Björn Borg acquires Baseline Group, its distributor in the Benelux

The underwear and sports fashion brand will pay 1.25 million euro for all shares and shareholders’ loans in the Baseline Group over a three-year period.

The Nordic fashion group will thus acquire its current distributor in the Netherlands and Belgium, bidding strongly to vertically integrate the business.

According to the fashion group, the Benelux region is its largest market, ahead of Sweden, accounting for 26 percent of total brand sales in 2015.

As part of the transaction, Björn Borg will also take over working capital financing from local banks of up to 2.8 million euro, and the group’s interest bearing debt will increase with the corresponding amount, as explained by the retailer in a release Thursday.

The distribution agreement for Benelux was terminated in December 2015, to expire in December 2019 when distribution would be taken over by the Björn Borg Group. Björn Borg has signed an agreement to acquire the Baseline Group that operates the Björn Borg business in Benelux, including wholesaling of mainly underwear and sports apparel as well as retail operations of twelve Björn Borg concept and outlet stores in the Netherlands and Belgium.

“I am happy to announce this step for the vertical integration of our business and for getting a stronger hold of the sportswear business. Through the acquisition of the Benelux operations, we increase the potential that we see in this important market and are able to secure the continuity of business by building on the platform that is already in place. We see this as an important investment for future growth, and with the right timing since 2017 is our first year without earn-out payments to the former owner of the Björn Borg brand, which increases our financial capacity for an offensive step like this”, says Henrik Bunge, CEO of Björn Borg.