Ovs acquires Goldenpoint and strengthens its presence in the underwear market

Ovsone of the best-known brands in the clothing sector in Italy, has announced that it has signed a binding investment agreement with the aim of acquiring Goldenpointthe renowned Italian brand specializing in underwear, swimwear and socks.

A strategic operation

The announcement arrives following the letter of intent signed on 6 February 2024confirming Ovs' commitment to consolidating its position in the underwear and related clothing segment. Goldenpointwith a turnover of approximately 100 million euros and a network of around 380 stores, 80% of which are direct, represents more than a valuable addition to the Ovs portfolio.

Goldenpoint, a prestigious brand

With its consolidated presence on the Italian market, Goldenpoint is known for the quality of its products and its vast network of stores located throughout Italy. This acquisition will allow Ovs to further expand its commercial offering and consolidate its presence in the most important sales points.

A gradual investment

The agreement provides a initial investment of 3 million euros, which will be used to subscribe to a convertible bond and acquire 3% of the share capital of Goldenpoint. By July 31, 2025, Ovs will have the possibility to increase your stake to 51%converting the loan and exercising an option to purchase shares at a pre-determined price.

Ovs has planned a gradual approach to acquire the remaining 49% of Goldenpoint's capital through the exercise of put and call options, in a period between 1 August 2026 and 31 July 2029. The valuation of this share will be determined using a multiple of Ebitda in in line with the multipliers currently adopted by Ovs, with the further consideration of the net financial position. This strategic approach gives Ovs the flexibility to complete the acquisition at an appropriate time, while ensuring a fair and transparent valuation of Goldenpoint's remaining equity stake.

Growth and development

Thanks to the support and integration with Ovs, Goldenpoint's business plan includes a significant increase in sales through the strengthening of the commercial offering, particularly in the underwear and accessories categories, and the expansion of the store network with larger sales outlets.

Future projections

At the end of this development plan, a significant increase in Ebitda is expected, thanks also to improved sourcing and operational leverage. The acquisition is designed so as not to involve significant cash absorption and will be financed entirely through the flows generated by OVS.

Closing of the operation

The closing of the operation is subject to the occurrence of normal regulatory approvals and other conditions typical of similar operations, but represents an important turning point in consolidating Ovs' position in the clothing and underwear market in Italy.

The Venetian group, which recently closed its financial statements as of January 31stdisclosed preliminary data for the year 2023. These data indicate that 2023 ended with a sales increase of 1.4% with the same surface area, highlighting constant growth in the company's core business. Furthermore, adjusted Ebitda increased slightly compared to the previous year, exceeding the 180.2 million euros recorded in 2022.

This is more than positive because an increase in Ebitda indicates that the company's operating income has grown compared to the previous period, and is considered a positive sign of the company's financial health and operational performance.