Citadele Bank

AS Lauma International acquires Felina, a lingerie group, from private equity investor palero

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AS Lauma International announces the acquisition of Felina International AG, the parent company of the German-based lingerie group. Felina, whose history dates back to 1885, manufactures and distributes lingerie under the brand names “Felina” and “Conturelle”. The Felina group operates a production facility in Hungary and includes distribution companies in Germany, France, Italy, Spain, USA, Portugal, Poland and Czech Republic. The group is headquartered in Mannheim, Germany.

Felina designs, manufactures, and sells exquisite and comfortable lingerie for confident women who seek the best combination of elegance, perfect fit and quality across all cup sizes. Felina’s distribution network covers most of the European countries and serves over 6,500 dealers worldwide. The group’s sales in 2016 amounted to app 41 million euros; it employs over 700 people.

Lauma International is the parent company for Lauma Fabrics, a leading manufacturer of fabrics, laces and narrow bands for the lingerie industry. Lauma Fabrics operates production facilities in Latvia and Germany. It also manufactures and distributes medical textiles under the brand name “Lauma Medical”. Lauma International is owned by Indrek Rahumaa and John Bonfield.

The sale of Felina to Lauma International marks the exit by palero, a special situation investor, whose strategy involves deep engagement in the operations of its portfolio companies. palero acquired Felina in 2015 and implemented a series of measures which revitalised growth and increased profitability.

With the acquisition of Felina, Lauma International expands its reach to manufacturing and retail of lingerie, forming a new vertically integrated structure with the combined revenue in excess of 75 million euros and a workforce of 1,250 people, which will serve as a platform for further consolidation in the market.

Indrek Rahumaa, the majority shareholder of the buyer, says: “We are pleased to announce today’s acquisition, which is a major step for us and a significant development on the European lingerie market. We are very impressed with palero’s success in optimising Felina’s business over the past two years, making it a clear success story and a very attractive acquisition target.”

The existing management teams of the newly formed group will be led by Peter Partma, who joins the group as the CEO today. Mr Partma is a widely respected manager whose experience includes managing the iconic Tsum department store in Moscow (2008-2015) and overseeing the opening of the first IKEA store in Russia. Mr Partma: “The acquisition of Felina presents an exciting opportunity in a fast-moving and a very competitive market. A lot of work lies ahead, and I am honoured to join the new group at this very promising turning point. I look forward to working with the group’s existing management teams in Latvia, Germany and elsewhere towards market leadership in Europe and beyond”

The transaction is financed by a consortium of banks - Citadele bank and BlueOrange (Baltikums Bank AS), led by Citadele bank. AS LHV Pank acted as an advisor on Lauma International side. Pursuant to the agreement of the parties, the purchase price is confidential. Indrek Rahumaa says: “Citadele bank has been our partner for various projects and I am very grateful that a deal of such magnitude was not an exception. In this deal we found a new partner bank, BlueOrange (Baltikums Bank AS). Given the limited time frame and cross border structure of the transaction, I believe professional team and business oriented thinking were the key factors that secured smooth financing and carrying out the whole process in high quality and timely manner.”

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