategic step for FNG. CEO Dieter Penninckx explains: "FNG is not only entering the Scandinavian market, but is also expanding into home decoration, which is one of the fastest growing markets online. This new combination will become a strong player in the European market, and shows great potential for the future."
Penninckx uses this statement to respond to criticism from analysts, who previously expressed reservations about the takeover plans. ABN Amro questioned the millions of euros in synergy benefits that were promised and also questioned the financing and benefits of the acquisition.
European expansion is the next step
As the Swedish Competition Authority has greenlit the transaction, the deal can finally be completed. Current shareholders in Ellos will receive shares in FNG, in addition to a cash amount of 984?million Swedish krona (93?million euros) and a combination of loans and bonds. The cash is paid from the proceeds of the stock exchange bonds issued by FNG Nordic.
"European expansion is the logical next step for us, and it can now be taken up a gear with FNG as our new owner. With their extensive experience in the European fashion industry, FNG can offer new insights and strategic support through the next phases of our development," says Hans Ohlsson, CEO of Ellos Group.?