Fenix Outdoor Strengthens Presence with Devold Acquisition
Fenix Outdoor's New Majority Stake in Devold
Fenix Outdoor International AG, recognized as a leader in premium outdoor apparel and equipment, has secured a 65% acquisition of shares in Devold of Norway AS. This strategic move positions Devold as Fenix Outdoor's primary wool brand, highlighting the commitment to quality and innovation in outdoor clothing.
A Perfect Partnership for Quality and Innovation
Martin Axelhed, Executive Vice President of Fenix Outdoor, expressed enthusiasm regarding the acquisition, stating, “We have searched extensively for a premium wool brand to complement our portfolio.” His statement underlines the brand's intention to honor Devold's legacy and standards while bringing their high-performance garments to a broader audience.
The Significance of Devold's Heritage
Devold has established itself as a pioneer in producing wool clothing tailored for outdoor pursuits and protective workwear. Øystein Vikingsen Fauske, CEO of Devold, noted that Fenix Outdoor’s extensive retail network and customer service align perfectly with Devold’s commitment to quality and sustainability. This partnership is seen as pivotal in advancing Devold's mission to make outdoor experiences accessible to everyone.
Financial Aspects of the Acquisition
The financial implications of this acquisition are notable, with Fenix Outdoor investing 35 million EUR to acquire the majority stake. This amount will be funded through a mix of cash and treasury shares, showcasing Fenix’s confidence in the long-term value of the acquisition. The seller, Flakk Group, retains a 35% stake in Devold, indicating their continued involvement in the brand's future.
Shared Vision for Global Growth
Knut Flakk, Chair of Devold, highlighted the synergy between the two companies, expressing a shared vision of enhancing people's connection with nature. By joining forces, Fenix and Devold aim to implement an international growth strategy, which is set to deliver significant value for both parties in the future.
Advisory Support and Compliance
In this transaction, Capient AS has served as a strategic and financial adviser to Flakk Group and Devold, while Schjødt AS offered legal advisory support. Advokatfirmaet Hjort AS advised Fenix Outdoor, underscoring the comprehensive professional backing involved in executing this major acquisition.
About Fenix Outdoor
Fenix Outdoor is the parent company of renowned brands such as Fjällräven, Tierra, Hanwag, Royal Robbins, and Frilufts Retail. The company embodies a mission to inspire individuals worldwide to embrace the outdoors with premium products.
About Devold
With a history stretching back to 1853, Devold has been at the forefront of wool clothing production, known for its relentless commitment to quality. Their product range includes underwear, mid-layers, outerwear, and accessories made from wool. Approximately 40% of their products are exported internationally, focusing primarily on the European market.
Frequently Asked Questions
What prompted Fenix Outdoor to acquire Devold?
Fenix Outdoor aimed to add a premium wool brand to their portfolio, complementing their extensive outdoor product offerings.
How much did Fenix pay for the majority stake in Devold?
Fenix Outdoor invested 35 million EUR to acquire 65% of Devold’s shares.
What is the significance of this partnership for Devold?
This acquisition positions Devold as the primary wool brand under Fenix Outdoor, enhancing their marketing and distribution capabilities globally.
What will happen to Flakk Group's stake in Devold?
Flakk Group will continue to hold a 35% stake in Devold, allowing them to remain involved with the brand's strategic direction.
How does this acquisition align with Fenix Outdoor's mission?
The acquisition aligns with Fenix Outdoor's mission to inspire outdoor experiences and expand accessibility to quality outdoor clothing.
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