Outdoor gear and apparel company Group Lafuma France has taken over 100 percent of the capital stock of 25-year-old Germany-based Big Pack GmbH as of May 1, including the joint venture, Big Pack of Nanjing, China. The purchase price was not disclosed and negotiations continue concerning details of the acquisition, European sources say. Big Pack had suffered a loss of Euro 8.9 million ($ USD 8 million) in 2001, while Group Lafuma showed sales of Euro 137.9 million (USD $ 124.6 million) in FY 2001 with increasing revenues. The takeover of Big Pack will allow Lafuma to build its presence in Germany, widely considered the second most-important foreign market for France next to the United States. Lafuma's Germany headquarters will be at the former Big Pack offices, and the French company will work with Big Pack to develop products geared for the German market. SNEWS® View: It's hard to get a lot of mergers and acquisitions past the industry without rumors leaking, but SNEWS® sources say this surprise bomb was dropped completely out of the blue, knocking everyone back into their chairs. Nothing had leaked, although with numbers in the red appearing on Big Pack's financial statement, rumors had indeed been flying that the future wasn't so bright for the company. "So goes further consolidation," one SNEWS® source said with sigh nearly audible over the email.
Did you hear?... Lafuma earnings have jumped 50.8 percent
Lafuma earnings have jumped 50.8 percent reaching about 1 Million Euros (USD $ 950,000). Sales for the company climbed 5.8 percent to 65.57 million Euros (USD$ 61.99 million). Lafuma owns the accessories brand Millet, sport apparel company and camping specialist Lallemand. ...read more